Beijing Gas Blue Sky Holdings Ltd (6828) AI Stock Analysis

• Market Cap: HK$773.03M
• Dividend Yield: N/A
• Average Volume (3M): 11.84M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.27
• Revenue Growth: 4.42%
• EPS Growth: -24.00%
• Country: HK
• Employees: 564
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): <0.01
• Shares Outstanding: 22,736,115,000
• 10 Day Avg. Volume: 17,919,800
• 30 Day Avg. Volume: 11,844,733
• PEG Ratio: -1.35
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -36.34
• 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$0.04 ▲(26.67% Upside)

The overall stock score of 48 reflects significant financial challenges and bearish technical indicators. The company's high leverage and lack of positive cash flows are major concerns, while the technical analysis indicates a bearish trend. The valuation is relatively favorable, but the absence of a dividend yield limits its appeal.

Positive Factors

Regulatory Support

Regulatory backing for natural gas and a shift towards cleaner energy provide a stable foundation for long-term growth and market expansion.

Partnerships

Strong partnerships enhance market reach and operational efficiency, supporting sustainable revenue growth and competitive positioning.

Market Position

As a leading player in natural gas distribution, the company benefits from established market presence and infrastructure, aiding long-term stability.

Negative Factors

High Leverage

High leverage can strain financial resources, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term viability.

Cash Flow Challenges

Lack of positive cash flows restricts the ability to invest in growth and meet obligations, posing a risk to financial health and operational capacity.

Declining Revenue

A sharp revenue decline suggests challenges in market demand or competitive pressures, potentially affecting long-term growth and profitability.

Beijing Gas Blue Sky Holdings Ltd Business Overview & Revenue Model

Company Description

Beijing Gas Blue Sky Holdings Limited, an investment holding company, engages in the sale and distribution of natural gas and other related products in the People's Republic of China. It operates through Natural Gas Refuelling Station; Trading and Distribution of Natural Gas; Direct Supply to Industrial Users; and City Gas, Pipeline Construction Fee, Value-Added Service and Others segments. The company operates compressed natural gas (CNG) and liquefied natural gas (LNG) refueling stations for vehicles; and distributes and trades in CNG, LNG fuel oil and other related oil by-products as a wholesaler to industrial and commercial users through direct supply facilities. It also sells natural gas to residential, industrial, and commercial users through pipelines. In addition, the company is involved in the provision of repair and maintenance, and pipeline construction. The company owns 29 gas refueling stations, including 17 CNG refueling stations and 12 LNG refueling stations. The company was formerly known as Blue Sky Power Holdings Limited and changed its name to Beijing Gas Blue Sky Holdings Limited in January 2017. Beijing Gas Blue Sky Holdings Limited was founded in 2000 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Beijing Gas Blue Sky Holdings Ltd generates revenue primarily through the distribution of natural gas to residential, commercial, and industrial sectors. Key revenue streams include the sale of piped natural gas, which is charged based on consumption, and the sale of liquefied natural gas (LNG) to various customers. Additionally, the company earns income from infrastructure development projects, such as the construction and maintenance of gas pipelines and facilities. Significant partnerships with local governments and energy suppliers contribute to its earnings, enhancing its ability to expand its service coverage and customer base. Factors such as regulatory support for natural gas usage and the increasing demand for cleaner energy sources also play a critical role in driving the company’s financial performance.

Beijing Gas Blue Sky Holdings Ltd Financial Statement Overview

Summary

Beijing Gas Blue Sky Holdings Ltd faces significant financial challenges. Despite a slight improvement in net profit margin, the company has a negative EBIT margin and minimal EBITDA margin, indicating operational difficulties. The balance sheet shows high leverage, and the cash flow statement reveals zero operating and free cash flows, highlighting liquidity concerns.

Income Statement

The income statement of Beijing Gas Blue Sky Holdings Ltd reveals a challenging scenario. The gross profit margin for 2024 was approximately 2.94%, indicating low profitability at the gross level. The net profit margin showed improvement to 5.04% from the previous year, but this is partly due to a significant decrease in revenue by 21.48% compared to 2023. The EBIT margin is negative at -5.82%, reflecting continued operational challenges, and the EBITDA margin is only slightly positive at 0.09%, suggesting limited operational cash flow generation.

Balance Sheet

The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of approximately 1.73, which is relatively high and suggests potential financial risk. The equity ratio stands at 30.47%, indicating that a significant portion of assets is financed by equity. Return on equity for 2024 was 6.27%, showing some profitability relative to equity, but the overall leverage remains a concern.

