China Oil & Gas Group (0603) AI Stock Analysis

• Market Cap: HK$774.86M
• Dividend Yield: N/A
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.41
• Revenue Growth: -12.48%
• EPS Growth: N/A
• Country: HK
• Employees: 4,814
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.05
• Shares Outstanding: 5,636,803,700
• 10 Day Avg. Volume: 1,280,824
• 30 Day Avg. Volume: 3,797,715
• PEG Ratio: -0.03
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 0.73
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$0.20 ▲(42.86% Upside)

The stock's overall score is driven by a strong valuation, indicating it is undervalued, and positive technical indicators suggesting upward momentum. Financial performance shows recovery in profitability but raises concerns due to erratic cash flows.

Positive Factors

Stable Margins

Stable gross profit margins indicate effective cost management and pricing strategies, which can support long-term profitability despite revenue fluctuations.

Manageable Debt Levels

A moderate debt-to-equity ratio implies financial flexibility, allowing the company to invest in growth opportunities without excessive financial risk.

Diverse Revenue Streams

Diverse revenue streams from upstream and downstream activities provide resilience against market volatility and enhance long-term growth potential.

Negative Factors

Fluctuating Revenue

Fluctuating revenue trends can hinder consistent growth and profitability, posing challenges in strategic planning and investment.

Erratic Cash Flows

Erratic cash flows, especially a drop to zero, raise concerns about liquidity and the ability to fund operations and growth initiatives sustainably.

Declining Equity Ratio

A declining equity ratio suggests growing dependence on debt, which can increase financial risk and limit future borrowing capacity.

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 generates revenue through multiple streams primarily centered around its oil and gas operations. The company earns income from the exploration and production of crude oil and natural gas, selling these resources to various markets. Additionally, the trading of oil and gas products contributes significantly to its revenue, allowing the company to leverage price fluctuations in the energy market. Strategic partnerships with other oil and gas companies and government entities enhance its operational capabilities and market reach. Furthermore, the company may also engage in service contracts related to its operations, further diversifying its income sources.

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 company faces challenges in sustaining revenue and profitability, despite a solid balance sheet with manageable debt levels. Future stability depends on improving cash flows and maintaining profitable growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.31B	17.66B	18.53B	17.30B	14.34B	10.43B
Gross Profit	1.54B	2.18B	1.97B	2.24B	2.13B	1.65B
EBITDA	1.38B	2.20B	1.84B	2.74B	2.92B	1.39B
Net Income	37.25M	180.77M	-232.50M	730.14M	904.18M	28.76M
Balance Sheet
Total Assets	20.50B	20.70B	20.84B	22.95B	22.65B	19.27B
Cash, Cash Equivalents and Short-Term Investments	3.80B	4.35B	3.25B	3.95B	3.77B	3.76B
Total Debt	8.54B	8.58B	7.81B	8.45B	8.79B	7.83B
Total Liabilities	12.85B	13.48B	13.28B	13.97B	13.83B	11.92B
Stockholders Equity	4.17B	3.66B	3.82B	4.22B	4.79B	3.78B
Cash Flow
Free Cash Flow	303.42M	1.24B	682.87M	1.26B	324.29M	598.14M
Operating Cash Flow	669.00M	1.98B	1.63B	2.76B	1.92B	1.62B
Investing Cash Flow	-724.80M	-1.38B	-1.40B	-994.19M	-2.84B	-1.89B
Financing Cash Flow	99.17M	-53.18M	-1.41B	-1.01B	685.36M	528.08M

China Oil & Gas Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 64.29 is Neutral, 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	72 Outperform	HK$774.86M	5.58	4.05%	―	-12.48%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
2337	55 Neutral	HK$629.16M	17.25	7.01%	2.35%	-13.08%	-43.83%
8270	52 Neutral	HK$122.99M	-2.73	-31.34%	―	-29.86%	-791.02%
0931	49 Neutral	HK$3.60B	-26.94	-40.82%	―	23.08%	23.40%
0332	40 Underperform	HK$111.28M	-0.05	―	―	-76.52%	-630.18%

China Oil & Gas Group Corporate Events

China Oil and Gas Group Cuts Outstanding 2026 Notes with US$39 Million Buyback

China Oil and Gas Group Limited has repurchased US$39 million in principal amount of its 4.7% senior notes due 30 June 2026 from the open market and subsequently cancelled them, reducing the outstanding principal on this issue to US$361 million. The move signals ongoing proactive liability management by the company and may help trim future interest costs and strengthen its balance-sheet profile, though management stresses that any further note buybacks will depend on market conditions and will be at the company’s sole discretion, and investors are cautioned that there is no assurance of additional repurchases.

The most recent analyst rating on (HK:0603) stock is a Buy with a HK$0.20 price target. To see the full list of analyst forecasts on China Oil & Gas Group stock, see the HK:0603 Stock Forecast page.

China Oil & Gas Group Announces Strategic Merger and Acquisition Agreement

China Oil & Gas Group Limited has announced a merger and acquisition agreement involving China Oil Investment, Tiandalitong, CCNG, and Shengli Share. The agreement outlines the acquisition of several equity interests, including 100% of China Oil Zhuhai and Tiandashengtong, 51% of Nantong Oil, and 40% of Ganhe China Oil. The transaction will be executed through a combination of share issuance and cash payment, with the share price set at RMB3.07 per share. The newly issued shares will be subject to a 36-month lock-up period, which may extend if certain stock price conditions are met. This strategic move is expected to enhance the company’s asset portfolio and strengthen its competitive positioning in the oil and gas industry.

China Oil & Gas Group Announces Asset Acquisition Intent

China Oil & Gas Group Limited has announced a letter of intent for asset acquisition involving its subsidiaries. Shengli Share intends to acquire equity interests in four target companies through share issuance and cash payment. The transactions are subject to due diligence, internal decision-making, and regulatory approvals. This strategic move could impact the company’s operations and industry positioning by potentially streamlining its asset portfolio.