China Resources Gas Group (1193) AI Stock Analysis

• Market Cap: $47.59B
• Dividend Yield: 4.34%
• Average Volume (3M): 4.50M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.55
• Revenue Growth: -4.37%
• EPS Growth: -41.14%
• Country: HK
• Employees: 57,522
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 1.05
• Shares Outstanding: 2,314,013,000
• 10 Day Avg. Volume: 4,087,010
• 30 Day Avg. Volume: 4,501,299
• PEG Ratio: -0.78
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 24.87
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 4.95
• Enterprise Value/Ebitda: 9.61
• 1Y Price Target: $23.19
• Price Target Upside: 0.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: HK$25.00 ▲(8.51% Upside)

The stock's strong technical momentum and reasonable valuation are the most significant factors driving the score. Financial performance is solid but faces challenges with profitability and cash flow volatility, which slightly dampens the overall score.

Positive Factors

Market Position

As a leading natural gas provider, the company benefits from strong market positioning, enabling it to capitalize on China's growing energy needs.

Revenue Sources

Diverse revenue streams, including gas distribution and renewable projects, provide stability and growth opportunities amid energy transition.

Balance Sheet Health

A moderate debt-to-equity ratio indicates a stable financial foundation, supporting long-term investment and operational flexibility.

Negative Factors

Profitability Pressure

Declining net profit margins suggest challenges in maintaining profitability, potentially affecting future earnings and investment capacity.

Cash Flow Volatility

Volatile cash flows pose risks to liquidity and may hinder the company's ability to fund operations and growth initiatives sustainably.

Earnings Growth Decline

A sharp decline in EPS growth reflects challenges in generating shareholder value, potentially impacting investor confidence and stock performance.

China Resources Gas Group Business Overview & Revenue Model

Company Description

China Resources Gas Group Limited, an investment holding company, engages in the sale of liquefied gas and connection of gas pipelines. The company operates through Sale and Distribution of Gas Fuel and Related Products, Gas Connection, Sale of Gas Appliances, Design and Construction Services, and Gas Stations segments. The Sale and Distribution of Gas Fuel and Related Products segment sells natural gas and liquefied petroleum gas for residential, commercial, and industrial use. The Gas Connection segment engages in the construction of gas pipeline networks under gas connection contracts. The Sale of Gas Appliances segment sells gas appliances and related products. The Design and Construction Services segment provides design, construction, consultancy, and management services for gas connection projects. The Gas Stations segment sells gas fuel in natural gas filling stations. As of December 31, 2021, it operated 266 city gas projects in 22 provinces in the People's Republic of China. The company is headquartered in Wan Chai, Hong Kong. China Resources Gas Group Limited is a subsidiary of China Resources (Holdings) Company Limited.

How the Company Makes Money

China Resources Gas Group generates revenue primarily through the distribution of natural gas to residential, commercial, and industrial customers. The company earns income from the sale of natural gas, which is typically billed based on consumption. Additionally, it receives revenue from pipeline construction and maintenance services, as well as from connection fees when new customers are linked to the gas supply network. Key partnerships with local governments and municipalities facilitate expansion into new regions, while regulatory frameworks support the company's growth in the natural gas sector. The company also benefits from rising demand for cleaner energy solutions as China transitions to reduce carbon emissions, which enhances its revenue potential from new projects and services in renewable energy.

China Resources Gas Group Financial Statement Overview

Summary

China Resources Gas Group shows solid revenue growth and operational efficiency, but profitability is under pressure with declining net profit margins. The balance sheet is strong with manageable leverage, although cash flows are inconsistent, posing a risk to liquidity.

Income Statement

The company exhibits solid revenue growth over the years, with a 9.2% increase from 2022 to 2023. The gross profit margin remains healthy, although there was a slight decline from 18.2% in 2023 to 17.8% in 2024. The net profit margin decreased from 5.2% to 4.0% year over year, indicating pressure on profitability. EBIT and EBITDA margins are stable, highlighting effective operational management.

Balance Sheet

The balance sheet is strong with a moderate debt-to-equity ratio of 0.57, reflecting a stable capital structure. The equity ratio is 31.1%, slightly lower compared to the previous year, suggesting a slight increase in leverage. Return on equity decreased from 12.8% in 2023 to 9.9% in 2024, indicating reduced efficiency in utilizing shareholder equity.