Cash Flow

The cash flow statement highlights significant issues with zero recorded operating and free cash flows in 2024, indicating potential liquidity constraints. The absence of positive cash flows could impact the company's ability to meet its financial obligations and invest in growth opportunities. The free cash flow to net income ratio could not be calculated due to the lack of free cash flow data, further emphasizing the cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.38B	1.69B	2.13B	1.57B	1.73B	1.46B
Gross Profit	39.76M	49.71M	64.87M	88.26M	119.34M	155.25M
EBITDA	10.76M	1.58M	77.56M	-7.14M	-433.83M	-3.87B
Net Income	58.36M	85.07M	91.29M	18.64M	-275.40M	-3.72B
Balance Sheet
Total Assets	4.92B	4.45B	5.09B	5.22B	5.24B	5.47B
Cash, Cash Equivalents and Short-Term Investments	399.68M	360.37M	401.43M	570.24M	767.77M	759.49M
Total Debt	2.58B	2.35B	2.73B	2.79B	3.60B	3.53B
Total Liabilities	3.26B	2.97B	3.46B	3.66B	4.54B	4.66B
Stockholders Equity	1.54B	1.36B	1.41B	1.29B	604.84M	749.90M
Cash Flow
Free Cash Flow	-21.26M	-23.78M	69.78M	152.40M	45.58M	-207.41M
Operating Cash Flow	33.28M	17.01M	126.32M	174.47M	103.37M	-150.69M
Investing Cash Flow	92.76M	277.90M	-4.85M	308.20M	204.74M	-220.46M
Financing Cash Flow	-179.18M	-299.45M	-244.52M	-386.15M	-85.13M	524.94M

Beijing Gas Blue Sky Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6828, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.36 is Neutral, neither overbought nor oversold. The STOCH value of -133.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6828.

Beijing Gas Blue Sky Holdings 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%
1600	59 Neutral	HK$3.12B	9.87	4.88%	4.94%	7.55%	-32.06%
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%

Beijing Gas Blue Sky Holdings Ltd Corporate Events

Beijing Gas Blue Sky Secures CNY200 Million Loan Facility

Beijing Gas Blue Sky Holdings Limited has announced the acceptance of a facility letter for an uncommitted revolving loan facility amounting to up to CNY200 million. This financial arrangement requires Beijing Gas Group Co., Ltd. and Beijing Enterprises Holdings Limited to maintain a majority shareholding in the company, ensuring stability and continuity in its operations. The facility’s terms allow for annual extensions at the bank’s discretion, providing flexibility in financial management. This move is likely to impact the company’s financial strategy and stakeholder confidence positively.

Beijing Gas Blue Sky Extends Loan Facility Amid Shareholding Conditions

Beijing Gas Blue Sky Holdings Limited announced the acceptance of a supplementary facility letter, extending the maturity date of its revolving loan facility to 12 months. This extension is subject to the bank’s right to demand repayment or alter terms at its discretion. The company must ensure that the State-owned Assets Supervision and Administration Commission remains the largest shareholder, and that BE Group and Beijing Gas Group maintain a minimum 51% shareholding in the company. Failure to comply could result in the termination of the facility and immediate repayment demands.

Beijing Gas Blue Sky Resolves Litigation, Acquires Full Interest in Fund 47

Beijing Gas Blue Sky Holdings Limited has reached a mediation agreement to resolve litigation with Yu Pengnian Management and other parties, resulting in the company acquiring full interest in Fund 47 and an indirect 40% equity interest in Target Company 47. This agreement, which avoids further legal proceedings, allows the company to consolidate its interests without making Target Company 47 a subsidiary, thereby not affecting its financial statements.

Beijing Gas Blue Sky Secures CNH1.2 Billion Loan with Change of Control Clause

Beijing Gas Blue Sky Holdings Limited has entered into a syndicated facility agreement for a CNH1,200,000,000 term loan with several financial institutions. This agreement includes a change of control clause, which could impact the company’s financial commitments if certain ownership conditions are not maintained. The company is required to disclose any changes in control in its interim and annual reports, ensuring transparency for stakeholders.

Beijing Gas Blue Sky Secures HK$200 Million Loan Facility

Beijing Gas Blue Sky Holdings Limited has secured an uncommitted revolving loan facility of up to HK$200 million from a bank, which will enhance its financial flexibility. The facility requires the company to maintain certain ownership structures, ensuring that the People’s Government of Beijing Municipality continues to hold a controlling interest in the company through its subsidiaries. This financial arrangement is expected to support the company’s operations and strengthen its market position in the energy sector.