China Gas Holdings (CGHLY) AI Stock Analysis

• Market Cap: $4.85B
• Dividend Yield: 6.66%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.27
• Revenue Growth: -5.19%
• EPS Growth: 9.01%
• Country: US
• Employees: 70,000
• Sector: Utilities
• Sector Strength: 93
• Industry: Regulated Gas
• EPS (TTM): 1.84
• Shares Outstanding: 217,926,120
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 1.33
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.59
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

China Gas Holdings has a solid overall stock score driven by its strong cash flow management and attractive valuation metrics, including a high dividend yield. However, challenges such as declining revenue and profit margins, along with a high leverage position, present risks. Technical indicators suggest caution due to mixed market momentum, further emphasizing the need for strategic improvements in financial performance.

China Gas Holdings Business Overview & Revenue Model

Company Description

China Gas Holdings Limited (CGHLY) is a leading natural gas operator in China, primarily engaged in the investment, operation, and management of city gas pipeline infrastructure, gas terminals, and storage and transportation facilities. The company focuses on the distribution and sale of piped natural gas, liquefied natural gas (LNG), and liquefied petroleum gas (LPG), serving residential, commercial, and industrial users across the country. As a key player in China's energy sector, China Gas Holdings is committed to promoting clean energy solutions and supporting the nation's environmental and economic goals.

How the Company Makes Money

China Gas Holdings makes money through several revenue streams, primarily from the sale and distribution of natural gas to residential, commercial, and industrial customers. The company generates revenue by charging for the supply of piped natural gas, liquefied natural gas (LNG), and liquefied petroleum gas (LPG). Additionally, China Gas Holdings earns income from gas connection fees for new users and the construction of gas pipeline infrastructure. The company also engages in the sale of gas appliances and equipment. Strategic partnerships with local governments and other energy companies enhance its market reach and growth potential, contributing to its earnings by expanding its customer base and facilitating infrastructure development.

China Gas Holdings Financial Statement Overview

Summary

China Gas Holdings exhibits a mixed financial performance. Strong cash flow management is a positive, with a 29.8% increase in free cash flow from 2023 to 2024. However, declining revenue and profit margins, coupled with a high leverage position, pose challenges to financial flexibility. The balance sheet indicates potential risks due to a high debt-to-equity ratio of 1.1.

Income Statement

The income statement reflects strong gross profit margins averaging around 13.8% over the recent years, which is a positive signal. However, there is a noticeable decline in revenue from 2023 to 2024, with a negative revenue growth rate of -11.5%. Net profit margins have also been decreasing from 7.4% in 2023 to 3.9% in 2024, indicating potential challenges in cost management or pricing strategies. The EBIT and EBITDA margins indicate solid operational performance, though they have also shown a slight decline in recent years.

Balance Sheet

The balance sheet shows a consistent equity ratio of approximately 36.3% in 2024, suggesting a balanced use of equity in financing. However, the debt-to-equity ratio of approximately 1.1 indicates a high reliance on debt, which poses a leverage risk, especially given the decreasing equity from 2022 to 2024. Return on equity has decreased from 7.4% in 2023 to 5.9% in 2024, reflecting reduced profitability relative to shareholders' equity.

Cash Flow

The company has demonstrated positive free cash flow growth, increasing from 2023 to 2024 by 29.8%, which is a strong indicator of efficient cash management and operational efficiency. The operating cash flow to net income ratio is favorable, reflecting strong cash generation relative to reported earnings, though the free cash flow to net income ratio suggests room for improvement. The cash flow from operations has been consistently positive, supporting the company's liquidity.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
81.41B	91.99B	88.23B	69.98B	59.54B
	Gross Profit
11.30B	12.03B	15.74B	18.10B	17.10B
	EBIT
5.59B	5.08B	13.07B	15.56B	14.12B
	EBITDA
8.50B	10.71B	14.84B	17.65B	15.88B
	Net Income Common Stockholders
3.18B	4.29B	7.66B	10.48B	9.19B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.12B	10.54B	10.12B	8.98B	7.12B
	Total Assets
148.70B	157.29B	163.15B	140.72B	112.07B
	Total Debt
59.24B	61.39B	57.70B	50.70B	39.92B
	Net Debt
51.14B	50.95B	47.69B	42.41B	32.80B
	Total Liabilities
87.95B	92.50B	91.08B	80.86B	66.28B
	Stockholders Equity
53.93B	57.90B	63.58B	51.94B	39.60B
Cash Flow		Free Cash Flow
5.28B	4.07B	867.30M	-71.24M	-640.85M
	Operating Cash Flow
11.34B	10.03B	9.88B	8.28B	6.49B
	Investing Cash Flow
-7.05B	-7.51B	-12.21B	-8.32B	-9.45B
	Financing Cash Flow
-5.86B	-1.41B	3.69B	865.58M	-2.66B

China Gas Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.27
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGHLY, the sentiment is Positive. The current price of 22.27 is above the 20-day moving average (MA) of 22.19, below the 50-day MA of 22.39, and above the 200-day MA of 21.28, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 70.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGHLY.

China Gas Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UGI	76 Outperform	$7.01B	12.85	12.22%	4.60%	-14.01%	―
SR	75 Outperform	$4.49B	18.67	7.76%	4.00%	-3.96%	11.40%
OGS	75 Outperform	$4.66B	20.09	7.59%	3.40%	-12.16%	-5.73%
CGHLY	73 Outperform	$4.85B	11.99	5.56%	6.66%	-5.19%	9.01%
NJR	71 Outperform	$4.93B	14.80	15.15%	3.60%	9.18%	36.67%
SWX	70 Outperform	$5.21B	26.53	5.84%	3.42%	-5.92%	29.47%
Sector *	63 Neutral	$8.54B	12.50	6.24%	4.37%	2.99%	-10.18%