China Gas Holdings (CGHLY) AI Stock Analysis

• Market Cap: $5.62B
• Dividend Yield: 5.17%
• Average Volume (3M): 3.00
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.17
• Revenue Growth: -5.19%
• EPS Growth: 9.01%
• 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: 0
• 30 Day Avg. Volume: 3
• PEG Ratio: -8.13
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.81
• 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

• Rating: 73 Outperform
• Price Target: ―

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 operates as a gas operator and service provider in the People's Republic of China. The company invests in, constructs, operates, and maintains city and town gas pipeline infrastructure facilities, gas terminals, storage and transportation facilities, and gas logistics systems; transmits natural gas and liquefied petroleum gas (LPG) to residential, industrial, and commercial users; constructs and operates compressed natural gas/liquefied natural gas refilling stations; and develops technologies related to natural gas and LPG. It is also involved in the investment in petrochemical facilities of storage and transportation; producing and storing LPG and chemical products, as well as propane and butane; CBM business; exploration and production of coal bed methane; and gas station administration, management, and consultancy services. In addition, the company offers treasury, management, consultancy, and procurement services; and smart home products and gas insurance broker services, as well as gas heaters and kitchen appliances under the Gasbo brand. Further, it is involved in the development and investment in clean energy; wholesale and trading of natural gas and liquefied natural gas; sale of electricity; and provides gas meters, pressure regulators, corrugated pipes, gas alarms, and bottled gas. Additionally, the company engages in the wholesale and retail of household equipment, electric appliances, and kitchen appliances. As of March 31, 2022, it served 19,808 industrial and 297,664 commercial customers; and 43,095,245 residential customers, as well as operates 533 CNG/LNG refilling stations. The company was incorporated in 1995 and is headquartered in Wan Chai, Hong Kong.

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 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	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
EBITDA	8.50B	8.85B	12.39B	14.89B	14.44B
Net Income	3.18B	4.29B	7.66B	10.48B	9.19B
Balance Sheet
Total Assets	148.70B	157.29B	163.15B	140.72B	112.10B
Cash, Cash Equivalents and Short-Term Investments	8.12B	10.72B	10.29B	9.26B	7.66B
Total Debt	59.24B	61.39B	57.70B	50.70B	39.92B
Total Liabilities	87.95B	92.50B	91.08B	80.86B	66.30B
Stockholders Equity	53.93B	57.90B	63.58B	51.94B	39.60B
Cash Flow
Free Cash Flow	5.28B	2.30B	-673.72M	-1.12B	-2.16B
Operating Cash Flow	11.34B	8.26B	8.34B	7.23B	4.97B
Investing Cash Flow	-7.05B	-10.08B	-15.86B	-8.89B	-9.41B
Financing Cash Flow	-5.86B	2.95B	8.78B	2.57B	-883.00M

China Gas Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 25.77 is above the 20-day moving average (MA) of 24.38, above the 50-day MA of 23.67, and above the 200-day MA of 22.07, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 73.43 is Negative, neither overbought nor oversold. The STOCH value of 98.78 is Negative, 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	$7.79B	14.97	10.84%	4.13%	-4.30%	―
NJR	76 Outperform	$4.59B	11.08	17.83%	4.85%	20.30%	63.69%
CGHLY	73 Outperform	$5.62B	13.30	6.04%	5.17%	-5.19%	9.01%
SR	72 Outperform	$4.45B	18.59	7.30%	4.17%	-7.10%	2.54%
OGS	71 Outperform	$4.40B	17.74	8.08%	3.62%	7.73%	2.36%
SWX	68 Neutral	$5.61B	25.00	6.49%	3.18%	-10.78%	16.27%
Sector *	60 Neutral	C$5.01B	-17.70	-18.56%	4.79%	11.65%	-69.08%