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Towngas China Co Ltd (HK:1083)
:1083
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Towngas China Co (1083) AI Stock Analysis

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HK:1083

Towngas China Co

(1083)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
HK$4.00
▲(1.52% Upside)
Towngas China Co's overall stock score is driven by strong financial performance in revenue growth and operational efficiency, despite challenges in cash flow and net profitability. The stock's valuation is attractive, with a low P/E ratio and reasonable dividend yield. Technical analysis indicates neutral market momentum, reflecting balanced investor sentiment.
Positive Factors
Revenue Growth
Consistent revenue growth indicates expanding market reach and effective business strategies, supporting long-term financial stability.
Operational Efficiency
Improved margins reflect effective cost management and operational efficiency, enhancing profitability and competitive positioning.
Market Position
Strong market position in the regulated gas industry provides a stable revenue base and opportunities for growth in a vital sector.
Negative Factors
Cash Flow Challenges
Persistent negative cash flow can hinder financial flexibility and limit the company's ability to invest in growth opportunities.
Net Profit Margin Decline
A declining net profit margin indicates potential issues in cost control or pricing power, affecting overall profitability.
Financial Flexibility Risks
Moderate leverage may constrain financial flexibility, impacting the company's ability to respond to market changes or invest in new projects.

Towngas China Co (1083) vs. iShares MSCI Hong Kong ETF (EWH)

Towngas China Co Business Overview & Revenue Model

Company DescriptionTowngas Smart Energy Company Limited, an investment holding company, sells and distributes piped gas in the People's Republic of China. The company operates through two segments, Sales and Distribution of Piped Gas and Related Products, and Gas Connection. It engages in the provision of natural gas and related services; construction of gas pipelines; operation of urban pipeline gas network; sale of gas related household appliances; and other value-added services. The company also offers financing services; provides engineering works services; and operates vehicle gas refilling stations, as well as smart energy solutions. It serves approximately 15.09 million customers. The company was formerly known as Towngas China Company Limited and changed its name to Towngas Smart Energy Company Limited in December 2021. The company was founded in 1998 and is headquartered in North Point, Hong Kong. Towngas Smart Energy Company Limited is a subsidiary of The Hong Kong and China Gas Company Limited.
How the Company Makes MoneyTowngas China Co generates revenue primarily through the distribution of natural gas to its customers. The company earns income from the sale of natural gas to residential, commercial, and industrial sectors, which constitutes its main revenue stream. Additionally, Towngas benefits from ancillary services such as the sale of gas appliances, equipment installation, and maintenance services. The company has established significant partnerships with local governments and enterprises, which enhance its market presence and operational efficiency. Furthermore, Towngas invests in infrastructure development to expand its network, thereby increasing its customer base and revenue potential. Overall, the combination of gas sales and supplemental services forms a robust revenue model for Towngas China Co.

Towngas China Co Financial Statement Overview

Summary
Towngas China Co shows strong revenue growth and operational efficiency with improved gross and EBIT margins. However, challenges in net profitability and negative free cash flow indicate financial risks. The balance sheet is stable but could benefit from better cash flow management.
Income Statement
75
Positive
Towngas China Co has demonstrated strong revenue growth, with total revenue increasing by 7.4% from 2023 to 2024. The gross profit margin improved to 25.65% in 2024, indicating effective cost management. However, the net profit margin slightly decreased to 7.54%, suggesting some challenges in maintaining profitability at the net level. The EBIT margin increased to 18.98%, highlighting operational efficiency improvements.
Balance Sheet
68
Positive
The company's debt-to-equity ratio stands at 0.75, reflecting a moderate level of leverage. The equity ratio is 44.21%, indicating a solid equity base relative to total assets. Return on equity is at 6.85%, showing a modest return for shareholders. Overall, the balance sheet is stable but shows room for improvement in leveraging equity more effectively.
Cash Flow
40
Negative
The cash flow analysis reveals challenges, with free cash flow remaining negative in recent years. The lack of operating cash flow data for 2024 prevents a detailed analysis, but the consistent negative free cash flow indicates issues in cash generation and capital management. This poses a risk to financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.25B21.31B19.84B20.07B17.13B12.83B
Gross Profit5.38B5.47B4.72B2.32B2.72B2.32B
EBITDA2.80B2.91B2.73B2.53B2.73B2.69B
Net Income1.62B1.61B1.57B964.86M1.25B1.45B
Balance Sheet
Total Assets55.24B53.04B53.46B52.94B54.24B42.89B
Cash, Cash Equivalents and Short-Term Investments3.33B2.73B4.11B4.08B4.08B2.34B
Total Debt18.38B17.47B18.56B19.83B19.54B11.58B
Total Liabilities28.59B27.28B28.23B29.08B29.06B20.24B
Stockholders Equity24.21B23.45B22.85B21.50B22.90B20.72B
Cash Flow
Free Cash Flow-586.24M-1.49B-3.42B-1.57B-177.88M343.03M
Operating Cash Flow2.63B2.35B1.30B1.80B2.61B2.71B
Investing Cash Flow-2.46B-2.77B635.96M-3.57B-8.14B-2.95B
Financing Cash Flow-1.09B-862.84M-1.75B2.04B7.31B463.39M

Towngas China Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.94
Price Trends
50DMA
3.86
Positive
100DMA
3.93
Positive
200DMA
3.54
Positive
Market Momentum
MACD
0.02
Negative
RSI
58.46
Neutral
STOCH
70.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1083, the sentiment is Positive. The current price of 3.94 is above the 20-day moving average (MA) of 3.86, above the 50-day MA of 3.86, and above the 200-day MA of 3.54, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1083.

