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Zhonghua Gas Holdings Ltd. (HK:8246)
:8246
Hong Kong Market

Zhonghua Gas Holdings Ltd. (8246) AI Stock Analysis

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HK

Zhonghua Gas Holdings Ltd.

(8246)

Rating:51Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The overall stock score is heavily influenced by the company's weak financial performance, which outweighs the technical analysis indicators that suggest short-term bullish momentum. The negative valuation metrics, particularly the P/E ratio, reflect ongoing operational challenges and financial distress, limiting the stock's attractiveness despite positive price trends.

Zhonghua Gas Holdings Ltd. (8246) vs. iShares MSCI Hong Kong ETF (EWH)

Zhonghua Gas Holdings Ltd. Business Overview & Revenue Model

Company DescriptionZhonghua Gas Holdings Limited, an investment holding company, provides integrated new energy services primarily in the People's Republic of China. Its New Energy Business segment provides integrated new energy services, including technological development, construction, and consultancy services for heat supply and coal-to-natural gas conversion. This segment also supplies liquefied natural gas, as well as trades in new energy related industrial products. The company's Property Investments segment leases investment properties. It also provides money lending and corporate services. The company was formerly known as Northern New Energy Holdings Limited and changed its name to Zhonghua Gas Holdings Limited in September 2018. Zhonghua Gas Holdings Limited was incorporated in 2011 and is based in Wan Chai, Hong Kong.
How the Company Makes MoneyZhonghua Gas Holdings Ltd. generates revenue primarily through the sale and distribution of natural gas to residential, commercial, and industrial customers in China. The company's revenue model is based on long-term contracts and agreements with gas suppliers and local governments to ensure a stable supply of natural gas. The company benefits from China's growing demand for cleaner energy sources, as well as government policies promoting the use of natural gas over coal. Additionally, Zhonghua Gas Holdings may engage in strategic partnerships or joint ventures to expand its market reach and enhance its service offerings, further contributing to its earnings.

Zhonghua Gas Holdings Ltd. Financial Statement Overview

Summary
Zhonghua Gas Holdings Ltd. is facing significant financial challenges, with declining revenues, consistent losses, and negative cash flows. The income statement reveals a substantial revenue decline and negative profit margins, indicating poor operational performance. The balance sheet shows some improvement in debt levels, but negative equity and return on equity remain issues. The cash flow statement reflects severe issues, with negative operating and free cash flows suggesting financial distress.
Income Statement
15
Very Negative
The income statement reveals a significant decline in revenue, dropping from HK$420.66 million in 2021 to HK$89.19 million in 2024. The gross profit margin is negative, indicating cost issues, and the net profit margin is also deeply negative, showing consistent losses. The EBIT and EBITDA margins are concerning, with EBIT heavily negative and consistent negative NET income over the years, indicating poor operational performance and inability to cover operating expenses.
Balance Sheet
40
Negative
The company's balance sheet shows some strengths with a decrease in total debt from 2023 to 2024, improving the debt-to-equity ratio. However, the equity ratio has been declining due to shrinking stockholders' equity. The return on equity is negative due to consistent net losses. The overall stability is affected by high liabilities and negative net income.
Cash Flow
20
Very Negative
The cash flow statement indicates severe issues with negative operating and free cash flows in 2024, suggesting the company is struggling to generate cash from its core operations. The free cash flow to net income ratio is poor, and the operating cash flow to net income ratio is negative, reflecting operational inefficiencies and financial distress.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue123.24M89.19M186.65M200.53M420.66M243.70M
Gross Profit-789.00K3.54M-6.79M-7.95M-7.03M-4.12M
EBITDA-40.72M-38.51M11.23M11.08M-194.44M-133.53M
Net Income-51.74M-49.10M-6.66M-3.74M-213.59M-143.46M
Balance Sheet
Total Assets365.50M406.03M349.67M346.73M358.92M595.03M
Cash, Cash Equivalents and Short-Term Investments58.81M69.10M196.57M38.75M60.77M85.48M
Total Debt90.77M52.97M95.17M88.00M84.62M101.61M
Total Liabilities218.43M233.46M210.43M203.78M214.23M240.48M
Stockholders Equity108.42M136.71M104.76M109.79M115.04M302.63M
Cash Flow
Free Cash Flow-130.68M-130.43M162.78M-18.20M-22.61M-25.60M
Operating Cash Flow-130.68M-129.69M163.23M-18.14M-10.87M-24.92M
Investing Cash Flow1.28M575.00K342.00K191.00K-4.07M-999.00K
Financing Cash Flow-7.08M2.05M-6.50M-8.02M-7.86M92.57M

Zhonghua Gas Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.16
Price Trends
50DMA
0.12
Positive
100DMA
0.12
Positive
200DMA
0.15
Positive
Market Momentum
MACD
<0.01
Negative
RSI
78.54
Negative
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8246, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 78.54 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8246.

Zhonghua Gas Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
HK$13.89B4.25-3.01%7.32%3.67%-54.16%
51
Neutral
HK$677.92M-40.83%-53.54%-866.67%
HK$141.00M15.464.54%
57
Neutral
HK$446.40M25.043.08%37.12%-55.20%
53
Neutral
HK$1.74B-62.57%37.20%5.04%
49
Neutral
HK$1.53B106.67-9.39%-35.62%-481.82%
45
Neutral
HK$287.34M9.097.78%-22.96%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8246
Zhonghua Gas Holdings Ltd.
0.16
-0.03
-15.79%
HK:1615
AB Builders Group Limited
0.24
<0.01
4.35%
HK:1683
Hope Life International Holdings Ltd.
0.82
0.76
1266.67%
HK:1726
HKE Holdings Limited
1.55
-0.32
-17.11%
HK:6829
Dragon Rise Group Holdings Ltd.
1.55
1.01
187.04%
HK:8021
WLS Holdings Ltd
0.02
0.00
0.00%
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: Jul 04, 2025