Zhonghua Gas Holdings Ltd. (8246) AI Stock Analysis

• Market Cap: HK$475.97M
• Dividend Yield: N/A
• Average Volume (3M): 218.93K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: -53.54%
• EPS Growth: -866.67%
• Country: HK
• Employees: 45
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 4,033,624,000
• 10 Day Avg. Volume: 147,200
• 30 Day Avg. Volume: 218,933
• PEG Ratio: -0.44
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.91
• 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

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score of 45 reflects significant financial challenges faced by Zhonghua Gas Holdings Ltd., including declining revenue, losses, and negative cash flows. While there is some technical support above the 20-day moving average, the stock lacks fundamental strength due to negative earnings and no dividends. The company needs urgent strategic changes to address its financial distress.

Zhonghua Gas Holdings Ltd. Business Overview & Revenue Model

Company Description

Zhonghua 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 Money

Zhonghua 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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
123.24M	89.19M	186.65M	200.53M	420.66M	243.70M
	Gross Profit
-789.00K	3.54M	-6.79M	-7.95M	-7.03M	-4.12M
	EBIT
-42.69M	-38.51M	-1.90M	2.17M	-209.28M	-145.31M
	EBITDA
-40.72M	-38.51M	11.23M	11.08M	-194.44M	-133.53M
	Net Income Common Stockholders
-51.74M	-49.10M	-6.66M	-3.74M	-213.59M	-143.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.81M	69.10M	196.57M	38.75M	60.77M	85.48M
	Total Assets
365.50M	406.03M	349.67M	346.73M	358.92M	595.03M
	Total Debt
90.77M	52.97M	95.17M	88.00M	84.62M	101.61M
	Net Debt
32.16M	-16.13M	-100.91M	49.25M	23.85M	16.13M
	Total Liabilities
218.43M	233.46M	210.43M	203.78M	214.23M	240.48M
	Stockholders Equity
108.42M	136.71M	104.76M	109.79M	115.04M	302.63M
Cash Flow		Free Cash Flow
-130.68M	-130.43M	162.78M	-18.20M	-22.61M	-25.60M
	Operating Cash Flow
-130.68M	-129.69M	163.23M	-18.14M	-10.87M	-24.92M
	Investing Cash Flow
1.28M	575.00K	342.00K	191.00K	-4.07M	-999.00K
	Financing Cash Flow
-7.08M	2.05M	-6.50M	-8.02M	-7.86M	92.57M

Zhonghua Gas Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.81 is Neutral, 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 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	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
8246	45 Neutral	HK$475.97M	―	-40.83%	―	-53.54%	-866.67%
CRGGF		$6.23B	12.16	9.94%	0.81%	―	―
HEGIF		$3.24B	8.46	11.12%	8.17%	―	―
TGASF		$1.64B	7.65	6.93%	41.21%	―	―
XNGSF		$9.27B	10.89	13.65%	7.47%	―	―
1600	60 Neutral	HK$2.76B	8.34	5.13%	5.65%	-1.30%	-38.13%