Zhongyu Gas Holdings Limited (3633) AI Stock Analysis

• Market Cap: €10.14B
• Dividend Yield: 0.54%
• Average Volume (3M): 780.21K
• Price to Earnings (P/E): 66.5
• Beta (1Y): -0.04
• Revenue Growth: -7.82%
• EPS Growth: -38.06%
• Country: HK
• Employees: 5,146
• Sector: Utilities
• Sector Strength: 56
• Industry: Regulated Gas
• EPS (TTM): 0.09
• Shares Outstanding: 2,748,305,200
• 10 Day Avg. Volume: 863,942
• 30 Day Avg. Volume: 780,214
• 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: €4.01
• Price Target Upside: 8.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: HK$4.00 ▲(8.40% Upside)

The stock score reflects significant concerns about financial health due to declining profitability, high leverage, and liquidity issues. Technical analysis shows a neutral trend, while valuation metrics indicate potential overvaluation. These factors suggest caution for potential investors.

Zhongyu Gas Holdings Limited Business Overview & Revenue Model

Company Description

Zhongyu Energy Holdings Limited, an investment holding company, engages in the development, construction, and operation of natural gas projects in the People's Republic of China. The company is involved in the investment, operation, and management of city gas pipeline infrastructure; distribution of piped gas to residential, industrial, and commercial users; operation of compressed natural gas and liquefied natural gas vehicle filling stations; and sale of stoves, gas cooking appliances, wall-hung boilers, and related equipment, as well as trading of natural, coal, and liquefied petroleum gas. It also engages in the designing and consulting of energy projects; research and development of natural gas technology; sale of gas equipment and materials; gas pipeline construction; dangerous goods transportation; and provision of digital and information technology development and related consultancy services, as well as management and insurance services. The company was formerly known as Zhongyu Gas Holdings Limited and changed its name to Zhongyu Energy Holdings Limited in January 2022. Zhongyu Energy Holdings Limited was incorporated in 2001 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Zhongyu Gas Holdings Limited generates revenue through several key streams. The primary source of income is the sale of natural gas to its diverse customer base, including residential, industrial, and commercial clients. The company also earns revenue from the construction and operation of its pipeline networks, which involve fees for connecting new customers to the gas grid and ongoing charges for gas delivery services. Additionally, Zhongyu Gas may engage in partnerships with local governments and other utility providers to expand its distribution network and increase its market penetration. These partnerships often facilitate the company's growth in new geographic areas, contributing to its overall revenue.

Zhongyu Gas Holdings Limited Financial Statement Overview

Summary

Zhongyu Gas Holdings Limited shows revenue growth but faces declining profitability and cash flow issues. High leverage and lack of free cash flow in 2024 raise concerns about financial stability and liquidity management.

Income Statement

Zhongyu Gas Holdings Limited has demonstrated consistent revenue growth over multiple years with the revenue growing from 8.14 billion in 2019 to 13.47 billion in 2024. However, gross profit margin has decreased from 23.45% in 2020 to 13.07% in 2024, indicating rising costs or pricing pressures. Net profit margin has also declined from 12.37% in 2020 to 1.09% in 2024, suggesting decreasing profitability. The EBIT and EBITDA margins have similarly shown a downward trend, indicating potential operational inefficiencies.

Balance Sheet

Debt-to-equity ratio is relatively high, increasing from 2.33 in 2020 to 1.75 in 2024, suggesting significant leverage. This could pose financial risks if not managed properly. Return on Equity (ROE) has significantly dropped from 17.56% in 2020 to 1.98% in 2024, reflecting decreased profitability relative to equity. The equity ratio is relatively stable, but the high debt levels remain a concern for financial stability.

Cash Flow

Free cash flow has been very volatile, with a notable decline in recent years, impacting the company's ability to fund operations without external financing. Operating cash flow has been positive historically, but the zero figures for 2024 suggest a significant reduction in operational cash generation. The lack of free cash flow in 2024 is alarming, indicating potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.47B	13.64B	13.00B	11.34B	8.54B
Gross Profit	1.76B	1.91B	1.97B	2.19B	1.95B
EBITDA	1.63B	1.78B	1.35B	2.26B	2.09B
Net Income	146.38M	246.72M	242.92M	1.19B	1.06B
Balance Sheet
Total Assets	26.22B	26.43B	26.31B	26.67B	23.63B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.52B	1.34B	1.82B	1.74B
Total Debt	12.92B	12.22B	11.54B	11.34B	11.62B
Total Liabilities	17.84B	17.74B	17.18B	17.16B	16.90B
Stockholders Equity	7.39B	7.70B	8.13B	8.66B	6.02B
Cash Flow
Free Cash Flow	350.31M	580.06M	188.16M	282.71M	12.83M
Operating Cash Flow	1.05B	1.50B	1.40B	1.80B	1.89B
Investing Cash Flow	-778.54M	-964.44M	-1.32B	-1.63B	-1.88B
Financing Cash Flow	-12.71M	-248.79M	-434.01M	-43.26M	-252.46M

