Towngas China Co Ltd (HK:1083)
:1083
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Towngas China Co
(1083)
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Rating:55Neutral
Price Target:
HK$3.50
â–¼(-0.28% Downside)
Action:ReiteratedDate:04/24/26
The score is held back primarily by weak financial quality—especially persistent negative free cash flow and softer operating cash flow—alongside a generally weak technical trend (below longer-term moving averages, negative MACD). These risks are partly offset by supportive valuation metrics (low P/E and high dividend yield).
Positive Factors
Regulated recurring revenue model
Towngas China’s core regulated city‑gas distribution creates high revenue predictability and customer stickiness. Long‑lived network assets and contract or tariff frameworks support stable cash flows, facilitating long‑term planning, steady service revenues and barriers to entry for competitors.
Negative Factors
Persistent negative free cash flow
Multi‑year negative free cash flow signals that capital expenditures and working capital needs regularly exceed operating cash generation. Over time this increases reliance on external financing, limits strategic optionality, and constrains the company’s ability to self‑fund growth or buffer against cyclical shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated recurring revenue model
Towngas China’s core regulated city‑gas distribution creates high revenue predictability and customer stickiness. Long‑lived network assets and contract or tariff frameworks support stable cash flows, facilitating long‑term planning, steady service revenues and barriers to entry for competitors.
Read all positive factors
Towngas China Co (1083) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$13.03B
Dividend Yield6.38%
Average Volume (3M)2.27M
Price to Earnings (P/E)8.7
Beta (1Y)0.38
Revenue Growth-1.89%
EPS Growth-5.33%
CountryHK
Employees24,455
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.23
Shares Outstanding3,671,690,200
10 Day Avg. Volume1,755,300
30 Day Avg. Volume2,270,946
Financial Highlights & Ratios
PEG Ratio-2.04
Price to Book (P/B)0.53
Price to Sales (P/S)0.66
P/FCF Ratio-23.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.36Price Target Upside24.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.44
Revenue Forecast (FY)HK$21.37B
Towngas China Co Business Overview & Revenue Model
Company Description
Towngas 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 Co...
How the Company Makes Money
Towngas China primarily makes money by operating city-gas projects and charging customers for gas and related services. Key revenue streams typically include: (1) Gas sales: recurring revenue from selling piped gas to end users (residential househ...
Towngas China Co Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.91B | 21.31B | 19.84B | 20.07B | 17.13B |
| Gross Profit | 2.24B | 5.47B | 4.72B | 2.32B | 2.72B |
| EBITDA | 2.71B | 2.91B | 2.73B | 2.53B | 2.73B |
| Net Income | 1.59B | 1.61B | 1.57B | 964.86M | 1.25B |
Balance Sheet | |||||
| Total Assets | 55.21B | 53.04B | 53.46B | 52.94B | 54.24B |
| Cash, Cash Equivalents and Short-Term Investments | 2.50B | 2.73B | 4.11B | 4.08B | 4.08B |
| Total Debt | 17.31B | 17.47B | 18.56B | 19.83B | 19.54B |
| Total Liabilities | 27.05B | 27.28B | 28.23B | 29.08B | 29.06B |
| Stockholders Equity | 25.72B | 23.45B | 22.85B | 21.50B | 22.90B |
Cash Flow | |||||
| Free Cash Flow | -574.94M | -1.49B | -3.42B | -1.57B | -177.88M |
| Operating Cash Flow | 1.80B | 2.35B | 1.30B | 1.80B | 2.61B |
| Investing Cash Flow | -655.97M | -2.77B | 635.96M | -3.57B | -8.14B |
| Financing Cash Flow | -1.49B | -862.84M | -1.75B | 2.04B | 7.31B |
Towngas China Co Technical Analysis
Neutral
3.51
Price Trends
3.68
Negative
3.72
Negative
3.83
Negative
Market Momentum
-0.05
Negative
47.61
Neutral
88.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1083, the sentiment is Neutral. The current price of 3.51 is above the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.68, and below the 200-day MA of 3.83, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 88.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1083.
