China LNG Group (0931) AI Stock Analysis

• Market Cap: HK$2.60B
• Dividend Yield: N/A
• Average Volume (3M): 12.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 23.08%
• EPS Growth: 23.40%
• Country: HK
• Employees: 530
• Sector: Energy
• Sector Strength: 52
• Industry: Regulated Gas
• EPS (TTM): -0.01
• Shares Outstanding: 7,435,678,000
• 10 Day Avg. Volume: 16,826,552
• 30 Day Avg. Volume: 12,599,558
• PEG Ratio: 0.44
• Price to Book (P/B): 7.01
• Price to Sales (P/S): 2.22
• P/FCF Ratio: -11.91
• 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: 40 Underperform
• Price Target: HK$0.33 ▼(-30.62% Downside)
• Action: Downgraded Date: 02/11/26
• Date: Action: Downgraded 02/11/26

The score is held down primarily by weak financial performance (ongoing losses, high leverage, and negative operating cash flow). Technicals also point to a downtrend (price below key moving averages and negative MACD), with only oversold indicators offering limited near-term support. Valuation is not supportive due to a negative P/E tied to losses and no stated dividend yield.

Positive Factors

Revenue Growth

Sustained 23.3% revenue growth signals expanding demand or market share in core gas operations. Over a 2–6 month horizon this supports scale benefits, potential margin recovery, and provides a foundation to stabilize operations and improve cash conversion if cost control continues.

Free Cash Flow Improvement

A positive free cash flow to net income ratio and improving free cash flow suggest the company is beginning to convert earnings to cash. If sustained, this improves ability to service debt, fund working capital and invest in operations without relying solely on external financing.

Regulated Industry Position

Operating within the regulated gas sector typically yields more predictable demand, long-term contracts and regulatory oversight. These structural features can provide stable revenue streams and reduce volatility versus nonregulated peers over the medium term.

Negative Factors

Persistent Losses

Ongoing negative net profit and EBIT margins indicate the core business is not yet profitable. Persistent losses erode equity, limit internal funding for capex or maintenance, and require either sustained operational improvement or external financing to remain viable long term.

High Leverage

A debt-to-equity ratio of ~3.13 shows material reliance on debt financing. High leverage increases interest burden and refinancing risk, constrains strategic flexibility, and magnifies downside if margins or cash flows deteriorate, especially amid negative earnings.

Negative Operating Cash Flow

Negative operating cash flow means core operations are not generating sufficient cash to fund day-to-day activities. This necessitates external financing or asset sales, limiting the company's ability to invest, reduce leverage or withstand prolonged market stress without structural turnaround.

China LNG Group Business Overview & Revenue Model

Company Description

China LNG Group Limited, an investment holding company, sells and distributes liquefied natural gas (LNG) in the People's Republic of China and Hong Kong. The company engages in the wholesale and point-to-point supply of LNG; LNG pipeline network; and LNG logistic services. It also provides finance leasing services for LNG vehicles and equipment; and securities brokerage, margin financing, money lending, and asset management services. In addition, the company develops LNG refueling facilities on floating barges; develops LNG related technologies; operates LNG refueling stations; trades in gas ignition equipment; utilizes new energy sources; and supplies and manages LNG. Further, it is involved in the construction and operation of natural gas filling stations; wholesale of ethanol and liquefied petroleum gas; trading of natural gas and transportation; and dealing in securities. The company was formerly known as Artel Solutions Group Holdings Limited and changed its name to China LNG Group Limited in June 2014. China LNG Group Limited was founded in 1995 and is headquartered in Central, Hong Kong.

How the Company Makes Money

China LNG Group generates revenue through multiple streams, primarily from the sale and distribution of LNG to industrial and commercial customers. The company benefits from long-term supply contracts with key partners, ensuring a steady flow of income. Additionally, revenue is derived from the management and operation of LNG terminals and storage facilities, which charge fees for services rendered. Strategic partnerships with energy companies and government entities also enhance its market position and contribute to earnings, as these alliances often lead to favorable contract terms and access to new markets.

China LNG Group Financial Statement Overview

Summary

Despite a 23.3% increase in revenue, profitability remains weak with negative net profit and EBIT margins. High leverage (debt-to-equity 3.13) and negative operating cash flow outweigh the modest improvement in gross margin and free cash flow.

Income Statement

China LNG Group has shown some improvement in revenue growth, with a 23.3% increase in the latest year. However, the company continues to struggle with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has improved slightly, but the overall financial health remains weak due to persistent losses.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio of 3.13, indicating significant reliance on debt financing. The return on equity is negative, reflecting ongoing losses. While the equity ratio is relatively stable, the high debt levels pose a risk to financial stability.

Cash Flow

Cash flow analysis shows a slight improvement in free cash flow growth, but operating cash flow remains negative. The free cash flow to net income ratio is positive, suggesting some ability to cover losses, but the overall cash flow situation is concerning due to negative operating cash flows.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	697.28M	713.44M	454.49M	211.85M	432.55M	775.24M
Gross Profit	40.69M	116.65M	63.65M	-16.10M	-34.13M	50.63M
EBITDA	-13.26M	-37.52M	-62.57M	-75.53M	-110.47M	-15.92M
Net Income	-123.93M	-106.01M	-139.30M	-167.19M	-198.79M	-82.26M
Balance Sheet
Total Assets	1.77B	1.70B	1.56B	1.34B	1.59B	1.60B
Cash, Cash Equivalents and Short-Term Investments	57.91M	37.27M	44.10M	31.77M	26.60M	68.42M
Total Debt	642.75M	705.92M	787.21M	597.36M	642.85M	593.70M
Total Liabilities	1.45B	1.47B	1.50B	1.24B	1.27B	1.15B
Stockholders Equity	314.05M	225.47M	37.17M	64.75M	223.88M	88.06M
Cash Flow
Free Cash Flow	-174.36M	-132.66M	-165.65M	-24.98M	-139.99M	-50.41M
Operating Cash Flow	-87.81M	-54.72M	-113.44M	19.68M	-7.49M	41.28M
Investing Cash Flow	-91.98M	-75.00M	-31.19M	-20.68M	-94.18M	13.66M
Financing Cash Flow	158.72M	121.26M	180.02M	25.78M	35.04M	-40.05M

China LNG Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0931, the sentiment is Negative. The current price of 0.48 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.44, and above the 200-day MA of 0.39, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 32.25 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0931.

