China Gas Industry Investment Holdings Co.Ltd. (1940) AI Stock Analysis

• Market Cap: HK$1.16B
• Dividend Yield: N/A
• Average Volume (3M): 307.87K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.25
• Revenue Growth: -3.67%
• EPS Growth: 38.19%
• Country: HK
• Employees: 324
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.07
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 233,000
• 30 Day Avg. Volume: 307,866
• PEG Ratio: 0.00
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 22.07
• 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: 66 Neutral
• Price Target: HK$1.00 ▲(11.11% Upside)

The score is driven primarily by moderate financial performance: solid margins and a strong balance sheet are offset by weak 2024 cash flow and a revenue decline. Valuation is supportive due to a low P/E, while technicals are constructive but tempered by an overbought RSI reading.

Positive Factors

Balance Sheet Strength

High equity ratio and low leverage provide durable financial flexibility, supporting capital spending for gas infrastructure and buffering regulatory or demand volatility. This reduces refinancing risk and underpins steady investment in distribution networks over the medium term.

Margin Sustainability

Healthy gross and net margins reflect structural operational efficiency in pipeline and distribution operations. Sustained margins support reinvestment and shareholder returns, helping the firm absorb commodity price swings and maintain profitability through regulated revenue streams.

Strategic Market Position

As a gas infrastructure operator with ties to local governments and energy projects, the company benefits from stable, regulated demand and the long-term shift to cleaner fuels. This entrenched position supports predictable cash flows and steady network expansion over time.

Negative Factors

Recent Revenue Decline

A decline in revenue in 2024 interrupts growth momentum and suggests challenges in customer expansion or pricing. Over a multi-month horizon, a shrinking top line can constrain reinvestment into pipelines and customer connections, pressuring capacity expansion plans.

Cash Flow Weakness

Negative free cash flow and a sharp fall in operating cash flow reduce liquidity to fund capex and network upgrades without raising debt or equity. Sustained cash deficits could force project delays or dependence on external financing, weakening strategic autonomy.

Limited Revenue Growth Track Record

A history of negligible revenue growth indicates a low organic expansion rate despite structural demand. This implies future growth will rely on capital-intensive projects or M&A, increasing execution risk and capital needs that could dilute returns over the medium term.

China Gas Industry Investment Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

China Gas Industry Investment Holdings Co., Ltd., an investment holding company, produces and sells industrial gas in the People's Republic of China. The company provides industrial gas products, which include oxygen, nitrogen, argon, hydrogen and carbon dioxide. It primarily engages in the supply of pipeline industrial gas, as well as liquefied industrial gas (LNG) principally to offsite independent third parties through road tanker delivery; and LNG-related business, which includes the supply of LNG and provision of gas transmission services. In addition, the company operates an automobile LNG filling station; and constructs industrial gas projects. It sells its liquefied industrial gas to customers in a range of industries, including medical, shipping, engineering, photovoltaic, food, and automotive. The company was founded in 2004 and is headquartered in Tangshan, China.

How the Company Makes Money

China Gas Industry Investment Holdings Co.Ltd. generates revenue through several key streams. Primarily, the company earns money from the distribution and sale of natural gas to residential, commercial, and industrial customers. This includes fees from the construction and operation of gas pipelines and distribution facilities. Additionally, the company may engage in investment projects and joint ventures within the energy sector, which can provide significant returns. Partnerships with local governments and energy companies also enhance its market position and revenue potential. Moreover, as energy demand continues to rise, particularly for cleaner alternatives, the company's strategic investments and operational efficiencies contribute to steady revenue growth.

China Gas Industry Investment Holdings Co.Ltd. Financial Statement Overview

Summary

The company shows stable profitability and a strong balance sheet with a healthy equity ratio and manageable leverage. However, recent revenue declines and cash flow challenges present potential risks.

Income Statement

The income statement shows stable revenue with a slight decline in 2024. Gross profit margin is healthy at 24.0% for 2024, and net profit margin stands at 9.9%, indicating efficient cost management. However, revenue growth has been negligible over the years, with a decrease in 2024. EBIT and EBITDA margins are stable, suggesting consistent operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 67.3% in 2024. The debt-to-equity ratio is moderate at 0.28, indicating manageable leverage. Return on equity is decent at 7.9%, reflecting effective use of equity capital. The company maintains a stable financial position with consistent stockholders' equity growth.

