Zhongyu Gas Holdings Limited (3633) AI Stock Analysis

• Market Cap: €8.52B
• Dividend Yield: 0.67%
• Average Volume (3M): 23.38M
• Price to Earnings (P/E): 55.9
• Beta (1Y): -0.13
• Revenue Growth: -7.82%
• EPS Growth: -38.06%
• Country: HK
• Employees: 5,146
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.09
• Shares Outstanding: 2,748,305,200
• 10 Day Avg. Volume: 32,722,401
• 30 Day Avg. Volume: 23,379,194
• PEG Ratio: -2.16
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 36.06
• 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: 48 Neutral
• Price Target: HK$3.50 ▲(17.06% Upside)

Zhongyu Gas Holdings Limited faces significant challenges with declining profitability, high leverage, and liquidity concerns. The technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. These factors contribute to a cautious outlook for the stock.

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 generates revenue primarily through the sale and distribution of natural gas to its customers, which include households, businesses, and industrial facilities. The company earns money by charging customers for the volume of gas consumed, as well as through connection fees for new customers who require access to its gas pipeline infrastructure. Additionally, Zhongyu Gas may derive income from the installation and maintenance of gas-related equipment and appliances. Significant partnerships with local governments and enterprises enhance its operational capabilities and expand its customer base, contributing to its revenue growth. The company's strategic focus on expanding its pipeline network and increasing its market presence in underserved regions also plays a crucial role in driving its earnings.

Zhongyu Gas Holdings Limited Financial Statement Overview

Summary

Zhongyu Gas Holdings Limited shows revenue growth, but declining profitability and cash flow metrics suggest challenges in cost management and operational efficiency. High leverage and liquidity concerns are significant risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.79B	13.47B	13.64B	13.00B	11.34B	8.54B
Gross Profit	1.54B	1.76B	1.91B	1.97B	2.19B	1.95B
EBITDA	1.24B	1.63B	1.78B	1.73B	2.26B	2.09B
Net Income	152.82M	146.38M	246.72M	174.08M	1.19B	1.06B
Balance Sheet
Total Assets	26.38B	26.22B	26.43B	26.31B	26.67B	23.63B
Cash, Cash Equivalents and Short-Term Investments	2.58B	1.65B	1.52B	1.34B	1.87B	1.74B
Total Debt	13.30B	12.92B	12.22B	11.54B	11.34B	11.62B
Total Liabilities	17.77B	17.84B	17.74B	17.18B	17.16B	16.90B
Stockholders Equity	7.61B	7.39B	7.70B	8.13B	8.66B	6.02B
Cash Flow
Free Cash Flow	33.40M	350.31M	580.06M	188.16M	282.71M	12.83M
Operating Cash Flow	735.65M	1.05B	1.50B	1.40B	1.80B	1.89B
Investing Cash Flow	-184.71M	-778.54M	-964.44M	-1.32B	-1.63B	-1.88B
Financing Cash Flow	157.73M	-12.71M	-248.79M	-434.01M	-43.26M	-252.46M

Zhongyu Gas Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 2.99 is below the 20-day moving average (MA) of 3.09, below the 50-day MA of 3.32, and below the 200-day MA of 3.89, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 11.96 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	67 Neutral	HK$1.51B	7.34	8.96%	6.91%	-16.94%	-22.17%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
1083	61 Neutral	HK$14.28B	8.33	6.98%	6.17%	3.86%	30.34%
1635	59 Neutral	HK$21.92B	24.71	5.32%	0.98%	-6.02%	―
1600	59 Neutral	HK$3.01B	9.53	4.88%	5.11%	7.55%	-32.06%
1265	49 Neutral	€367.86M	-6.45	-3.93%	―	-11.37%	65.17%
3633	48 Neutral	€8.52B	55.86	2.04%	0.67%	-7.82%	-38.06%

Zhongyu Gas Holdings Limited Corporate Events

Zhongyu Energy Warns Against Fraudulent Investment Platform

Zhongyu Energy Holdings Limited has issued a warning about a fraudulent platform that is impersonating the company to solicit investments. The company clarified that it is not affiliated with the fraudulent site and emphasized that it does not use social media or third-party platforms for fundraising. Official information should only be obtained from the company’s website, WeChat account, or the HKEX news website. The company has reported the fraudulent activity to law enforcement in Hong Kong and Mainland China and is considering legal action against those responsible.

The most recent analyst rating on (HK:3633) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Zhongyu Gas Holdings Limited stock, see the HK:3633 Stock Forecast page.

Zhongyu Gas Holdings Reports Mixed Interim Results for 2025

Zhongyu Gas Holdings Limited announced its interim results for the first half of 2025, reporting a 9.4% decrease in turnover compared to the same period in 2024. Despite this decline, the company saw a 2.7% increase in profit attributable to its owners, driven by a 100.7% increase in LNG sales to wholesale customers and a 30.6% rise in new piped gas connections for industrial and commercial clients. The results indicate a strategic shift towards expanding its LNG wholesale operations and enhancing its infrastructure capabilities, which could strengthen its market position and offer growth opportunities.

The most recent analyst rating on (HK:3633) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Zhongyu Gas Holdings Limited stock, see the HK:3633 Stock Forecast page.

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.