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

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HK:8246

Zhonghua Gas Holdings Ltd.

(8246)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
HK$0.72
▲(793.75% Upside)
Action:Reiterated
Date:07/02/26
The score is held down primarily by ongoing losses and deeply negative operating and net margins despite a revenue rebound. Improved balance sheet leverage and the recent return to positive operating/free cash flow provide some support, but technical momentum is weak (below key moving averages with negative MACD) and valuation is hard to justify with negative earnings and no dividend data.
Positive Factors
Cash-generation turnaround
A sustained shift to positive operating and free cash flow materially strengthens the company’s ability to fund operations, reduce reliance on external financing, and prioritize capex or restructure. Over 2–6 months, consistent cash generation improves liquidity, supports debt reduction, and creates optionality for strategic investment or stabilization initiatives.
Negative Factors
Deep operating & net losses
Severe negative EBIT and net margins indicate the core business is not yet profitable and is destroying shareholder value. Without structural margin improvement—through pricing, mix shift, or cost cutting—the company will struggle to convert revenue growth into sustainable earnings, limiting reinvestment and long-term viability.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash-generation turnaround
A sustained shift to positive operating and free cash flow materially strengthens the company’s ability to fund operations, reduce reliance on external financing, and prioritize capex or restructure. Over 2–6 months, consistent cash generation improves liquidity, supports debt reduction, and creates optionality for strategic investment or stabilization initiatives.
Read all positive factors

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

Zhonghua Gas Holdings Ltd. Business Overview & Revenue Model

Company Description
Zhonghua Gas Holdings Limited, an investment holding company, provides integrated energy services in the People's Republic of China. It operates in two segments, Energy Business and Property Investments. The Energy Business segment offers integrat...
How the Company Makes Money
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Zhonghua Gas Holdings Ltd. Financial Statement Overview

Summary
Financials look like a turnaround but remain weak overall. Revenue rebounded sharply in 2026 after a multi-year decline, and cash flow improved materially with positive operating cash flow and free cash flow. However, profitability is still the key problem: gross margin is modestly positive (~9.7%) but EBIT and net margins remain deeply negative (about -41% and -30%), indicating the business has not yet reached sustainable earnings.
Income Statement
26
Negative
Balance Sheet
56
Neutral
Cash Flow
62
Positive
BreakdownMar 2026Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue75.74M89.19M186.65M200.53M420.66M
Gross Profit7.39M3.54M-6.79M-7.95M-7.03M
EBITDA-28.86M-38.95M11.23M11.08M-194.44M
Net Income-22.70M-49.10M-6.66M-5.25M-191.31M
Balance Sheet
Total Assets326.55M406.03M349.67M346.73M358.92M
Cash, Cash Equivalents and Short-Term Investments111.52M69.10M196.57M38.75M60.77M
Total Debt23.82M52.97M95.17M88.00M84.62M
Total Liabilities133.85M233.46M210.43M203.78M214.23M
Stockholders Equity161.15M136.71M104.76M109.79M115.04M
Cash Flow
Free Cash Flow73.57M-130.43M162.78M-18.20M-22.61M
Operating Cash Flow77.14M-129.69M163.23M-18.14M-10.87M
Investing Cash Flow-4.68M575.00K342.00K191.00K-4.07M
Financing Cash Flow25.07M2.05M-6.50M-8.02M-7.86M

Zhonghua Gas Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.80
Negative
100DMA
0.79
Negative
200DMA
0.73
Negative
Market Momentum
MACD
-0.02
Positive
RSI
44.10
Neutral
STOCH
77.34
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 below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.80, and below the 200-day MA of 0.73, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.10 is Neutral, neither overbought nor oversold. The STOCH value of 77.34 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
59
Neutral
HK$1.84B11.165.02%34.71%0.53%
54
Neutral
HK$1.74B5.181.40%3.23%-10.56%-29.26%
50
Neutral
HK$1.49B6.548.04%6.55%-26.24%-63.51%
46
Neutral
HK$426.39M-14.35-23.88%
46
Neutral
HK$3.12B19.095.96%0.21%-14.03%-9.66%
42
Neutral
HK$635.08M-3.02-6.76%-43.29%-1535.48%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8246
Zhonghua Gas Holdings Ltd.
0.72
-0.55
-43.40%
HK:2355
Baoye Group Co., Ltd. Class H
3.37
-0.86
-20.26%
HK:2236
Wison Engineering Services Co., Ltd.
0.48
0.08
20.00%
HK:0830
China State Construction Development Holdings Limited
0.66
-0.74
-52.69%
HK:2520
Shanxi Installation Group Co., Ltd. Class H
2.27
0.20
9.82%
HK:2503
Zhongshen Jianye Holding Limited
0.19
-0.56
-75.13%
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 02, 2026