Zhonghua Gas Holdings Ltd. (8246) AI Stock Analysis

• Market Cap: HK$381.60M
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: -74.15%
• EPS Growth: 1.96%
• Country: HK
• Employees: 45
• Sector: Utilities
• Sector Strength: 65
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 4,597,624,000
• 10 Day Avg. Volume: 4,720,900
• 30 Day Avg. Volume: 1,770,966
• PEG Ratio: -0.02
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 6.84
• P/FCF Ratio: -4.67
• 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: 39 Underperform
• Price Target: HK$0.08 ▼(-5.00% Downside)

Zhonghua Gas Holdings Ltd. receives a low overall stock score due to significant financial distress, characterized by declining revenues, negative profitability, and poor cash flow generation. Technical analysis suggests a bearish trend, and valuation metrics highlight a lack of profitability. The absence of earnings call insights and corporate events further limits positive factors for the stock.

Positive Factors

Debt Reduction

Reducing total debt improves financial stability and reduces interest burden, providing more flexibility for future investments and operations.

Strategic Partnerships

Partnerships with local governments enhance market access and can lead to increased customer base and revenue streams, supporting long-term growth.

Infrastructure Network

A robust pipeline network ensures efficient gas distribution, providing a competitive edge and supporting stable revenue generation.

Negative Factors

Declining Revenue

Significant revenue decline indicates potential loss of market share and challenges in maintaining business operations, impacting long-term viability.

Negative Profit Margins

Negative profit margins suggest inefficiencies and inability to cover costs, threatening sustainability and future profitability.

Cash Flow Issues

Negative cash flows highlight operational inefficiencies and financial distress, limiting the company's ability to invest and grow.

Zhonghua Gas Holdings Ltd. Business Overview & Revenue Model

Company Description

Zhonghua Gas Holdings Ltd. (8246) is a Hong Kong-based investment holding company primarily engaged in the distribution of natural gas and related services. The company operates in the energy sector, focusing on the supply and distribution of gas to residential, commercial, and industrial customers. Its core products include piped natural gas and liquefied natural gas (LNG), as well as ancillary services related to gas usage and safety.

How the Company Makes Money

Zhonghua Gas Holdings Ltd. generates revenue primarily through the sale of natural gas to its customers, which includes residential households, commercial establishments, and industrial clients. The company has established a network of pipelines that facilitate the distribution of gas, allowing it to charge for both the supply of gas and the infrastructure services involved in its delivery. Additionally, Zhonghua may earn revenue from the installation and maintenance of gas appliances and equipment, as well as from service contracts with its customers for ongoing support. Strategic partnerships with local governments and other entities can also play a significant role in expanding its market reach and enhancing its revenue streams.

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 shows a drastic revenue drop and negative profit margins. The balance sheet indicates high liabilities and negative net income, and the cash flow statement reveals severe cash generation issues. Overall, the company's financial health is weak and requires urgent strategic changes.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.19M	186.65M	200.53M	420.66M	243.70M
Gross Profit	3.54M	-6.79M	-7.95M	-7.03M	-4.12M
EBITDA	-38.51M	11.23M	11.08M	-194.44M	-135.45M
Net Income	-49.10M	-6.66M	-5.25M	-191.31M	-131.02M
Balance Sheet
Total Assets	406.03M	349.67M	346.73M	358.92M	595.03M
Cash, Cash Equivalents and Short-Term Investments	69.10M	196.57M	38.75M	60.77M	85.48M
Total Debt	52.97M	95.17M	88.00M	84.62M	103.41M
Total Liabilities	233.46M	210.43M	203.78M	214.23M	240.48M
Stockholders Equity	136.71M	104.76M	109.79M	115.04M	302.63M
Cash Flow
Free Cash Flow	-130.43M	162.78M	-18.20M	-22.61M	-25.60M
Operating Cash Flow	-129.69M	163.23M	-18.14M	-10.87M	-24.92M
Investing Cash Flow	575.00K	342.00K	191.00K	-4.07M	-999.00K
Financing Cash Flow	2.05M	-6.50M	-8.02M	-7.86M	92.57M

Zhonghua Gas Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8246, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8246.

Zhonghua Gas Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
6829	64 Neutral	HK$792.00M	93.54	2.76%	―	22.30%	48.48%
1726	53 Neutral	HK$1.64B	―	-68.32%	―	26.40%	-6.44%
8021	45 Neutral	HK$215.51M	-30.00	-1.80%	―	-3.98%	37.50%
8246	39 Underperform	HK$381.60M	-5.72	-42.45%	―	-74.15%	1.96%
1683	39 Underperform	HK$821.15M	―	-8.55%	―	-37.55%	-1727.78%