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

• Market Cap: HK$636.00M
• Dividend Yield: N/A
• Average Volume (3M): 288.20K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.19
• Revenue Growth: -13.51%
• EPS Growth: -0.59%
• Country: HK
• Employees: 324
• Sector: Utilities
• Sector Strength: 88
• Industry: Regulated Gas
• EPS (TTM): 0.07
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 245,600
• 30 Day Avg. Volume: 288,200
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 63 Neutral
• Price Target: HK$0.50 ▲(0.00% Upside)

China Gas Industry Investment Holdings Co. Ltd. demonstrates moderate financial health with stable profitability but faces challenges with declining revenue and cash flow. The stock appears undervalued based on its P/E ratio, yet the technical indicators suggest weak momentum. Improving revenue growth and liquidity management could enhance its financial position.

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

Company Description

China Gas Industry Investment Holdings Co. Ltd. (1940) is a company engaged in the industrial gas sector in China. It focuses on the production, distribution, and sale of a variety of industrial gases, including but not limited to oxygen, nitrogen, and argon. The company serves a broad range of industries such as healthcare, metallurgy, and electronics, providing essential gases that are crucial for various industrial processes.

How the Company Makes Money

China Gas Industry Investment Holdings Co. Ltd. generates revenue primarily through the production and sale of industrial gases. The company's key revenue streams include long-term supply contracts with industrial clients, spot sales of gases to various industries, and the provision of related services such as gas equipment installation and maintenance. Additionally, the company may engage in strategic partnerships with other firms to enhance its distribution network and expand its market reach, thereby contributing to its earnings. Significant factors contributing to its revenue include the growth in demand for industrial gases across various sectors and the company's ability to maintain efficient production and distribution operations.

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

Summary

Moderate financial health with stable profitability and a solid balance sheet. However, recent declines in revenue and cash flow 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.49B	1.48B	1.21B	1.19B
Gross Profit	315.25M	332.10M	341.85M	248.14M	269.01M
EBITDA	333.68M	310.74M	314.84M	160.95M	130.51M
Net Income	130.05M	128.08M	112.74M	-26.82M	-27.70M
Balance Sheet
Total Assets	2.44B	2.47B	2.61B	2.41B	2.52B
Cash, Cash Equivalents and Short-Term Investments	279.41M	284.59M	360.74M	297.55M	511.83M
Total Debt	463.69M	537.79M	585.79M	615.44M	607.80M
Total Liabilities	799.24M	959.53M	1.22B	1.12B	1.21B
Stockholders Equity	1.64B	1.51B	1.39B	1.28B	1.32B
Cash Flow
Free Cash Flow	24.26M	-67.97M	82.54M	469.78K	-3.83M
Operating Cash Flow	176.61M	1.41M	197.11M	71.75M	199.75M
Investing Cash Flow	-117.90M	-69.38M	-114.56M	-137.54M	-321.52M
Financing Cash Flow	-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: 0.50
• 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 0.5 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.48, and above the 200-day MA of 0.49, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 63.89 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
9908	74 Outperform	HK$1.10B	5.42	17.44%	6.11%	13.91%	-23.60%
2886	71 Outperform	HK$1.47B	7.13	8.97%	7.24%	-3.26%	-22.44%
1940	63 Neutral	HK$636.00M	4.51	8.26%	―	-13.51%	-0.59%
Sector *	62 Neutral	HK$29.15B	8.50	5.79%	4.93%	-3.50%	2.59%
KEH	―		―	0.60%	―	―	―
TL6	―	€45.98M	―	-3.25%	―	―	―
6828	54 Neutral	HK$1.14B	13.51	6.29%	―	-21.48%	-7.50%

China Gas Industry Investment Holdings Co.Ltd. Corporate Events

China Gas Industry Investment Ends Compliance Adviser Agreement

China Gas Industry Investment Holdings Co. Ltd. has announced the mutual termination of its compliance adviser agreement with Altus Capital Limited, effective from July 8, 2025. This decision follows the company’s full compliance with the relevant listing rules over four financial years, indicating a stable adherence to regulatory requirements and potentially impacting its operational independence and stakeholder relations positively.

China Gas Industry Investment Holdings Announces AGM Resolution Success

China Gas Industry Investment Holdings Co. Ltd. announced the successful passing of all resolutions proposed at its annual general meeting held on June 20, 2025. Key resolutions included the adoption of the company’s financial statements, re-election of directors, re-appointment of the auditor, and granting mandates for share repurchase and issuance. These resolutions, supported by a significant majority, reflect strong shareholder confidence and are expected to enhance the company’s operational flexibility and strategic positioning in the market.