China Gas Holdings (CGHLY) AI Stock Analysis

• Market Cap: $5.50B
• Dividend Yield: 5.85%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.20
• Revenue Growth: -2.02%
• EPS Growth: -9.40%
• Country: US
• Employees: 70,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.79
• Shares Outstanding: 217,926,120
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 6.53
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 20.39
• Enterprise Value/Market Cap: 15.93
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 7.78
• Enterprise Value/Ebitda: 9.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $30.00 ▲(18.95% Upside)

The overall stock score for China Gas Holdings is primarily influenced by its mixed financial performance, with stable profitability but declining revenue growth and cash flow challenges. The technical analysis indicates a positive trend but warns of overbought conditions. The valuation is favorable, with a reasonable P/E ratio and attractive dividend yield, providing a balance between growth and income.

Positive Factors

Stable Profitability

Stable profitability indicates effective cost management and operational efficiency, providing a solid foundation for long-term financial health.

Operational Efficiency

Improved margins suggest enhanced operational efficiency, which can lead to better resource utilization and increased profitability over time.

Strong Partnerships

Strong partnerships can secure long-term contracts and expand service reach, providing a stable revenue base and competitive advantage.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder the company's ability to expand and invest in new opportunities, potentially impacting future competitiveness.

Increasing Debt Levels

Rising debt levels can increase financial risk and limit flexibility, potentially affecting the company's ability to invest in growth initiatives.

Cash Flow Sustainability

Challenges in cash generation can affect the company's ability to fund operations and growth, posing risks to long-term financial stability.

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 generates revenue primarily through the sale of natural gas to residential, commercial, and industrial customers via its extensive pipeline network. The company earns money from its city gas distribution operations, where it charges customers for the gas consumed and collects connection fees from new customers. Additionally, CGHLY engages in the distribution of LNG, which adds another revenue stream. The company also benefits from its investments in gas-related infrastructure, including storage facilities and processing plants. Strategic partnerships with local governments and other energy companies enhance its operational reach and support its revenue growth. The increasing demand for cleaner energy solutions in China further drives the company's earnings potential.

China Gas Holdings Financial Statement Overview

Summary

China Gas Holdings presents a mixed financial picture. The income statement reflects stable profitability but declining revenue growth, which could impact future performance. The balance sheet shows moderate leverage and stable equity management, though increasing debt levels pose a risk. The cash flow statement indicates challenges in cash generation, despite recent improvements in free cash flow. The company needs to address revenue growth and cash flow sustainability to enhance its financial health.

Income Statement

China Gas Holdings shows a mixed performance in its income statement. The company has experienced a decline in revenue growth over the past two years, with a negative growth rate in the most recent period. However, the company maintains stable gross and net profit margins, indicating efficient cost management. The EBIT and EBITDA margins have improved slightly, suggesting operational efficiency gains. Overall, the income statement reflects stability in profitability but highlights concerns regarding revenue growth.

Balance Sheet

The balance sheet of China Gas Holdings indicates a moderate level of financial stability. The debt-to-equity ratio has increased slightly, reflecting higher leverage, but remains within a manageable range. The equity ratio is stable, and the return on equity has shown a downward trend, which could be a concern for investors. Overall, the balance sheet suggests a balanced approach to leveraging and equity management, with some potential risks due to increasing debt levels.

Cash Flow

The cash flow statement reveals some challenges for China Gas Holdings. While the operating cash flow remains positive, the free cash flow has shown volatility, with recent improvements. The operating cash flow to net income ratio is relatively low, indicating potential issues in converting income into cash. The free cash flow to net income ratio has improved but remains below optimal levels. Overall, the cash flow statement highlights concerns about cash generation and sustainability.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	79.26B	79.26B	91.99B	81.41B	88.23B	69.98B
Gross Profit	11.26B	11.26B	12.03B	11.30B	15.74B	18.10B
EBITDA	8.82B	10.00B	10.71B	8.50B	12.39B	14.89B
Net Income	3.25B	3.25B	4.29B	3.18B	7.66B	10.48B
Balance Sheet
Total Assets	148.22B	148.22B	157.29B	148.70B	163.15B	140.72B
Cash, Cash Equivalents and Short-Term Investments	8.89B	8.89B	10.72B	8.12B	10.29B	9.26B
Total Debt	60.42B	60.42B	61.39B	59.24B	57.70B	50.70B
Total Liabilities	87.49B	87.49B	92.50B	87.95B	91.08B	80.86B
Stockholders Equity	53.86B	53.86B	57.90B	53.93B	63.58B	51.94B
Cash Flow
Free Cash Flow	1.80B	1.77B	2.30B	5.28B	-673.72M	-1.12B
Operating Cash Flow	6.44B	6.44B	8.26B	11.34B	8.34B	7.23B
Investing Cash Flow	-1.78B	-1.78B	-10.08B	-7.05B	-15.86B	-8.89B
Financing Cash Flow	-3.81B	-3.81B	2.95B	-5.86B	8.78B	2.57B

China Gas Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.22
• 50DMA: Negative
• 100DMA: Negative
• 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 25.22 is below the 20-day moving average (MA) of 25.94, below the 50-day MA of 26.44, and above the 200-day MA of 24.20, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 40.12 is Neutral, neither overbought nor oversold. The STOCH value of 18.98 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
SWX	74 Outperform	$5.83B	12.59	5.42%	3.07%	-23.15%	157.45%
UGI	70 Outperform	$8.19B	12.32	14.87%	3.92%	1.10%	140.04%
SR	69 Neutral	$4.90B	18.98	8.20%	3.82%	-4.50%	2.49%
OGS	69 Neutral	$4.66B	18.10	8.51%	3.45%	15.06%	12.27%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CGHLY	64 Neutral	$5.50B	15.09	6.04%	5.85%	-2.02%	-9.40%
NJR	64 Neutral	$4.64B	13.83	14.62%	4.01%	13.94%	13.93%