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Zhongyu Gas Holdings Limited (HK:3633)
:3633

Zhongyu Gas Holdings Limited (3633) AI Stock Analysis

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HK

Zhongyu Gas Holdings Limited

(Frankfurt:3633)

Rating:50Neutral
Price Target:
HK$4.00
▼(-1.72%Downside)
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 (3633) vs. iShares MSCI Hong Kong ETF (EWH)

Zhongyu Gas Holdings Limited Business Overview & Revenue Model

Company DescriptionZhongyu Gas Holdings Limited (3633) is a leading natural gas operator in China, primarily engaged in the investment, operation, and management of city gas pipeline infrastructure, and the distribution and sale of piped natural gas. The company is committed to providing clean energy solutions and enhancing energy efficiency through its comprehensive energy services. It operates primarily within the residential, commercial, and industrial sectors, ensuring safe and reliable energy delivery to its customers.
How the Company Makes MoneyZhongyu Gas Holdings Limited generates revenue through several key streams. The primary source of income is the sale of piped natural gas to residential, commercial, and industrial users. This involves charging customers based on their gas consumption, with pricing often regulated or influenced by government policies. Additionally, the company earns revenue from connection fees when new customers are added to its gas distribution network. Beyond these core activities, Zhongyu Gas may also engage in the sale of energy-related equipment and appliances, as well as providing engineering and maintenance services for gas networks. Strategic partnerships with local governments and other energy companies can also play a critical role in expanding their market reach and enhancing revenue opportunities.

Zhongyu Gas Holdings Limited Financial Statement Overview

Summary
Zhongyu Gas Holdings Limited exhibits consistent revenue growth, but declining profit margins and cash flow metrics, along with high leverage, signal financial challenges. The lack of free cash flow in 2024 raises concerns about liquidity management.
Income Statement
67
Positive
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
58
Neutral
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
45
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.47B13.64B13.00B11.34B8.54B
Gross Profit1.76B1.91B1.97B2.19B1.95B
EBITDA1.63B1.78B1.35B2.26B2.09B
Net Income146.38M246.72M242.92M1.19B1.06B
Balance Sheet
Total Assets26.22B26.43B26.31B26.67B23.63B
Cash, Cash Equivalents and Short-Term Investments1.65B1.52B1.34B1.82B1.74B
Total Debt12.92B12.22B11.54B11.34B11.62B
Total Liabilities17.84B17.74B17.18B17.16B16.90B
Stockholders Equity7.39B7.70B8.13B8.66B6.02B
Cash Flow
Free Cash Flow350.31M580.06M188.16M282.71M12.83M
Operating Cash Flow1.05B1.50B1.40B1.80B1.89B
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 Price4.07
Price Trends
50DMA
4.20
Negative
100DMA
4.19
Negative
200DMA
4.33
Negative
Market Momentum
MACD
-0.04
Positive
RSI
39.84
Neutral
STOCH
30.24
Neutral
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 4.07 is below the 20-day moving average (MA) of 4.15, below the 50-day MA of 4.20, and below the 200-day MA of 4.33, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.24 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$14.00B8.546.93%4.70%7.42%-2.02%
70
Neutral
HK$1.45B7.208.97%7.24%-3.26%-22.44%
63
Neutral
HK$30.55B8.245.37%5.32%-3.09%4.51%
60
Neutral
HK$3.19B9.655.13%4.85%-1.30%-38.13%
60
Neutral
HK$11.65B25.702.75%1.79%-3.03%-0.47%
50
Neutral
€11.19B77.521.91%0.49%-1.26%-40.09%
49
Neutral
HK$356.83M-3.25%-12.22%70.26%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3633
Zhongyu Gas Holdings Limited
4.07
-0.71
-14.80%
HK:1600
Tian Lun Gas Holdings Limited
3.27
-0.06
-1.80%
HK:1635
Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H
2.21
1.09
97.50%
HK:2886
Binhai Investment Co
1.05
-0.11
-9.48%
HK:1265
Tianjin Jinran Public Utilities Co. Ltd. Class H
0.19
>-0.01
-3.00%
HK:1083
Towngas China Co
4.04
1.32
48.64%

Zhongyu Gas Holdings Limited Corporate Events

Zhongyu Gas Announces Executive Changes: New Appointments to Drive Strategic Growth
Jun 3, 2025

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
Jun 3, 2025

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
Jun 2, 2025

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
Jun 2, 2025

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.

Zhongyu Energy Holdings Schedules AGM and Proposes Dividend
May 7, 2025

Zhongyu Energy Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 2, 2025, in Hong Kong. The agenda includes reviewing the company’s financial statements for 2024, declaring a final dividend of HK$0.02 per share, re-electing directors, and re-appointing Deloitte Touche Tohmatsu as auditors. Additionally, the company seeks approval to allot and issue additional shares, not exceeding 20% of the current issued shares, to enhance its capital structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2025