Towngas China Co Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$70.85B | 12.01 | 12.60% | 4.30% | 1.89% | -1.58% | |
67 Neutral | HK$42.64B | 14.60 | 8.10% | 4.43% | -4.81% | -14.03% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$135.84B | 23.00 | 9.73% | 4.94% | -2.07% | -0.42% | |
63 Neutral | HK$39.44B | 7.70 | 5.14% | 6.44% | -2.28% | -9.61% | |
55 Neutral | HK$13.03B | 8.67 | 6.35% | 6.38% | -1.89% | -5.33% | |
48 Neutral | HK$7.53B | 1,075.24 | 2.04% | 0.71% | -7.63% | 71.13% |
* Utilities Sector Average
HK:1083
Towngas China Co
3.58
0.31
9.38%
HK:0384
China Gas Holdings
7.35
0.76
11.50%
HK:1193
China Resources Gas Group
18.95
-1.75
-8.47%
HK:0003
Hong Kong & China Gas Co
7.30
0.65
9.84%
HK:2688
ENN Energy Holdings
62.00
3.28
5.59%
HK:3633
Zhongyu Gas Holdings Limited
2.74
-1.53
-35.82%
Towngas China Co Corporate Events
Towngas Smart Energy Sets 2026 AGM, Seeks Share Buyback Mandate
Apr 20, 2026
Towngas Smart Energy Company Limited has called its annual general meeting for 27 May 2026 at the Hong Kong Convention and Exhibition Centre, where shareholders will review the audited financial statements for the year ended 31 December 2025 and c...
Towngas Smart Energy Elevates Independent Director to Lead ESG Committee
Mar 20, 2026
Towngas Smart Energy Company Limited has strengthened its governance structure by redesignating Independent Non-executive Director Dr. Christine Loh Kung-wai as chairman of its Environmental, Social and Governance Committee, effective 20 March 202...
Towngas Smart Energy Aligns Board Structure and Committees for Stronger Governance
Mar 20, 2026
Towngas Smart Energy Company Limited has outlined the composition of its board of directors and clarified the roles of its non-executive, executive, and independent non-executive members, including its chairman, chief executive officer, and chief ...
Towngas Smart Energy Declares 2025 Final Dividend with Scrip Option
Mar 18, 2026
Towngas Smart Energy Company Limited has proposed a final ordinary dividend of HKD 0.14 per share for the financial year ended 31 December 2025, subject to shareholder approval at its meeting on 27 May 2026. The dividend will be payable in cash by...
Towngas Smart Energy to Overhaul Constitutional Documents for Paperless and Treasury Share Flexibility
Mar 18, 2026
Towngas Smart Energy plans to replace its existing memorandum and articles of association with a new set of governing documents to align with recent changes to Hong Kong’s listing rules and Cayman Islands law. The revisions will support an e...
Towngas Smart Energy Sets Up ESG Committee to Bolster Sustainability Oversight
Mar 18, 2026
Towngas Smart Energy Company Limited has established an Environmental, Social and Governance Committee to assist its board in overseeing a wide range of ESG matters, from health and safety and environmental protection to data privacy, cyber securi...
Towngas China Delivers Steady 2025 Results as Renewable Energy and Asset-Light Strategy Gain Traction
Mar 18, 2026
Towngas China reported 2025 revenue of HK$20.91 billion and profit attributable to shareholders of HK$1.59 billion, reflecting steady performance amid macroeconomic and policy headwinds as it advances an asset-light strategy. City-gas volume edged...
Towngas Smart Energy Sets March Board Meeting to Approve 2025 Results
Mar 6, 2026
Towngas Smart Energy Company Limited has scheduled a board meeting for 18 March 2026 to approve the audited consolidated annual results for the year ended 31 December 2025 and to authorize their publication. The board will also consider the declar...
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.