China LNG Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0603	72 Outperform	HK$1.30B	1.68	4.05%	―	-12.48%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
2337	55 Neutral	HK$561.75M	-20.66	7.01%	2.35%	-13.08%	-43.83%
8270	55 Neutral	HK$181.56M	-5.13	-31.34%	―	-29.86%	-791.02%
0332	46 Neutral	HK$157.09M	-0.26	―	―	-76.52%	-630.18%
2728	43 Neutral	HK$120.29M	-6.03	-25.25%	―	-0.55%	-340.00%
0931	40 Underperform	HK$2.60B	-10.83	-40.82%	―	23.08%	23.40%

China LNG Group Corporate Events

China HK Power Smart Energy Delays Circular on Director Share Option Grant

China HK Power Smart Energy Group Limited has announced a delay in sending a shareholder circular related to a connected transaction involving the grant of share options to directors under a specific mandate. The circular, originally expected by early March, is now anticipated by 10 April 2026 due to the need for more time by the independent financial adviser to finalise its advice, particularly on performance targets under a supplemental agreement.

The postponement underscores the company’s reliance on independent evaluation for governance of director remuneration and incentive structures. While procedural in nature, the delay may marginally extend the timeline for shareholder review and approval of the option grant, but it also signals an emphasis on thorough assessment of performance-linked conditions tied to management incentives.

The most recent analyst rating on (HK:0931) stock is a Sell with a HK$0.32 price target. To see the full list of analyst forecasts on China LNG Group stock, see the HK:0931 Stock Forecast page.

China HK Power Smart Energy Plans HK$260 Million Loan-for-Equity Swap With Chairman

China HK Power Smart Energy Group Limited plans to issue 722,222,222 new shares at HK$0.36 each to its chairman and controlling shareholder, Dr. Kan, by capitalising a HK$260 million loan owed to him. The new shares will represent about 8.85% of the enlarged share capital, easing the company’s debt burden while slightly diluting existing shareholders.

Because Dr. Kan is a connected person holding about 50.59% of the company, the loan capitalisation is treated as a connected transaction under Hong Kong listing rules and requires independent shareholders’ approval. An independent board committee of non-executive directors has been formed and will appoint an independent financial adviser to assess the fairness of the terms before shareholders vote at an extraordinary general meeting.

The most recent analyst rating on (HK:0931) stock is a Sell with a HK$0.32 price target. To see the full list of analyst forecasts on China LNG Group stock, see the HK:0931 Stock Forecast page.

China HK Power Smart Energy Links Director Options to Profit and Market Cap Targets

China HK Power Smart Energy Group Limited has amended the terms of a previously announced grant of 1 billion share options to director Mr. Deng Yaobo, tying their vesting to clear financial and market performance criteria. The move links management incentives to a turnaround from net loss to sustained profitability and to growth and resilience in the company’s market valuation over a four-year period.

Under the new supplemental agreement, the director options will vest in three tranches between 2028 and 2030 only if the company achieves net profit targets and meets specific market capitalisation benchmarks. By conditioning equity rewards on both earnings improvement and market capitalisation growth or stability, the board is signaling stronger alignment between executive compensation, shareholder value creation, and the company’s long-term performance trajectory.

The most recent analyst rating on (HK:0931) stock is a Sell with a HK$0.38 price target. To see the full list of analyst forecasts on China LNG Group stock, see the HK:0931 Stock Forecast page.

China HK Power Smart Energy Delays Circular on Connected Share Option Grant

China HK Power Smart Energy Group Limited has announced a delay in sending to shareholders a circular relating to a connected transaction involving the grant of share options to directors under a specific mandate. The circular, originally expected by 3 February 2026 and containing detailed information, independent board committee recommendations, and an independent financial adviser’s opinion, is now expected to be dispatched on or before 6 March 2026 due to the need for additional time to finalize certain information, potentially extending the timeline for shareholder consideration and approval of the proposed option grant.

The most recent analyst rating on (HK:0931) stock is a Hold with a HK$0.44 price target. To see the full list of analyst forecasts on China LNG Group stock, see the HK:0931 Stock Forecast page.

China HK Power Smart Energy Grants Share Options Equal to 5.41% of Share Capital

China HK Power Smart Energy Group Limited has granted share options to 57 eligible participants under its existing share option scheme adopted in August 2019, allowing them to subscribe for a total of 402,139,709 new shares, equivalent to about 5.41% of the company’s issued share capital, at an exercise price of HK$0.482 per share. The options will vest over four years with a 10-year validity period, and while they do not carry additional performance targets or clawback mechanisms, the board and its remuneration committee believe that the share price linkage, vesting schedule and employment conditions are sufficient to align the interests of grantees with shareholders, support long-term retention, and incentivise contributions to the group’s future operational performance and growth.

The most recent analyst rating on (HK:0931) stock is a Hold with a HK$0.59 price target. To see the full list of analyst forecasts on China LNG Group stock, see the HK:0931 Stock Forecast page.