JY Gas Ltd. (1407) AI Stock Analysis

• Market Cap: HK$255.65M
• Dividend Yield: 6.17%
• Average Volume (3M): 338.00K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.13
• Revenue Growth: -9.28%
• EPS Growth: 32.05%
• Country: HK
• Employees: 154
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.03
• Shares Outstanding: 440,000,000
• 10 Day Avg. Volume: 136,600
• 30 Day Avg. Volume: 338,000
• PEG Ratio: 0.25
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 13.50
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: HK$0.50 ▼(-16.67% Downside)

JY Gas Ltd. has a balanced overall stock score driven by its strong valuation and stable financial management. However, the lack of revenue growth and inconsistent cash flow generation are significant concerns. Technical analysis indicates a neutral market sentiment, which tempers the overall outlook.

Positive Factors

Strong Equity Position

A strong equity position with prudent debt management indicates financial stability, providing a solid foundation for long-term operations and potential growth.

Stable Net Profit Margin

Resilient net profit margins suggest effective cost control and operational efficiency, supporting sustainable profitability even amidst revenue challenges.

Long-term Supply Contracts

Long-term supply contracts provide a steady income flow, enhancing revenue predictability and reducing exposure to market volatility.

Negative Factors

Declining Revenue

Declining revenue poses a risk to growth prospects and may impact the company's ability to invest in future opportunities and maintain competitive positioning.

Inconsistent Cash Flow

Inconsistent cash flow generation can lead to liquidity risks, limiting the company's ability to meet obligations and fund strategic initiatives.

Asset Base Reduction

A declining asset base may indicate underinvestment or asset divestiture, potentially affecting operational capacity and long-term growth potential.

JY Gas Ltd. Business Overview & Revenue Model

Company Description

Jy Gas Limited, an investment holding company, together with its subsidiaries, engages in the sale of natural gas in the People's Republic of China. It primarily sells piped, compressed, and liquefied natural gas. The company also engages in the construction and installation of piped natural gas (PNG) end user pipeline network to property developers, and residential and non-residential PNG end-users. In addition, it sells gas-burning appliances, such as gas stoves, wall-hung gas boilers, and water heaters to property owners and occupiers. The company was founded in 2003 and is headquartered in Gaomi, the People's Republic of China.

How the Company Makes Money

JY Gas Ltd. generates revenue primarily through the sale of natural gas to residential, commercial, and industrial customers. The company earns significant income from long-term contracts with utility companies and large-scale industrial users, ensuring a steady demand for its products. Additionally, JY Gas Ltd. benefits from partnerships with local governments and energy regulators, which may provide subsidies or incentives for clean energy initiatives. The company also engages in exploratory activities, seeking new gas reserves that can enhance its production capacity and market competitiveness, contributing further to its revenue streams.

JY Gas Ltd. Financial Statement Overview

Summary

JY Gas Ltd. shows a mixed financial performance. The company has a strong equity position and prudent debt management. However, challenges in revenue growth and inconsistent cash flow generation pose risks. The income statement reflects resilience in profitability, but declining revenue and asset base need attention.

Income Statement

JY Gas Ltd. has demonstrated a mixed performance in its income statement. The gross profit margin has seen a decline from previous years, indicating increased cost pressures. However, the net profit margin has shown resilience, driven largely by effective cost management and stable EBIT margins. Revenue growth has been inconsistent, with a notable decline in the most recent year, impacting overall revenue trajectory.

Balance Sheet

The balance sheet of JY Gas Ltd. reflects a strong equity position with a healthy debt-to-equity ratio, indicating prudent financial management. The company has maintained a solid equity ratio, underscoring its financial stability. However, the significant reduction in total assets over the years raises concerns about asset management and growth potential.

Cash Flow

Cash flow analysis reveals challenges for JY Gas Ltd., particularly in generating consistent operating cash flows. The absence of reported operating and free cash flows in the latest year is concerning. Historically, the free cash flow growth rate has been volatile, and the company's ability to convert net income into cash flows has been inconsistent, suggesting potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	356.98M	370.42M	403.49M	475.53M	440.89M	347.94M
Gross Profit	54.11M	53.59M	60.36M	100.67M	97.22M	98.03M
EBITDA	50.87M	50.40M	48.49M	83.85M	104.98M	93.59M
Net Income	27.87M	30.02M	24.54M	50.80M	67.50M	50.08M
Balance Sheet
Total Assets	577.01M	588.58M	549.29M	501.37M	318.21M	559.22M
Cash, Cash Equivalents and Short-Term Investments	219.84M	224.16M	136.99M	173.02M	37.37M	39.58M
Total Debt	71.03M	62.09M	42.13M	20.48M	39.85M	230.06M
Total Liabilities	264.89M	274.64M	252.52M	212.17M	209.00M	413.83M
Stockholders Equity	295.86M	297.98M	281.01M	274.12M	94.42M	131.46M
Cash Flow
Free Cash Flow	13.16M	12.24M	28.68M	25.70M	18.03M	122.22M
Operating Cash Flow	21.02M	34.39M	48.60M	55.50M	39.90M	136.46M
Investing Cash Flow	2.33M	58.34M	-96.78M	-29.81M	186.27M	320.23M
Financing Cash Flow	-25.09M	3.54M	1.04M	97.72M	-228.37M	-443.40M

JY Gas Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 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:1407, the sentiment is Neutral. The current price of 0.6 is above the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.61, and above the 200-day MA of 0.50, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1407.

JY Gas Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1940	71 Outperform	HK$1.06B	6.40	9.25%	―	-3.67%	38.19%
1407	67 Neutral	HK$255.65M	8.77	9.58%	6.17%	-9.28%	32.05%
9908	66 Neutral	HK$1.13B	6.01	15.50%	5.30%	3.23%	2.73%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
1600	59 Neutral	HK$2.96B	9.34	4.88%	5.22%	7.55%	-32.06%
1265	49 Neutral	HK$327.40M	-5.74	-3.93%	―	-11.37%	65.17%
6828	48 Neutral	HK$773.03M	8.95	6.00%	―	4.42%	-24.00%

JY Gas Ltd. Corporate Events

JY Gas Limited Announces Change of Registered Office

JY Gas Limited, a company incorporated in the Cayman Islands, has announced a change in its registered office and principal share registrar and transfer office, effective from April 1, 2025. The new address is located at Palm Grove Unit 4, 265 Smith Road, George Town, Grand Cayman. This change is part of the company’s administrative updates, while its branch share registrar in Hong Kong remains the same.