Zhongyu Gas Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3633, the sentiment is Negative. The current price of 3.69 is below the 20-day moving average (MA) of 3.75, below the 50-day MA of 3.85, and below the 200-day MA of 4.18, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 27.36 is Positive, neither overbought nor oversold. The STOCH value of 16.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3633.

Zhongyu Gas Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2886	74 Outperform	HK$1.60B	7.81	8.96%	6.55%	-16.94%	-22.17%
Sector *	66 Neutral	$17.06B	17.77	5.60%	3.68%	6.63%	11.55%
3633	50 Neutral	€10.14B	66.49	2.04%	0.54%	-7.82%	-38.06%
TGASF	―	$1.84B	8.43	6.98%	5.51%	―	―
TL6	―	€43.51M	―	-3.93%	―	―	―
6WL	―	€1.35B	14.03	5.32%	―	―	―
1600	60 Neutral	HK$4.66B	14.74	4.88%	3.34%	7.55%	-32.06%

Zhongyu Gas Holdings Limited Corporate Events

Zhongyu Energy Holdings Schedules Board Meeting for Interim Results and Dividend Consideration

Zhongyu Energy Holdings Limited has announced a forthcoming Board of Directors meeting scheduled for August 22, 2025. The meeting will address the approval of the unaudited interim results for the first half of 2025 and consider the potential payment of an interim dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its financial performance and investor relations.

Zhongyu Energy Holdings Limited Appoints KPMG as New Auditor

Zhongyu Energy Holdings Limited has announced a change in its auditing firm, transitioning from Deloitte Touche Tohmatsu to KPMG. This decision was made due to a disagreement over audit fees and the more competitive proposal offered by KPMG. The Board and Audit Committee believe this change will enhance the cost-effectiveness of the company’s audits. The transition is expected to benefit the company and its shareholders by leveraging KPMG’s industry knowledge, technical competence, and experience with Hong Kong-listed companies.

Zhongyu Gas Announces Executive Changes: New Appointments to Drive Strategic Growth

Zhongyu Gas Holdings Limited announced the resignation of Mr. Li Yan as an executive director due to health reasons and reaching retirement age, effective June 3, 2025. Concurrently, Mr. Peng Jun and Mr. Wang Jichao have been appointed as executive directors. Mr. Peng, a seasoned leader in the energy sector, has been instrumental in the company’s transformation and growth, bringing strategic vision and expertise in clean energy projects.

Zhongyu Gas Holdings Limited Announces Board and Committee Roles

Zhongyu Gas Holdings Limited has announced the composition of its board of directors and the roles within its committees. The board consists of executive directors, including Mr. Wang Wenliang as Chairman and Mr. Yiu Chi Shing as Vice Chairman, along with independent non-executive directors. The announcement outlines the leadership structure, which could influence the company’s strategic direction and governance.

Zhongyu Gas Holdings Limited Announces Board Composition

Zhongyu Gas Holdings Limited has announced the composition of its board of directors, which includes a mix of executive and independent non-executive directors. The board is chaired by Mr. Wang Wenliang, with Mr. Yiu Chi Shing as Vice Chairman and Mr. Lui Siu Keung serving as the Chief Executive Officer. The company has also detailed the membership of its three board committees: Audit, Remuneration, and Nomination, all chaired by Mr. Li Chunyan. This announcement underscores the company’s commitment to strong governance and leadership, which is crucial for maintaining stakeholder confidence and ensuring effective oversight of its operations.

Zhongyu Gas Holdings Announces AGM Results and Director Retirement

Zhongyu Gas Holdings Limited announced the successful passing of all resolutions at their Annual General Meeting held on June 2, 2025. The resolutions included the approval of financial statements, declaration of a final dividend, re-election of executive directors, and the reappointment of auditors. The meeting also granted mandates to the board for share allotment and repurchase. The retirement of an executive director was also noted.