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TL Natural Gas Holdings Limited (HK:8536)
:8536
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TL Natural Gas Holdings Limited
(8536)
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Rating:48Neutral
Price Target:
HK$0.24
▼(-2.40% Downside)
The overall stock score is primarily influenced by the company's financial performance, which is hindered by profitability challenges and negative cash flows. Technical analysis suggests a lack of strong momentum, while valuation is negatively impacted by ongoing losses and the absence of a dividend yield. These factors collectively result in a below-average stock score.
Positive Factors
Revenue Growth
Strong revenue growth indicates increasing demand for natural gas and effective market penetration, which can drive long-term business expansion.
Low Leverage
Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without significant debt burden.
Improved Cash Flow
Improving cash flow suggests better operational efficiency and potential for future profitability, supporting long-term financial health.
Negative Factors
Profitability Challenges
Ongoing profitability issues can hinder reinvestment in the business and affect long-term growth prospects if not addressed.
Negative Cash Flow
Persistent negative cash flow can strain resources and limit the company's ability to fund operations and growth initiatives over time.
Negative Return on Equity
Negative ROE indicates inefficient use of equity capital, which may deter investors and affect the company's ability to raise funds.
TL Natural Gas Holdings Limited (8536) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$50.15M
Dividend YieldN/A
Average Volume (3M)117.75K
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth3.82%
EPS Growth68.82%
CountryHK
Employees64
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)N/A
Shares Outstanding212,505,000
10 Day Avg. Volume54,500
30 Day Avg. Volume117,750
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.01
Price to Sales (P/S)0.56
P/FCF Ratio-28.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
TL Natural Gas Holdings Limited Business Overview & Revenue Model
Company DescriptionTL 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 MoneyTL Natural Gas Holdings Limited generates revenue through several key streams, primarily focusing on the extraction and sale of natural gas. The company earns income by selling natural gas to utility companies, industrial clients, and commercial businesses. Additionally, it may engage in long-term contracts with strategic partners to ensure a steady supply of natural gas over extended periods, providing predictable revenue. The company may also benefit from partnerships with other energy firms, enhancing its distribution capabilities and market reach. Furthermore, fluctuations in natural gas prices can significantly impact revenue, making it essential for the company to manage its operations efficiently and adapt to market conditions.
TL Natural Gas Holdings Limited Financial Statement Overview
Summary
TL Natural Gas Holdings Limited is facing significant profitability challenges despite revenue growth. The balance sheet is strong with low leverage, but negative cash flows and net losses are concerning. The company needs to focus on improving operational efficiency and cash flow generation to enhance financial stability.Income Statement
The company has shown some revenue growth, with a 23.5% increase from 2023 to 2024. However, profitability remains a concern, as evidenced by negative EBIT and net income margins. The gross profit margin improved slightly to 8.4% in 2024, but the net profit margin is still negative at -10.1%, indicating ongoing operational challenges.Balance Sheet
The balance sheet is relatively strong with a low debt-to-equity ratio of 0.02, indicating low leverage. The equity ratio is high at 85.7%, suggesting a strong equity base. However, the return on equity is negative due to persistent net losses, which is a concern for long-term sustainability.Cash Flow
The company has struggled with negative free cash flow, although there was an improvement from -4.07 million in 2023 to -1.90 million in 2024. The operating cash flow to net income ratio is negative, reflecting challenges in converting earnings into cash flow. The cash flow situation remains a critical area for improvement.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 94.74M | 96.28M | 77.95M | 67.59M | 46.44M | 50.94M |
| Gross Profit | 7.87M | 8.12M | 7.49M | 16.27M | -988.00K | -836.00K |
| EBITDA | -4.59M | -5.97M | -3.29M | 2.22M | -969.00K | -15.62M |
| Net Income | -7.94M | -9.68M | -23.02M | -3.07M | -8.48M | -22.64M |
Balance Sheet | ||||||
| Total Assets | 64.37M | 62.20M | 69.16M | 95.32M | 97.61M | 118.21M |
| Cash, Cash Equivalents and Short-Term Investments | 32.10M | 29.44M | 34.17M | 36.19M | 29.65M | 6.23M |
| Total Debt | 707.00K | 993.00K | 1.80M | 3.79M | 3.75M | 21.54M |
| Total Liabilities | 8.49M | 8.90M | 9.88M | 13.24M | 13.34M | 30.91M |
| Stockholders Equity | 55.88M | 53.30M | 60.09M | 82.65M | 84.27M | 87.30M |
Cash Flow | ||||||
| Free Cash Flow | -1.11M | -1.90M | -4.07M | 4.63M | 18.74M | -18.69M |
| Operating Cash Flow | -1.04M | -1.78M | -1.70M | 8.28M | 24.31M | -10.78M |
| Investing Cash Flow | 72.00K | 120.00K | -1.99M | -3.65M | 4.09M | -12.25M |
| Financing Cash Flow | 4.96M | 2.63M | -1.74M | -1.62M | -4.70M | 3.32M |
TL Natural Gas Holdings Limited Technical Analysis
Negative
0.25
Price Trends
0.26
Negative
0.25
Negative
0.28
Negative
Market Momentum
>-0.01
Positive
38.71
Neutral
37.50
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 0.25 is above the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.26, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 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
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Sector (61)
HK:8536
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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.