Hsin Kao Gas Co., Ltd. (9931) AI Stock Analysis

Hsin Kao Gas Co., Ltd.

(TWSE:9931)

Select Model

Rating:70Outperform

Price Target:TWD 37.00▲(8.03% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 70 reflects a stable, defensive company with a strong balance sheet and attractive dividend yield. The most significant positive factors are the company's very low debt levels and the high shareholder yield of over 5%. These strengths are partially offset by a neutral technical picture, which shows no positive momentum, and a core financial performance that, while stable, is facing gradual gross margin compression. The stock is a solid income play but lacks near-term catalysts for price appreciation.

Positive Factors

Regulated utility businessOperating in Taiwan’s downstream gas market gives the company a utility-oriented business profile, which can support resilience and recurring customer demand. This structural positioning provides a steadier foundation for earnings than more discretionary or highly cyclical businesses.

Negative Factors

Recent revenue and margin pressureThe sharp 2025 top-line step-down, combined with lower operating and EBITDA margins, indicates that recent growth and profitability momentum have weakened. If this pattern persists, it could reduce operating leverage and limit the company’s ability to expand earnings over the next several quarters.

Hsin Kao Gas Co., Ltd. (9931) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.12B
Dividend Yield: 5.26%
Average Volume (3M): 22.39K
Price to Earnings (P/E): 11.8
Beta (1Y): -0.13
Revenue Growth: 13.67%
EPS Growth: 6.38%
Country: TW
Employees: 108
Sector: General
Sector Strength: 55
Industry: Regulated Gas

Hsin Kao Gas Co., Ltd. Business Overview & Revenue Model

Company Description

Hsin Kao Gas Co.,Ltd. is a Taiwanese enterprise that supplies natural gas to residential and commercial clients across the nation. Its operations also encompass the creation, procurement, and distribution of natural gas appliances and related equipme...

Hsin Kao Gas Co., Ltd. Financial Statement Overview

Summary

Hsin Kao Gas shows a solid financial foundation with a very strong, low-debt balance sheet (Score 82) and healthy, improving cash flow generation (Score 70). The primary offset is the income statement (Score 65), where top-line recovery is tempered by compressing gross margins and volatile net income. Overall, the company presents a conservative, stable financial profile.

Income Statement

65Positive

Balance Sheet

82Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.63B	1.57B	1.95B	1.23B	1.25B	1.19B
Gross Profit	268.38M	285.05M	420.13M	232.69M	226.34M	232.34M
EBITDA	364.22M	438.58M	598.06M	443.52M	448.12M	471.37M
Net Income	344.99M	294.55M	344.13M	173.22M	173.28M	237.36M
Balance Sheet
Total Assets	7.64B	6.71B	6.29B	6.10B	5.50B	5.21B
Cash, Cash Equivalents and Short-Term Investments	2.32B	1.52B	1.25B	1.02B	775.38M	890.70M
Total Debt	343.95M	327.93M	240.25M	719.03M	543.42M	281.28M
Total Liabilities	3.64B	3.28B	3.17B	3.41B	3.10B	2.75B
Stockholders Equity	3.88B	3.31B	3.05B	2.64B	2.36B	2.41B
Cash Flow
Free Cash Flow	349.71M	374.40M	677.52M	86.83M	134.73M	99.37M
Operating Cash Flow	656.23M	682.89M	962.92M	320.81M	339.15M	361.78M
Investing Cash Flow	-444.75M	-522.13M	-309.45M	-363.08M	-457.17M	-450.57M
Financing Cash Flow	-115.23M	-138.55M	-595.75M	129.05M	102.63M	-25.08M

Hsin Kao Gas Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:9931 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:9931	70Outperform	TWD 4.10B	11.81	―	5.26%	13.67%	6.38%
TW:4580	63Neutral	TWD 3.77B	13.24	―	4.99%	-2.83%	2.78%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1611	54Neutral	TWD 3.79B	41.91	―	6.90%	-9.42%	64.46%
TW:9934	43Neutral	TWD 3.85B	13.36	―	1.08%	2.25%	309.21%

* General Sector Average

Performance Comparison

TW:9931 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:9931	Hsin Kao Gas Co., Ltd.	34.25	2.42	7.61%
TW:1611	China Electric MFG Corp.	11.60	-0.24	-2.04%
TW:4580	Value Valves Co., Ltd.	80.20	1.99	2.55%
TW:6987	Ina Energy Corporation	19.65	-2.79	-12.41%
TW:7897	Whole Sun Green Power Co., Ltd.	27.35	-43.13	-61.20%
TW:9934	Globe Union Industrial Corp.	9.28	-0.59	-6.00%

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: Nov 09, 2026

Hsin Kao Gas Co., Ltd. AI Stock Analysis