China Oil & Gas Group (0603) AI Stock Analysis

• Market Cap: HK$822.10M
• Dividend Yield: N/A
• Average Volume (3M): 7.37M
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.27
• 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: 15,200,068
• 30 Day Avg. Volume: 7,368,094
• 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

• Rating: 72 Outperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 72 reflects a combination of solid technical analysis and attractive valuation. The stock shows positive momentum and appears undervalued with a low P/E ratio. However, mixed financial performance, particularly in cash flow management, tempers the score. The absence of earnings call insights and corporate events does not affect the score due to their exclusion.

China Oil & Gas Group Business Overview & Revenue Model

Company Description

China Oil & Gas Group Limited (0603) is a Hong Kong-based investment holding company primarily engaged in the oil and gas sector. The company is involved in various activities including the exploration, development, and production of oil and gas resources. Additionally, it focuses on the trading of oil and gas products, as well as the provision of related services. Through its subsidiaries, the company operates in both upstream and downstream segments, aiming to capitalize on the growing demand for energy resources both domestically and internationally.

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: Positive
• 100DMA: Positive
• 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 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.30 is Neutral, neither overbought nor oversold. The STOCH value of 79.32 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	―	HK$822.10M	5.92	4.05%	―	-12.48%	―
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
2337	―	HK$674.10M	18.48	7.01%	2.15%	-13.08%	-43.83%
0931	―	HK$5.35B	-45.00	-80.73%	―	57.62%	32.20%
8270	―	HK$107.37M	-2.38	-31.34%	―	-29.86%	-791.02%
0332	―	HK$124.37M	―	-2465.61%	―	-83.92%	-1032.60%

China Oil & Gas Group Corporate Events

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.

China Oil & Gas Group Reports Resilient Interim Results

China Oil & Gas Group Limited, a Bermuda-incorporated company listed on the Hong Kong Stock Exchange, primarily engages in the investment and operation of energy-related businesses across China and Canada, including natural gas distribution, pipeline construction, and oil and gas production.

China Oil & Gas Group Reports Stable Profit Margins Amid User Base Expansion

China Oil & Gas Group Limited reported its interim results for the first half of 2025, showing a stable gross profit margin of 12% and a profit margin increase to 7%. The company added 31,062 new residential users and 541 new industrial and commercial users, despite a decrease in revenue from the previous year. The total comprehensive income for the period was significantly higher compared to the previous year, indicating a positive impact on the company’s financial health.

China Oil & Gas Group Schedules Board Meeting to Review Interim Results

China Oil & Gas Group Limited has announced a board meeting scheduled for August 26, 2025, to review and approve the unaudited interim results for the first half of the year and to discuss the potential declaration of an interim dividend. This meeting is significant as it may influence the company’s financial strategy and shareholder returns, impacting its market positioning and stakeholder interests.