Zhongyu Gas Holdings Limited (3633) AI Stock Analysis

• Market Cap: HK$11.86B
• Dividend Yield: N/A
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 81.6
• Beta (1Y): >-0.01
• Revenue Growth: -1.26%
• EPS Growth: -40.09%
• Country: HK
• Employees: 5,146
• Sector: Utilities
• Sector Strength: 90
• Industry: Regulated Gas
• EPS (TTM): 0.05
• Shares Outstanding: 2,771,795,200
• 10 Day Avg. Volume: 1,327,600
• 30 Day Avg. Volume: 1,662,125
• PEG Ratio: 1.60
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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

Zhongyu Gas Holdings Limited's financial performance is the most significant factor, with substantial concerns over declining profitability and liquidity. Technical indicators provide a neutral outlook, but the high P/E ratio suggests potential overvaluation. The absence of dividends makes the stock less attractive for income-focused 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 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 has shown revenue growth; however, profitability has decreased significantly. The declining gross and net profit margins, along with operational inefficiencies, are major concerns. High leverage and liquidity issues further exacerbate financial 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
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
	EBIT
1.02B	1.05B	785.82M	1.72B	1.94B
	EBITDA
1.63B	1.78B	1.35B	2.26B	2.09B
	Net Income Common Stockholders
146.38M	246.72M	242.92M	1.19B	1.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.65B	1.52B	1.34B	1.82B	1.74B
	Total Assets
26.22B	26.43B	26.31B	26.67B	23.63B
	Total Debt
12.92B	12.22B	11.54B	11.34B	11.62B
	Net Debt
11.27B	10.70B	10.20B	9.52B	9.87B
	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: 4.27
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 4.27 is below the 20-day moving average (MA) of 4.30, above the 50-day MA of 4.20, and below the 200-day MA of 4.45, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.94 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$8.48B	10.79	5.35%	4.36%	3.55%	-11.17%
3633	57 Neutral	HK$11.86B	81.64	1.91%	―	-1.26%	-40.09%
3928	41 Neutral	HK$936.00M	―	-2.82%	―	0.59%	23.81%

Zhongyu Gas Holdings Limited Corporate Events

Zhongyu Energy Holdings Schedules AGM and Proposes Dividend

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.

Zhongyu Gas Holdings Limited Navigates Challenges and Opportunities in 2024

Zhongyu Gas Holdings Limited faced a challenging yet opportunistic year in 2024, with fluctuating energy prices and business disruptions impacting its city gas operations. However, the growing demand for clean energy and new national energy laws have supported its transition towards green energy. The company has implemented a ‘dual-wheel drive’ strategy to integrate city gas and smart energy resources, optimize debt, and resume dividend payments to shareholders. It has maintained safety and stability in its city gas business, improved operational quality, and expanded into new markets with innovative gas appliance services.

Zhongyu Gas Holdings Announces Final Dividend for 2024

Zhongyu Gas Holdings Limited has announced a final ordinary cash dividend of HKD 0.02 per share for the financial year ending December 31, 2024. The dividend reflects the company’s commitment to returning value to shareholders and is scheduled for payment on July 15, 2025, following the record date of June 12, 2025. This announcement may positively impact the company’s market perception and investor relations by demonstrating financial stability and shareholder value.

Zhongyu Energy Holdings to Review Annual Results and Dividend

Zhongyu Energy Holdings Limited has announced a Board of Directors’ meeting scheduled for March 28, 2025, to approve the annual results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.