Hong Kong & China Gas (HOKCY) AI Stock Analysis

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Hong Kong & China Gas

(Other OTC:HOKCY)

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Rating:65Neutral

Price Target:$0.96▲(3.02% Upside)

Action:reiterated

Date:08/04/26

The score reflects stable-but-unspectacular fundamentals: steady utility-like profitability and improving free cash flow are balanced by weak revenue growth, 2025 gross-margin pressure, and higher leverage. Technical indicators add a modest positive tilt (improving short-term trend and positive momentum), while valuation is supported by a strong dividend yield but tempered by a relatively high P/E.

Positive Factors

Stable Utility ProfitabilityResilient net and operating margins show that the regulated utility model continues to support dependable profitability. This provides a durable earnings base even when revenue growth is limited or operating costs fluctuate.

Negative Factors

Weak Revenue GrowthPersistent revenue softness indicates limited near-term expansion from the existing business base. Without stronger customer growth, consumption, or contribution from newer energy activities, weak top-line momentum may constrain operating leverage.

Hong Kong & China Gas (HOKCY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $15.30B
Dividend Yield: 4.42%
Average Volume (3M): 21.58K
Price to Earnings (P/E): 20.8
Beta (1Y): -0.13
Revenue Growth: 1.23%
EPS Growth: 12.63%
Country: US
Employees: 2,146
Sector: Utilities
Sector Strength: 66
Industry: Regulated Gas

Hong Kong & China Gas Business Overview & Revenue Model

Company Description

Established in 1862 and headquartered in North Point, Hong Kong, The Hong Kong and China Gas Company Limited is a comprehensive energy and utilities provider. The company's core business revolves around the production, distribution, and marketing of...

How the Company Makes Money

The company primarily makes money by supplying gas to end users and charging for associated services and infrastructure. In Hong Kong, a major revenue stream is the sale of town gas to residential, commercial, and industrial customers, typically unde...

Hong Kong & China Gas Financial Statement Overview

Summary

Fundamentals are stable but not strong: revenue growth has been weak with a modest decline in 2025, and 2025 saw sharp gross-margin compression. Offsetting this, profitability remains utility-like (net margin ~10.5%, EBIT margin ~15% in 2025) and cash generation improved with free cash flow more than doubling year-over-year. The key risk is rising leverage over time (debt-to-equity ~1.01 in 2025), reducing financial flexibility.

Income Statement

62Positive

Balance Sheet

58Neutral

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	56.35B	54.23B	55.47B	56.97B	60.95B	53.56B
Gross Profit	12.48B	12.96B	23.11B	21.98B	14.38B	14.02B
EBITDA	11.80B	11.92B	14.32B	11.88B	11.89B	12.11B
Net Income	6.37B	5.68B	5.71B	6.18B	5.36B	5.13B
Balance Sheet
Total Assets	168.01B	163.54B	158.27B	161.98B	168.47B	168.07B
Cash, Cash Equivalents and Short-Term Investments	9.97B	8.01B	7.69B	10.41B	13.36B	10.63B
Total Debt	62.60B	61.00B	58.81B	56.91B	60.44B	55.92B
Total Liabilities	95.30B	92.16B	89.94B	90.96B	95.71B	88.61B
Stockholders Equity	60.17B	59.35B	57.39B	59.85B	63.61B	69.81B
Cash Flow
Free Cash Flow	6.05B	5.40B	2.54B	2.50B	1.40B	2.20B
Operating Cash Flow	10.62B	10.53B	9.00B	10.93B	9.73B	10.62B
Investing Cash Flow	-4.24B	-2.59B	-2.31B	-2.50B	-8.41B	-13.47B
Financing Cash Flow	-6.76B	-7.90B	-9.21B	-12.45B	1.91B	5.39B

Hong Kong & China Gas Technical Analysis

Technical Analysis SentimentPositive

Last Price0.93

Price Trends

50DMA0.91Positive

100DMA0.88Positive

200DMA0.89Positive

Market Momentum

MACD0.00Negative

RSI59.46Neutral

STOCH38.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOKCY, the sentiment is Positive. The current price of 0.93 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.91, and above the 200-day MA of 0.89, indicating a bullish trend. The MACD of 0.00 indicates Negative momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOKCY.

Hong Kong & China Gas Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

HOKCY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWX	81Outperform	$6.74B	12.96	12.89%	2.72%	-63.47%	166.76%
ATO	74Outperform	$29.14B	20.31	9.67%	2.32%	6.45%	15.84%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
HOKCY	65Neutral	$17.29B	20.77	10.65%	4.42%	1.23%	12.63%
NI	61Neutral	$21.38B	22.62	9.83%	2.69%	9.97%	3.46%
OGS	60Neutral	$4.94B	16.85	8.42%	3.45%	-0.78%	10.67%
SR	58Neutral	$5.20B	9.79	15.87%	3.75%	4.12%	93.82%

* Utilities Sector Average

Performance Comparison

HOKCY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HOKCY	Hong Kong & China Gas Co. Ltd. Sponsored ADR	0.93	0.03	3.81%
ATO	Atmos Energy	172.41	3.62	2.15%
SR	Spire Inc	88.00	3.60	4.26%
NI	Nisource	44.57	3.10	7.49%
SWX	Southwest Gas	93.08	14.42	18.33%
OGS	ONE Gas Inc	78.54	-0.32	-0.41%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 04, 2026

Hong Kong & China Gas AI Stock Analysis

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