Cash Flow

Cash flow analysis reveals challenges, with a significant drop in operating cash flow in 2024 and negative free cash flow, indicating potential liquidity issues. However, previous periods show better cash flow management. The free cash flow to net income ratio is unavailable due to zero reported free cash flow in 2024.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.31B	1.49B	1.48B	1.21B	1.19B
Gross Profit	318.53M	315.25M	332.10M	341.85M	248.14M	269.01M
EBITDA	322.32M	333.68M	310.74M	314.84M	160.95M	130.51M
Net Income	152.86M	130.05M	128.08M	112.74M	-26.82M	-27.70M
Balance Sheet
Total Assets	2.48B	2.44B	2.47B	2.61B	2.41B	2.52B
Cash, Cash Equivalents and Short-Term Investments	261.41M	279.41M	284.59M	391.89M	323.05M	511.83M
Total Debt	395.29M	463.69M	537.79M	585.79M	615.44M	607.80M
Total Liabilities	765.37M	799.24M	959.53M	1.22B	1.12B	1.21B
Stockholders Equity	1.72B	1.64B	1.51B	1.39B	1.28B	1.32B
Cash Flow
Free Cash Flow	34.88M	24.26M	-67.97M	82.54M	469.78K	-3.83M
Operating Cash Flow	93.57M	176.61M	1.41M	197.11M	71.75M	199.75M
Investing Cash Flow	-24.24M	-117.90M	-69.38M	-114.56M	-137.54M	-321.52M
Financing Cash Flow	-63.86M	-77.97M	-90.01M	-29.87M	-142.33M	491.27M

China Gas Industry Investment Holdings Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.90
• 50DMA: Positive
• 100DMA: Positive
• 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:1940, the sentiment is Positive. The current price of 0.9 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.79, and above the 200-day MA of 0.60, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.95 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1940.

China Gas Industry Investment Holdings Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2886	67 Neutral	HK$1.58B	7.68	8.96%	6.91%	-16.94%	-22.17%
1940	66 Neutral	HK$1.16B	7.13	9.25%	―	-3.67%	38.19%
9908	66 Neutral	HK$1.14B	6.06	15.50%	5.30%	3.23%	2.73%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0681	62 Neutral	HK$312.71M	8.14	1.42%	―	-3.63%	―
6828	48 Neutral	HK$773.03M	8.68	6.00%	―	4.42%	-24.00%
1265	45 Neutral	HK$334.75M	-5.87	-3.93%	―	-11.42%	65.17%

China Gas Industry Investment Holdings Co.Ltd. Corporate Events

China Gas Industry Investment Wins Shareholder Approval to Renew Key Gas and Utilities Agreements

Independent shareholders of China Gas Industry Investment Holdings Co. Ltd. have overwhelmingly approved the renewal of the company’s Master Gas Products and Related Services Agreement and Master Utilities and Related Services Agreement, along with the associated annual caps for these continuing connected transactions. With 100% of the votes cast in favour and major shareholder HBIS Group abstaining in line with listing rules on connected transactions, the resolution’s passage ensures continuity of key gas products and utilities arrangements, providing operational certainty and supporting the company’s ongoing commercial relationships within the sector.

The most recent analyst rating on (HK:1940) stock is a Buy with a HK$0.86 price target. To see the full list of analyst forecasts on China Gas Industry Investment Holdings Co.Ltd. stock, see the HK:1940 Stock Forecast page.

China Gas Industry Investment Tightens Audit Committee Governance Framework

China Gas Industry Investment Holdings has formalised and disclosed the terms of reference for its board audit committee, originally established in June 2020, setting out its constitution, membership requirements, and procedural rules. The document clarifies that the committee must comprise at least three non-executive directors, with a majority being independent and at least one possessing recognised accounting or financial expertise, and it bars recent partners of the company’s external auditor from serving for two years, measures that underscore the group’s focus on strengthening oversight of financial reporting, audit processes and internal controls in line with Hong Kong listing requirements.

