China Oil & Gas Group (0603) AI Stock Analysis

• Market Cap: $765.41M
• Dividend Yield: N/A
• Average Volume (3M): 703.15K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.30
• Revenue Growth: -4.71%
• EPS Growth: N/A
• Country: HK
• Employees: 4,814
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.02
• Shares Outstanding: 5,636,803,700
• 10 Day Avg. Volume: 536,806
• 30 Day Avg. Volume: 703,149
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 11.23
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 4.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

China Oil & Gas Group's overall stock score is driven by a solid valuation with a low P/E ratio indicating potential undervaluation. The technical analysis suggests moderate bullish momentum. Financial performance is mixed, with stable margins but fluctuating cash flows and net income, indicating potential risk if cash flow issues persist.

China Oil & Gas Group Business Overview & Revenue Model

Company Description

China Oil And Gas Group Limited, an investment holding company, primarily invests in natural gas and energy related businesses in the People's Republic of China and Canada. The company operates through four segments: Sales and Distribution of Natural Gas and Other Related Products; Gas Pipeline Construction and Connection; Exploitation and Production of Crude Oil and Natural Gas; and Production and Sales of Coal Gasification and Other Related Products. It is involved in the piped city gas business, as well as design and construction of gas pipelines; and the transportation, distribution, and sale of compressed natural gas and liquefied natural gas. The company also develops, produces, and sells crude oil and natural gas, and other upstream energy resources; constructs and operates gas pipelines and natural gas stations; and provision for finance, as well as involved in the trading of natural gas and related equipment. In addition, it operates natural gas stations for automobiles. The company serves approximately 1,765,241 residential users; and 15,602 industrial and commercial users. China Oil And Gas Group Limited is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

China Oil & Gas Group makes money through several key revenue streams. The primary source of revenue is the sale and distribution of natural gas, which includes both pipeline gas and liquefied natural gas (LNG) to residential, commercial, and industrial customers. The company also generates income from its exploration and production activities, where it extracts and sells crude oil and natural gas from its operated fields. Additionally, the company operates various gas stations that contribute to its revenue through the sale of fuel and related services. Strategic partnerships with other energy firms and government entities also play a significant role in expanding the company's market reach and enhancing its operational capabilities, further boosting its financial performance.

China Oil & Gas Group Financial Statement Overview

Summary

China Oil & Gas Group shows a mixed financial performance with stable margins but fluctuating net income and cash flows. The balance sheet reflects moderate financial health with manageable debt. However, erratic cash flows and declining equity ratio highlight challenges in maintaining financial stability.

Income Statement

The company has shown fluctuating revenue with a recent decline from 2023 to 2024. Gross profit margin remains relatively stable. The net profit margin improved in 2024 after a negative margin in 2023, indicating recovery. Overall, EBIT and EBITDA margins are consistent but show some volatility, reflecting challenges in maintaining stable profitability.

Balance Sheet

The balance sheet indicates moderate financial health with a stable equity base. The debt-to-equity ratio is moderate, suggesting manageable leverage. However, equity ratio has been declining, indicating increased reliance on debt. Return on equity has been inconsistent, highlighting fluctuations in profitability relative to shareholder equity.

Cash Flow

Cash flows have been erratic, with operating cash flow turning to zero in 2024. Free cash flow showed positive growth in prior years but was not available in the latest year, indicating potential cash management issues. Historical data show adequate free cash flow generation relative to net income, but recent figures are concerning.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.66B	18.53B	17.42B	14.34B	10.43B
Gross Profit	2.18B	1.97B	2.24B	2.13B	1.65B
EBITDA	2.20B	1.84B	2.74B	2.92B	1.39B
Net Income	180.77M	-232.50M	730.14M	904.18M	28.76M
Balance Sheet
Total Assets	20.70B	20.84B	22.95B	22.65B	19.27B
Cash, Cash Equivalents and Short-Term Investments	4.35B	3.25B	3.95B	3.77B	3.76B
Total Debt	8.58B	7.81B	8.45B	8.79B	7.83B
Total Liabilities	13.48B	13.28B	13.97B	13.83B	11.92B
Stockholders Equity	3.66B	3.82B	4.97B	4.79B	3.78B
Cash Flow
Free Cash Flow	1.17B	682.87M	1.26B	324.29M	598.14M
Operating Cash Flow	1.98B	1.63B	2.76B	1.92B	1.62B
Investing Cash Flow	-1.38B	-1.40B	-994.19M	-2.84B	-1.89B
Financing Cash Flow	-53.18M	-1.41B	-1.01B	685.36M	528.08M

China Oil & Gas Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0603, the sentiment is Positive. The current price of 0.16 is below the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 80.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0603.

China Oil & Gas Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0603	71 Outperform	$765.41M	4.50	4.81%	―	-4.71%	―
Sector *	66 Neutral	$14.70B	8.63	5.93%	5.56%	4.06%	-72.72%
0931	46 Neutral	HK$1.86B	―	-80.73%	―	57.62%	32.20%
K20A	―	€38.55M	―	-7.06%	―	―	―
2337	66 Neutral	HK$666.61M	9.07	13.86%	2.25%	3.42%	70.99%
8270	45 Neutral	HK$111.28M	17.96	-25.40%	―	0.11%	-3203.23%
0332	33 Underperform	HK$137.46M	―	-2465.61%	―	-83.92%	-1032.60%

China Oil & Gas Group Corporate Events

China Oil & Gas Group AGM Resolutions Passed

China Oil & Gas Group Limited announced that all resolutions proposed at its Annual General Meeting on May 30, 2025, were approved. Key resolutions included the re-election of directors, the authorization of directors to fix remuneration, the re-appointment of KPMG as auditor, and granting mandates for share issuance and repurchase. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued operational and strategic initiatives.