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

• Market Cap: HK$932.18M
• Dividend Yield: N/A
• Average Volume (3M): 11.84M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.24
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.04 ▲(26.67% Upside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is held down primarily by weak financial performance (thin/negative operating profitability, declining revenue, high leverage, and zero operating/free cash flow). Technicals are supportive of recent upside but are overbought, and valuation is only moderately attractive with no dividend data to offset the financial risks.

Positive Factors

Regulated city gas & pipeline franchise

Operating city gas distribution and pipeline infrastructure creates durable, demand-driven revenue tied to essential energy services. Regulated or municipal franchise characteristics typically produce predictable throughput and raise barriers to entry, supporting stable cash flows over the medium term.

Multiple revenue streams across value chain

Earning from commodity sales, distribution fees and value-added services diversifies revenue exposure. This mix helps mitigate pure commodity margin pressure and can provide recurring fee income and cross-sell opportunities that support revenue resilience over coming quarters.

Positive ROE despite challenges

A positive ROE indicates the business can generate returns on shareholders' capital even amid headwinds. Sustained modest ROE provides a foundation for reinvestment or debt servicing and signals some operational effectiveness that could be scaled if margins or volumes recover.

Negative Factors

Very low/negative operating margins

Extremely thin gross margin and a negative EBIT margin imply limited ability to absorb cost shocks or invest in growth. Margin weakness undermines sustainable cash generation, constrains reinvestment, and increases reliance on external financing if operating performance does not improve.

Zero operating and free cash flow

Absence of operating and free cash flow signals material liquidity stress and limits capacity to service debt, pay suppliers, or fund capital projects internally. Over months this restricts strategic flexibility and raises refinancing or working-capital risks if conditions persist.

Elevated leverage

High debt relative to equity increases fixed obligations and financial vulnerability, particularly with weak margins and no operating cash flow. Elevated leverage can constrain investment, increase refinancing risk, and magnify earnings volatility from interest or demand shocks.

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

Financials are weak: very low gross margin (~2.94%), negative EBIT margin (-5.82%) and near-zero EBITDA margin (~0.09%). Revenue fell ~21.5% YoY, leverage is elevated (debt-to-equity ~1.73), and 2024 shows zero operating/free cash flow, raising liquidity risk despite improved net margin (~5.04%).

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	Jun 2021
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: Neutral
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 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:6828, the sentiment is Neutral. 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 neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2886	67 Neutral	HK$1.54B	2.05	8.96%	6.91%	-16.94%	-22.17%
9908	66 Neutral	HK$1.25B	3.25	15.50%	5.30%	3.23%	2.73%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
1940	60 Neutral	HK$1.90B	1.67	9.25%	―	-3.67%	38.19%
1600	59 Neutral	HK$2.86B	5.95	4.88%	4.94%	7.55%	-32.06%
6828	49 Neutral	HK$932.18M	9.74	6.00%	―	4.42%	-24.00%
1265	45 Neutral	HK$364.18M	-2.78	-3.93%	―	-11.42%	65.17%

Beijing Gas Blue Sky Holdings Ltd Corporate Events

Beijing Gas Blue Sky Says Litigation Appeal Not Expected to Hit Daily Operations

Beijing Gas Blue Sky Holdings Limited has disclosed that Dalian PetroChina Xiuhe Energy Co., Ltd. has filed an appeal with the Higher People’s Court of Liaoning Province, challenging a prior judgment in ongoing litigation involving the company and its subsidiaries over alleged claims related to their energy business dealings. The company said it will respond appropriately to the appeal, keep shareholders and potential investors updated through further announcements, and currently expects no material impact on the group’s daily operations, while stating it will take measures to minimize any potential disruption.

The most recent analyst rating on (HK:6828) stock is a Buy with a HK$0.05 price target. To see the full list of analyst forecasts on Beijing Gas Blue Sky Holdings Ltd stock, see the HK:6828 Stock Forecast page.

Beijing Gas Blue Sky Faces RMB161.8 Million Claim in Equity Transfer Lawsuit

Beijing Gas Blue Sky Holdings Limited has disclosed an update on a lawsuit in mainland China brought by three individuals who claim they were original shareholders of a target company and who allege that an equity transfer agreement signed in 2018 has not been fully honored. The claimants assert that they transferred 51% of the target company’s equity and management control to entities linked to Beijing Gas Blue Sky, but that only part of the agreed RMB161.8 million consideration has been paid, and they are seeking full payment, contractual penalties, and legal costs from the defendants. Beijing Gas Blue Sky rejects the assertion that it is the ultimate controller of the two co-defendants, Hill Hero Limited and Shenzhen Hanlong Technical Service Co., and has engaged PRC legal advisers to mount a vigorous defense. The company says the litigation currently has no material impact on the group’s daily operations, though it acknowledges the case is at an early stage and the financial and legal outcomes remain uncertain, which could carry implications for its financial obligations depending on the court’s eventual ruling.

The most recent analyst rating on (HK:6828) stock is a Hold with a HK$0.03 price target. To see the full list of analyst forecasts on Beijing Gas Blue Sky Holdings Ltd stock, see the HK:6828 Stock Forecast page.

Beijing Gas Blue Sky Wins Court Ruling as Debt Assignment in Benxi Deal Ruled Invalid

Beijing Gas Blue Sky Holdings Limited has announced a favourable court judgment in a long-running dispute tied to the acquisition of a 10% equity interest in Benxi Liaoyou, where Dalian PetroChina Xiuhe Energy had sought to recover an outstanding consideration from the company and its affiliates via an assigned debt claim. The Court ruled that the debt assignment agreement between the claimant and the original seller, Liaohe Longyi, was invalid, leading to the dismissal of all claims against Beijing Gas Blue Sky, Shenzhen Xinliao and Guizhou Shunyao, and ordering the claimant to bear the case acceptance and preservation fees, though the parties retain a limited window to appeal. The ruling removes a legal overhang related to the transaction and alleviates potential financial and reputational pressures on the company, although any appeal could prolong the matter.

The most recent analyst rating on (HK:6828) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on Beijing Gas Blue Sky Holdings Ltd stock, see the HK:6828 Stock Forecast page.

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.