The most recent analyst rating on (HK:1940) stock is a Buy with a HK$0.86 price target. To see the full list of analyst forecasts on China Gas Industry Investment Holdings Co.Ltd. stock, see the HK:1940 Stock Forecast page.

China Gas Industry Investment Sets Formal Mandate for Remuneration Committee

China Gas Industry Investment Holdings has formalised and published the terms of reference for its board remuneration committee, setting out its composition, authority and operating procedures. The committee must comprise at least three directors with a majority of independent non-executive directors, be chaired by an independent non-executive director, meet at least annually, and operate under clear principles that remuneration should be sufficient to attract and retain directors without being excessive, while prohibiting directors from determining their own pay and allowing the committee to seek independent professional advice, underscoring the company’s commitment to transparent and independent oversight of director compensation.

The most recent analyst rating on (HK:1940) stock is a Buy with a HK$0.86 price target. To see the full list of analyst forecasts on China Gas Industry Investment Holdings Co.Ltd. stock, see the HK:1940 Stock Forecast page.

China Gas Industry Investment Formalizes Nomination Committee Governance Framework

China Gas Industry Investment Holdings Co. Ltd. has formalized the terms of reference for its Board Nomination Committee, outlining its composition, authority and operating procedures to strengthen corporate governance. The committee must comprise at least three directors, the majority being independent non-executive directors with at least one member of a different gender, and is empowered to review directors’ performance and independence, request information and reports from group employees and professional advisers, and meet at least once a year, thereby reinforcing board oversight, diversity and transparency for stakeholders.

The most recent analyst rating on (HK:1940) stock is a Buy with a HK$0.86 price target. To see the full list of analyst forecasts on China Gas Industry Investment Holdings Co.Ltd. stock, see the HK:1940 Stock Forecast page.

China Gas Industry Investment Holdings Announces EGM for Key Agreement Renewals

China Gas Industry Investment Holdings Co. Ltd. has announced an extraordinary general meeting scheduled for December 31, 2025, to approve the renewal of key agreements with HBIS for a three-year period starting January 2026. The renewal of the Master Gas Products and Related Services Agreement and the Master Utilities and Related Services Agreement, along with their respective annual caps, is crucial for the company’s continued operations and strategic positioning in the market. These renewals are interdependent, requiring collective approval, which underscores their significance to the company’s stakeholders.

The most recent analyst rating on (HK:1940) stock is a Buy with a HK$0.86 price target. To see the full list of analyst forecasts on China Gas Industry Investment Holdings Co.Ltd. stock, see the HK:1940 Stock Forecast page.

China Gas Industry Investment Holdings Announces EGM for Agreement Renewals

China Gas Industry Investment Holdings Co. Ltd. has announced the closure of its register of members to facilitate an extraordinary general meeting (EGM) scheduled for December 31, 2025. The meeting aims to seek approval from independent shareholders for the renewal of agreements related to gas products and utilities services, along with the proposed annual caps for these transactions. This move is part of the company’s strategic efforts to maintain and expand its service agreements, which could have significant implications for its market operations and stakeholder engagement.

The most recent analyst rating on (HK:1940) stock is a Buy with a HK$0.86 price target. To see the full list of analyst forecasts on China Gas Industry Investment Holdings Co.Ltd. stock, see the HK:1940 Stock Forecast page.

China Gas Industry Investment Holdings Renews Key Agreements with HBIS

China Gas Industry Investment Holdings Co. Ltd. has announced the renewal of its Master Agreements and TTG Services Agreement for a further three-year term starting January 2026. This renewal, involving connected transactions with HBIS, requires compliance with Hong Kong’s Listing Rules, including reporting and shareholder approval processes. The company will hold an Extraordinary General Meeting (EGM) to seek approval from independent shareholders, with advisory support from an Independent Board Committee and an Independent Financial Adviser.

The most recent analyst rating on (HK:1940) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Gas Industry Investment Holdings Co.Ltd. stock, see the HK:1940 Stock Forecast page.