Hong Kong & China Gas Co Ltd (HK:0003)
:0003
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Hong Kong & China Gas Co
(0003)
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Rating:57Neutral
Price Target:
HK$7.50
â–²(2.74% Upside)
Action:Reiterated
Date:05/02/26
Overall score reflects steady financial resilience with improving 2025 free cash flow, tempered by rising leverage and weak growth signals (declining revenue and margin volatility). Technical indicators add a mild headwind due to mixed-to-soft trend signals, while valuation is supported by the dividend but constrained by a ~23x P/E.
Positive Factors
Regulated utility business model
Towngas operates a regulated, networked gas utility in Hong Kong supplying residential, commercial and industrial customers. That asset-backed, monopoly-like model delivers predictable demand and regulated returns, supporting steady cash flows and long-term revenue visibility versus competitive retail businesses.
Negative Factors
Meaningful leverage
Leverage near 1.0 reduces financial flexibility for a utility, increasing interest expense sensitivity and limiting scope for large discretionary investments or faster deleveraging. Higher debt also constrains the balance sheet buffer against regulatory or demand shocks and narrows strategic options.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility business model
Towngas operates a regulated, networked gas utility in Hong Kong supplying residential, commercial and industrial customers. That asset-backed, monopoly-like model delivers predictable demand and regulated returns, supporting steady cash flows and long-term revenue visibility versus competitive retail businesses.
Read all positive factors
Hong Kong & China Gas Co (0003) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$136.96B
Dividend Yield4.94%
Average Volume (3M)22.06M
Price to Earnings (P/E)11.8
Beta (1Y)0.23
Revenue Growth-2.07%
EPS Growth-0.42%
CountryHK
Employees56,401
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.31
Shares Outstanding18,659,870,000
10 Day Avg. Volume25,817,623
30 Day Avg. Volume22,061,121
Financial Highlights & Ratios
PEG Ratio-7.13
Price to Book (P/B)2.20
Price to Sales (P/S)2.41
P/FCF Ratio24.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$7.21Price Target Upside-1.28% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.32
Revenue Forecast (FY)HK$55.96B
Hong Kong & China Gas Co Business Overview & Revenue Model
Company Description
The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas in Hong Kong and Mainland China. It is involved in the provision of liquefied natural gas, methanol, and coal and other chemicals; ...
How the Company Makes Money
In Hong Kong, the company primarily makes money by selling town gas to end users via its regulated utility-style operation. Revenue is generated from metered gas consumption by households, businesses, and industrial users, typically supported by c...
Hong Kong & China Gas Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 54.33B | 55.47B | 56.97B | 60.95B | 53.56B |
| Gross Profit | 12.98B | 23.11B | 21.98B | 14.38B | 14.02B |
| EBITDA | 8.13B | 12.16B | 11.88B | 12.34B | 10.42B |
| Net Income | 5.69B | 5.71B | 6.18B | 5.36B | 5.13B |
Balance Sheet | |||||
| Total Assets | 163.56B | 158.27B | 161.98B | 168.47B | 168.07B |
| Cash, Cash Equivalents and Short-Term Investments | 8.01B | 7.69B | 10.41B | 13.36B | 10.63B |
| Total Debt | 61.00B | 58.81B | 56.91B | 60.44B | 55.92B |
| Total Liabilities | 92.17B | 89.94B | 90.96B | 95.71B | 88.61B |
| Stockholders Equity | 59.35B | 57.39B | 59.85B | 63.61B | 69.81B |
Cash Flow | |||||
| Free Cash Flow | 5.40B | 2.54B | 2.50B | 1.40B | 2.20B |
| Operating Cash Flow | 10.53B | 9.00B | 10.93B | 9.73B | 10.62B |
| Investing Cash Flow | -2.59B | -2.31B | -2.50B | -8.41B | -13.47B |
| Financing Cash Flow | -7.90B | -9.21B | -12.45B | 1.91B | 5.39B |
Hong Kong & China Gas Co Technical Analysis
Positive
7.30
Price Trends
7.29
Positive
7.32
Positive
7.20
Positive
Market Momentum
0.02
Negative
51.48
Neutral
35.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0003, the sentiment is Positive. The current price of 7.3 is below the 20-day moving average (MA) of 7.32, above the 50-day MA of 7.29, and above the 200-day MA of 7.20, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 35.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0003.
Hong Kong & China Gas Co Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$66.11B | 11.71 | 12.60% | 4.30% | 1.89% | -0.52% | |
63 Neutral | HK$40.97B | 7.70 | 5.14% | 6.44% | -2.28% | -9.61% | |
58 Neutral | HK$42.76B | 14.60 | 8.10% | 4.43% | -4.81% | -13.88% | |
57 Neutral | HK$136.96B | 11.84 | 9.73% | 4.94% | -2.07% | -0.42% | |
55 Neutral | HK$12.89B | 4.28 | 6.35% | 6.38% | -1.89% | -5.33% | |
54 Neutral | HK$17.06B | 34.41 | 3.04% | 1.17% | -3.75% | 77.10% |
* Utilities Sector Average
HK:0003
Hong Kong & China Gas Co
7.34
0.71
10.76%
HK:0384
China Gas Holdings
7.52
0.67
9.86%
HK:1193
China Resources Gas Group
18.85
-2.66
-12.38%
HK:1083
Towngas China Co
3.51
0.19
5.72%
HK:2688
ENN Energy Holdings
58.55
-4.13
-6.59%
HK:1635
Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H
3.13
1.19
61.01%
Hong Kong & China Gas Co Corporate Events
Hong Kong and China Gas sets 2026 AGM, seeks renewal of capital mandates
Apr 28, 2026
The Hong Kong and China Gas Company Limited has called its 2026 annual general meeting for 1 June at the Hong Kong Convention and Exhibition Centre, where shareholders will review the audited financial statements for the year ended 31 December 202...
Towngas Updates Board Composition and Governance Committee Structure
Mar 20, 2026
The Hong Kong and China Gas Company Limited has announced the current composition of its board, listing non-executive, independent non-executive and executive directors, including co-chairmen Dr. the Hon. Lee Ka-kit and Dr. Lee Ka-shing, alongside...
Hong Kong and China Gas to Adopt New Articles to Enable Paperless, Virtual Governance
Mar 20, 2026
The Hong Kong and China Gas Company plans to replace its existing Articles of Association with a new set that aligns its corporate governance framework with recent changes in Hong Kong company and listing regulations. The move underscores the comp...
Hong Kong and China Gas Declares Final Dividend for 2025
Mar 20, 2026
The Hong Kong and China Gas Company Limited has declared a final ordinary dividend of HKD 0.23 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars following shareholder approval scheduled for 1 June 2026. The ex-d...
Hong Kong & China Gas lifts core profit as green energy and renewables drive growth
Mar 20, 2026
Hong Kong China Gas Co reported 2025 after‑tax operating profit of HK$7.5 billion and core operating profit of HK$6.0 billion, up 2% and 4% respectively, with profit attributable to shareholders steady at HK$5.7 billion. The Hong Kong gas u...
Hong Kong and China Gas Schedules Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 9, 2026
The Hong Kong and China Gas Company Limited has scheduled a board meeting for 20 March 2026 to approve the audited consolidated annual results for the year ended 31 December 2025 and to authorize their publication. At the same meeting, the board w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.