TL Natural Gas Holdings Limited (8536) AI Stock Analysis

• Market Cap: HK$59.50M
• Dividend Yield: N/A
• Average Volume (3M): 616.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: 21.68%
• EPS Growth: 59.32%
• Country: HK
• Employees: 64
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Specialty Retail
• EPS (TTM): -0.06
• Shares Outstanding: 212,505,000
• 10 Day Avg. Volume: 286,500
• 30 Day Avg. Volume: 616,833
• PEG Ratio: -0.08
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -30.29
• 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: HK$0.50
• Price Target Upside: 78.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$0.50 ▲(78.57%Upside)

The overall stock score is primarily impacted by weak financial performance, especially profitability concerns, and negative technical indicators suggesting a bearish market outlook. Valuation concerns due to a negative P/E ratio further weigh on the score.

TL Natural Gas Holdings Limited Business Overview & Revenue Model

Company Description

TL Natural Gas Holdings Limited, an investment holding company, sells compressed natural gas (CNG) in Jingzhou, China. The company distributes CNG to retail customers, such as vehicular end-users; and wholesale customers, including urban gas companies, gas refuelling station operators, and industrial users. It also offers automated car wash services. The company operates four refuelling stations in Jingzhou, Hubei Province. TL Natural Gas Holdings Limited was founded in 2007 and is headquartered in Jingzhou City, China. TL Natural Gas Holdings Limited is a subsidiary of Yongsheng Enterprise Limited.

How the Company Makes Money

TL Natural Gas Holdings Limited generates revenue through the sale and distribution of natural gas to a diverse customer base, including residential, commercial, and industrial sectors. The company's revenue model is primarily based on the volume of natural gas distributed, with pricing structures that may vary based on consumption levels and contractual agreements. Additionally, the company may engage in strategic partnerships with other energy providers and infrastructure companies, which can contribute to revenue growth through joint ventures and collaborative projects aimed at expanding their market reach and optimizing operational efficiencies.

TL Natural Gas Holdings Limited Financial Statement Overview

Summary

The company's financial performance is mixed. While revenue growth is positive at 23.5%, negative profitability margins and a net income loss of $9.68 million indicate significant operational challenges. The balance sheet is strong with minimal leverage, but cash flow management remains a concern due to negative operating and free cash flows.

Income Statement

The income statement shows moderate revenue growth but reflects negative profitability margins. Revenue increased by 23.5% from 2023 to 2024, indicating positive growth. However, the company has struggled with profitability, as evidenced by negative EBIT and net profit margins, particularly with a net income loss of approximately $9.68 million in 2024. This highlights ongoing operational challenges.

Balance Sheet

The balance sheet appears relatively stable with a strong equity position. The debt-to-equity ratio is low at approximately 0.02, indicating minimal leverage, and the equity ratio is high at about 85.7%, suggesting a robust capital structure. However, the decline in stockholders' equity from previous years could be a concern if it continues.

Cash Flow

Cash flow analysis shows some challenges, with negative operating and free cash flows in 2024. The operating cash flow to net income ratio is negative, indicating cash flow issues. However, free cash flow improved compared to 2023, reducing losses by approximately 53.2%. The improvement in financing cash flow suggests active efforts to manage liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.28M	77.95M	67.59M	46.44M	50.94M
Gross Profit	8.12M	7.49M	16.27M	-988.00K	-836.00K
EBITDA	-5.97M	-1.30M	2.22M	-969.00K	-15.62M
Net Income	-9.68M	-23.02M	-3.64M	-8.48M	-22.64M
Balance Sheet
Total Assets	62.20M	69.16M	95.32M	97.61M	118.21M
Cash, Cash Equivalents and Short-Term Investments	29.44M	34.17M	33.80M	29.65M	6.23M
Total Debt	993.00K	1.80M	3.79M	3.75M	21.54M
Total Liabilities	8.90M	9.88M	13.24M	13.34M	30.91M
Stockholders Equity	53.30M	60.09M	82.65M	84.27M	87.30M
Cash Flow
Free Cash Flow	-1.90M	-4.07M	4.63M	18.74M	-18.69M
Operating Cash Flow	-1.78M	-1.70M	8.28M	24.31M	-10.78M
Investing Cash Flow	120.00K	-1.99M	-3.65M	4.09M	-12.25M
Financing Cash Flow	2.63M	-1.74M	-1.62M	-4.70M	3.32M

TL Natural Gas Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 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:8536, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.31, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8536.

TL Natural Gas Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	¥252.20B	13.26	6.45%	2.72%	5.22%	-11.89%
1759	55 Neutral	HK$216.00M	39.77	-3.26%	―	14.00%	-239.86%
8536	45 Neutral	HK$59.50M	―	-17.08%	―	21.68%	59.32%