Towngas China Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$75.73B11.8413.36%4.37%-3.19%-2.68%
68
Neutral
$47.59B15.747.17%4.49%-4.37%-41.14%
66
Neutral
HK$46.53B14.146.04%5.85%-2.64%1.97%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
66
Neutral
HK$19.48B23.665.32%1.03%-6.02%
61
Neutral
$14.13B8.246.98%1.27%3.86%30.34%
48
Neutral
€8.52B55.862.04%0.68%-7.82%-38.06%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1083
Towngas China Co
3.94
0.99
33.74%
HK:0384
China Gas Holdings
8.54
2.06
31.89%
HK:1193
China Resources Gas Group
22.28
-7.06
-24.06%
HK:2688
ENN Energy Holdings
68.70
15.28
28.59%
HK:3633
Zhongyu Gas Holdings Limited
2.96
-1.50
-33.60%
HK:1635
Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H
3.83
1.58
70.37%

Towngas China Co Corporate Events

Towngas Smart Energy Adjusts Convertible Bond Conversion Price
Oct 17, 2025

Towngas Smart Energy Company Limited announced an adjustment to the conversion price of its convertible bonds due to the issuance of scrip shares under a dividend scheme. This adjustment slightly decreases the conversion price, allowing for an increase in the maximum number of shares issued upon full conversion of the bonds. The company plans to apply for the listing of these additional shares on the Stock Exchange, maintaining its strategic financial flexibility and shareholder engagement.

The most recent analyst rating on (HK:1083) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Towngas China Co stock, see the HK:1083 Stock Forecast page.

Towngas Smart Energy Announces Interim Dividend with Scrip Option
Sep 11, 2025

Towngas Smart Energy Company Limited announced an interim cash dividend of HKD 0.05 per share for the six months ending June 30, 2025, with a scrip option available at HKD 3.998 per share. This update provides shareholders with flexibility in dividend receipt and may impact the company’s cash flow and shareholder satisfaction.

The most recent analyst rating on (HK:1083) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Towngas China Co stock, see the HK:1083 Stock Forecast page.

Towngas Smart Energy Announces Board Composition and Committee Structure
Aug 29, 2025

Towngas Smart Energy Company Limited has announced the composition of its board of directors and the roles of its members. The board includes non-executive, independent non-executive, and executive directors, with Dr. the Hon. Lee Ka-kit serving as Chairman and Mr. Peter Wong Wai-yee as the CEO. The company has also established four committees: the Board Audit and Risk Committee, Remuneration Committee, Nomination Committee, and Environmental, Social and Governance Committee, each with designated members to oversee various aspects of the company’s governance and operations. This announcement highlights the company’s structured approach to governance and its commitment to maintaining robust oversight in its operations, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:1083) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Towngas China Co stock, see the HK:1083 Stock Forecast page.

Towngas China Co Announces Leadership Transition in Gas Business
Aug 29, 2025

Towngas China Co announced a significant leadership change effective September 1, 2025, with the resignation of Mr. Martin Kee Wai-ngai from his role as Executive Director and Chief Operating Officer – Gas Business. Mr. Zhou Heng-xiang has been appointed as the new Executive Director and Chief Operating Officer – Mainland Gas Business. This transition is expected to influence the company’s strategic direction, particularly in enhancing its gas resources segment and expanding its market reach.

The most recent analyst rating on (HK:1083) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Towngas China Co stock, see the HK:1083 Stock Forecast page.

Towngas China Co Reports Steady Growth Amid Challenges
Aug 16, 2025

Towngas China Co, a prominent player in the energy sector, specializes in the distribution of piped gas and renewable energy solutions, with a strong focus on enhancing efficiency and reducing carbon emissions.

Towngas Smart Energy Declares Interim Dividend with Scrip Option
Aug 15, 2025

Towngas Smart Energy Company Limited has announced an interim dividend of HKD 0.05 per share for the six months ending June 30, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and may enhance its attractiveness to investors seeking regular income. The dividend can be received in cash or through a scrip option, with further details on conversion rates and dealing dates to be announced. This strategic financial decision underscores the company’s stable financial performance and its focus on maintaining shareholder satisfaction.

The most recent analyst rating on (HK:1083) stock is a Buy with a HK$3.45 price target. To see the full list of analyst forecasts on Towngas China Co stock, see the HK:1083 Stock Forecast page.

Towngas China Co Reports Growth in Renewable Energy and City-Gas Sectors
Aug 15, 2025

Towngas China Co reported a 2% increase in core operating profit to HK$719 million for the first half of 2025, driven by growth in its renewable energy and city-gas sectors. The company declared its first-ever interim dividend of HK5 cents per share, reflecting its strong financial performance and commitment to shareholders. The renewable energy business saw a 5% rise in net profit, with significant advancements in photovoltaic and energy storage capacities. Despite challenges in the city-gas sector due to a mild winter and macroeconomic factors, the company maintained stable gas sales and increased its customer base. The successful issuance of the ‘Smart Zero Carbon Phase 2’ quasi-REIT further enhanced its financial position, supporting continued investment in renewable projects.

The most recent analyst rating on (HK:1083) stock is a Buy with a HK$3.45 price target. To see the full list of analyst forecasts on Towngas China Co stock, see the HK:1083 Stock Forecast page.

Towngas Smart Energy Schedules Board Meeting for Interim Results
Aug 5, 2025

Towngas Smart Energy Company Limited has announced a board meeting scheduled for August 15, 2025, to approve and publish its unaudited consolidated interim results for the first half of 2025. The meeting will also consider the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:1083) stock is a Buy with a HK$3.45 price target. To see the full list of analyst forecasts on Towngas China Co stock, see the HK:1083 Stock Forecast page.

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.Date of analysis: Oct 14, 2025