China Gas Holdings (CGHLY) AI Stock Analysis

• Market Cap: $5.37B
• Dividend Yield: 5.85%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.23
• 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: 17.17
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 8.19
• Enterprise Value/Ebitda: 10.46
• 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: $26.00 ▲(4.97% Upside)
• Action: Downgraded Date: 11/12/25
• Date: Action: Downgraded 11/12/25

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

Regulated utility-like revenue mix

A revenue mix anchored by regulated/contracted utility-style sales provides a stable, tariff-linked earnings base that reduces commodity volatility exposure. This recurring income profile supports long-term planning, steady cash inflows, and financing of capital-intensive distribution networks.

Stable and improving operating margins

Sustained gross/net margins and modest EBIT/EBITDA improvement point to effective cost control and operational efficiency. Durable margins enhance resilience to procurement cost swings, help finance maintenance and expansion, and support EBITDA-driven covenant metrics over time.

Manageable leverage and balanced capital structure

A balance sheet characterized as moderately stable with manageable leverage preserves financial flexibility for network capex and connection projects. Controlled debt levels reduce refinancing strain and help the company absorb regulatory or demand shocks over the medium term.

Negative Factors

Declining revenue growth

Persistent top-line decline erodes scale benefits in a fixed-cost distribution business, reducing the ability to spread network costs and fund growth. Sustained revenue weakness makes it harder to improve margins, service debt, and finance new customer connections without external capital.

Weak cash conversion and volatile free cash flow

Low cash conversion and volatile free cash flow constrain self-funded investment in pipelines and connections. This increases reliance on external financing for capex or dividend commitments, raising refinancing risk and potentially limiting the pace of durable network expansion.

Declining return on equity

A falling ROE signals weakening capital efficiency, meaning the company generates less profit per unit of shareholder equity. Over time this can pressure investor returns, suggest suboptimal allocation of capital, and exacerbate funding needs if growth initiatives underperform.

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 primarily makes money from the downstream natural gas value chain through a mix of regulated/contracted utility-like revenues and market-driven service revenues. Key revenue streams typically include: (1) Natural gas sales to end-users: The company purchases natural gas from upstream suppliers and sells it through its city-gas distribution networks to residential, commercial, and industrial customers. Revenue is generated from the volume of gas delivered multiplied by applicable tariffs/pricing frameworks, while gross profit depends on the spread between procurement costs and retail/wholesale selling prices, as well as network operating efficiency and loss control. (2) Connection and installation fees: When new customers or new developments are connected to the gas network, the company earns fees for engineering, pipeline connection, meter installation, and related construction/commissioning work. This revenue is driven by new customer additions, urban development, and network expansion projects. (3) Operation, maintenance, and service income: The company earns service-related income from activities tied to running and maintaining distribution assets and providing customer services (e.g., metering, safety inspections, maintenance and related technical services where applicable). (4) Value-added and integrated energy services: The company may generate additional revenue by offering energy solutions that leverage natural gas infrastructure and customer relationships (for example, energy management or integrated energy supply arrangements). The scale and specifics of these offerings vary by project and locality. Factors that significantly influence earnings include gas procurement costs, demand growth (especially industrial/commercial consumption), regulatory/tariff policies at local levels, the pace of customer connection growth, and the capital intensity and utilization of distribution infrastructure. Specific partnership details are null.

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	Mar 2025	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	79.26B	81.41B	88.23B	69.98B	59.54B
Gross Profit	11.26B	11.30B	15.74B	18.10B	17.10B
EBITDA	10.00B	8.50B	12.39B	14.89B	14.44B
Net Income	3.25B	3.18B	7.66B	10.48B	9.19B
Balance Sheet
Total Assets	148.22B	148.70B	163.15B	140.72B	112.10B
Cash, Cash Equivalents and Short-Term Investments	8.89B	8.12B	10.29B	9.26B	7.66B
Total Debt	60.42B	59.24B	57.70B	50.70B	39.92B
Total Liabilities	87.49B	87.95B	91.08B	80.86B	66.30B
Stockholders Equity	53.86B	53.93B	63.58B	51.94B	39.60B
Cash Flow
Free Cash Flow	1.77B	5.28B	-673.72M	-1.12B	-2.16B
Operating Cash Flow	6.44B	11.34B	8.34B	7.23B	4.97B
Investing Cash Flow	-1.78B	-7.05B	-15.86B	-8.89B	-9.41B
Financing Cash Flow	-3.81B	-5.86B	8.78B	2.57B	-883.00M

China Gas Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 24.77 is below the 20-day moving average (MA) of 25.67, below the 50-day MA of 25.22, and below the 200-day MA of 24.81, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 17.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGHLY.

China Gas Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGS	71 Outperform	$5.45B	17.59	8.51%	3.45%	15.06%	12.27%
SWX	70 Outperform	$6.31B	21.17	11.62%	3.07%	-23.15%	157.45%
SR	67 Neutral	$5.43B	12.84	8.27%	3.82%	-4.50%	2.49%
NJR	66 Neutral	$5.47B	9.48	13.39%	4.01%	13.94%	13.93%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
UGI	65 Neutral	$7.80B	6.77	12.21%	3.92%	1.10%	140.04%
CGHLY	64 Neutral	$5.37B	7.78	5.14%	5.85%	-2.02%	-9.40%