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

• Market Cap: HK$1.08B
• Dividend Yield: N/A
• Average Volume (3M): 307.87K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.22
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$0.86 ▼(-4.22% Downside)

The stock's overall score is driven by strong technical indicators and attractive valuation. However, moderate financial performance due to recent revenue and cash flow declines poses a risk. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a solid equity base and manageable leverage supports financial stability and resilience against economic fluctuations.

Efficient Cost Management

Efficient cost management, as evidenced by healthy profit margins, indicates the company's ability to maintain profitability even in challenging market conditions.

Stable Profitability

Stable profitability suggests consistent operational performance, which is crucial for long-term growth and shareholder value creation.

Negative Factors

Revenue Decline

Declining revenue can impact future growth prospects and may indicate challenges in market demand or competitive pressures.

Cash Flow Challenges

Cash flow challenges can hinder the company's ability to invest in growth opportunities and meet financial obligations, affecting long-term sustainability.

Negligible Revenue Growth

Lack of revenue growth may limit the company's ability to expand its market share and improve its competitive position in the industry.

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

Company Description

China Gas Industry Investment Holdings Co.Ltd. (1940) is a leading investment holding company based in Hong Kong, primarily focused on the natural gas and energy sectors. The company engages in the development and operation of natural gas infrastructure, including pipelines and distribution networks, as well as the provision of related services. With a strategic emphasis on expanding its portfolio, China Gas aims to capitalize on the growing demand for clean energy solutions in China and beyond.

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: Negative
• STOCH: Negative

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 0.81, above the 50-day MA of 0.74, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 76.95 is Negative, neither overbought nor oversold. The STOCH value of 95.24 is Negative, 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
1940	71 Outperform	HK$1.08B	6.47	9.25%	―	-3.67%	38.19%
2886	67 Neutral	HK$1.52B	7.41	8.96%	6.91%	-16.94%	-22.17%
9908	66 Neutral	HK$1.13B	6.02	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$303.78M	7.91	1.42%	―	-3.63%	―
1265	49 Neutral	HK$329.24M	-5.77	-3.93%	―	-11.42%	65.17%
6828	48 Neutral	HK$773.03M	8.68	6.00%	―	4.42%	-24.00%

China Gas Industry Investment Holdings Co.Ltd. Corporate Events

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.