China Gas Holdings (CGHLY) AI Stock Analysis

• Market Cap: $5.76B
• Dividend Yield: 5.05%
• Average Volume (3M): 82.00
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.19
• Revenue Growth: -2.24%
• EPS Growth: 2.37%
• Country: US
• Employees: 70,000
• Sector: Utilities
• Sector Strength: 76
• Industry: Regulated Gas
• EPS (TTM): 0.88
• Shares Outstanding: 217,926,120
• 10 Day Avg. Volume: 107
• 30 Day Avg. Volume: 82
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.09
• Enterprise Value/Ebitda: 1.48
• 1Y Price Target: $29.00
• Price Target Upside: 9.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $29.00 ▲(9.85% Upside)

China Gas Holdings receives a score of 72.5, driven by a strong valuation and positive technical indicators. The company's stable profitability and attractive dividend yield are significant strengths. However, concerns about declining revenue growth and cash flow sustainability weigh on the overall score. Addressing these financial challenges could enhance future performance.

China Gas Holdings Business Overview & Revenue Model

Company Description

China Gas Holdings Limited (CGHLY) is a leading natural gas service provider in China, primarily engaged in the distribution and sale of natural gas for residential, commercial, and industrial uses. The company operates in various sectors including city gas distribution, liquefied natural gas (LNG) sales, and the construction and operation of gas pipelines. CGHLY also invests in and manages gas storage facilities, ensuring a reliable supply of natural gas to its customers.

How the Company Makes Money

China Gas Holdings generates revenue primarily through the distribution of natural gas to residential, commercial, and industrial customers. The company earns income from gas sales based on the volume of gas delivered and through fixed fees associated with its pipeline infrastructure. Additionally, CGHLY profits from the construction of gas pipelines and infrastructure projects, often under long-term contracts with local governments. Significant revenue streams also include sales of liquefied natural gas (LNG) and related services. Partnerships with municipal governments and collaborations with industrial clients play a crucial role in securing contracts and expanding its service reach, contributing to its overall earnings.

China Gas Holdings Financial Statement Overview

Summary

China Gas Holdings shows a mixed financial performance. While the company benefits from strong cash flow management with a 29.8% increase in free cash flow from 2023 to 2024, declining revenue and profit margins are concerning. The balance sheet reflects a high leverage position, which could impact financial flexibility. The company needs to address revenue growth and profitability to enhance its financial standing while maintaining strong cash flow operations.

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	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.47B	79.26B	81.41B	91.99B	88.23B	69.98B
Gross Profit	11.44B	11.26B	11.30B	12.03B	15.74B	18.10B
EBITDA	8.37B	10.00B	8.50B	8.85B	12.39B	14.89B
Net Income	3.12B	3.25B	3.18B	4.29B	7.66B	10.48B
Balance Sheet
Total Assets	153.47B	148.22B	148.70B	157.29B	163.15B	140.72B
Cash, Cash Equivalents and Short-Term Investments	9.23B	8.89B	8.12B	10.72B	10.29B	9.26B
Total Debt	60.77B	60.42B	59.24B	61.39B	57.70B	50.70B
Total Liabilities	89.31B	87.49B	87.95B	92.50B	91.08B	80.86B
Stockholders Equity	57.12B	53.86B	53.93B	57.90B	63.58B	51.94B
Cash Flow
Free Cash Flow	1.46B	1.77B	5.28B	2.30B	-673.72M	-1.12B
Operating Cash Flow	7.46B	6.44B	11.34B	8.26B	8.34B	7.23B
Investing Cash Flow	-5.92B	-1.78B	-7.05B	-10.08B	-15.86B	-8.89B
Financing Cash Flow	-4.03B	-3.81B	-5.86B	2.95B	8.78B	2.57B

China Gas Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGHLY, the sentiment is Neutral. The current price of 26.4 is above the 20-day moving average (MA) of 26.39, above the 50-day MA of 25.44, and above the 200-day MA of 22.63, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 38.73 is Neutral, neither overbought nor oversold. The STOCH value of 11.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CGHLY.

China Gas Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJR	77 Outperform	$4.81B	11.71	18.03%	3.76%	21.88%	71.35%
CGHLY	73 Outperform	$5.76B	13.63	6.04%	5.05%	-2.24%	2.37%
SR	71 Outperform	$4.60B	16.83	8.37%	3.99%	-6.65%	11.47%
OGS	68 Neutral	$4.62B	18.37	8.24%	3.47%	13.43%	6.49%
UGI	68 Neutral	$7.59B	18.62	8.75%	4.25%	-0.52%	-39.42%
Sector *	67 Neutral	$17.80B	18.42	5.29%	3.53%	7.33%	12.21%
SWX	65 Neutral	$5.63B	29.13	5.41%	3.17%	-10.07%	5.98%