Cash Flow

Cash flow metrics show volatility with a significant drop in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is unavailable for 2024 due to missing data, but cash flows have generally shown inconsistencies, which poses a risk to liquidity and future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.39B	102.68B	101.27B	94.34B	79.64B	55.86B
Gross Profit	17.11B	18.26B	18.45B	17.97B	19.10B	14.96B
EBITDA	8.81B	10.17B	13.24B	12.02B	13.14B	10.64B
Net Income	3.03B	4.09B	5.22B	4.73B	6.40B	5.15B
Balance Sheet
Total Assets	138.49B	132.48B	137.87B	112.05B	106.14B	93.87B
Cash, Cash Equivalents and Short-Term Investments	11.24B	7.53B	10.81B	6.44B	10.09B	13.45B
Total Debt	26.71B	23.52B	27.12B	22.97B	12.01B	11.51B
Total Liabilities	71.28B	68.51B	74.49B	59.76B	52.10B	47.00B
Stockholders Equity	43.39B	41.17B	40.77B	39.33B	41.26B	36.27B
Cash Flow
Free Cash Flow	1.50B	2.80B	4.51B	-2.14B	2.85B	4.24B
Operating Cash Flow	5.89B	7.00B	10.16B	4.28B	8.80B	8.95B
Investing Cash Flow	-1.38B	-2.23B	-4.53B	-15.13B	-11.14B	-7.20B
Financing Cash Flow	-5.71B	-7.43B	-1.96B	7.62B	-3.35B	-2.10B

China Resources Gas Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1193, the sentiment is Positive. The current price of 23.04 is above the 20-day moving average (MA) of 22.26, above the 50-day MA of 21.49, and above the 200-day MA of 21.35, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 60.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1193.

China Resources Gas Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2688	76 Outperform	$75.73B	11.84	13.36%	4.10%	-3.19%	-2.68%
1193	75 Outperform	$47.59B	15.74	7.17%	4.34%	-4.37%	-41.14%
0384	66 Neutral	$47.34B	14.39	4.98%	6.33%	-2.28%	-9.61%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
1083	61 Neutral	$14.20B	8.29	6.98%	6.03%	3.86%	30.34%
1600	59 Neutral	HK$2.95B	9.31	4.88%	5.23%	7.55%	-32.06%
3633	48 Neutral	€8.52B	55.86	2.04%	0.71%	-7.82%	-38.06%

China Resources Gas Group Corporate Events

China Resources Gas Group Proposes Domicile Change to Hong Kong

China Resources Gas Group has announced a proposed change of domicile from Bermuda to Hong Kong, aligning with the Companies (Amendment) (No. 2) Ordinance 2025. This move is intended to streamline operations under Hong Kong laws without affecting the company’s assets, management, or shareholder interests. The company also plans to adopt new Articles of Association in compliance with Hong Kong laws. The proposed changes are subject to shareholder approval and will not impact the company’s listing status or business continuity.

China Resources Gas Group Appoints New Non-Executive Director

China Resources Gas Group Limited has appointed Mr. Zhang Shenwen as a non-executive director and a member of its audit and risk management committee, effective October 28, 2025. Mr. Zhang, who has extensive experience in corporate management and investment, has been with China Resources Group since 1994 and held various leadership roles. His appointment is expected to strengthen the company’s governance and strategic oversight.

China Resources Gas Group Announces Board Composition

China Resources Gas Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement reflects the company’s commitment to strong governance and strategic oversight, which is crucial for maintaining its position in the competitive energy market. The board includes a mix of executive, non-executive, and independent non-executive directors, ensuring a diverse range of expertise and perspectives to guide the company’s future operations.

Chongqing Gas Reports Decline in Net Profit for Nine Months Ending September 2025

Chongqing Gas, a subsidiary of China Resources Gas Group, reported its unaudited financial results for the nine months ending September 30, 2025. The company saw a slight increase in revenue to RMB 7.38 billion, but experienced a significant drop in net profit to RMB 162 million compared to the previous year. Additionally, there was a notable decrease in cash and cash equivalents, highlighting potential liquidity challenges. The financial results, prepared under PRC GAAP, have not been audited and may be subject to adjustments, indicating that stakeholders should interpret the data with caution.

China Resources Gas Group Appoints New Executive Director

China Resources Gas Group Limited has appointed Mr. Liu Haiyan as an executive director effective September 15, 2025. Mr. Liu brings extensive experience in corporate governance, human resources, and risk management from his previous roles at China Resources (Holdings) Company Limited and other firms. His appointment is expected to strengthen the company’s leadership team, although he will not receive a director’s fee and has no fixed term of service. This strategic move could enhance the company’s operational efficiency and governance.

China Resources Gas Group Announces Board Composition and Roles

China Resources Gas Group Limited has announced the composition of its board of directors, detailing the roles and committee memberships of each member. This announcement is significant as it outlines the leadership structure and governance framework of the company, which could influence its strategic direction and operational efficiency.