TL Natural Gas Holdings Limited (8536) AI Stock Analysis

• Market Cap: HK$63.20M
• Dividend Yield: N/A
• Average Volume (3M): 595.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 21.68%
• EPS Growth: 59.32%
• Country: HK
• Employees: 64
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): -0.06
• Shares Outstanding: 183,195,000
• 10 Day Avg. Volume: 1,228,500
• 30 Day Avg. Volume: 595,583
• PEG Ratio: 0.17
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -34.03
• 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: 51 Neutral
• Price Target: HK$0.50 ▲(47.06%Upside)

The stock score reflects moderate financial performance with ongoing profitability challenges, as highlighted by the negative P/E ratio and net income loss. Technical analysis suggests stability with neutral RSI, but bearish momentum is indicated by the negative MACD. The absence of dividend yield further impacts valuation negatively. The strong balance sheet provides some support, but cash flow issues remain a concern.

TL Natural Gas Holdings Limited Business Overview & Revenue Model

Company Description

TL Natural Gas Holdings Limited (8536) is a company engaged in the natural gas industry, focusing on the operation and management of natural gas distribution networks. The company primarily provides natural gas to residential, commercial, and industrial customers, ensuring a reliable and sustainable energy supply. TL Natural Gas Holdings Limited is committed to leveraging advanced technology and infrastructure to enhance the efficiency and safety of its natural gas services.

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 shows moderate revenue growth but faces profitability challenges, with negative EBIT and net profit margins. Despite a strong equity position and low leverage, cash flow issues persist, though there is some improvement in free cash flow.

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
	EBIT
-8.55M	-6.07M	178.00K	-6.43M	-17.65M
	EBITDA
-5.97M	-1.30M	2.22M	-969.00K	-15.62M
	Net Income Common Stockholders
-9.68M	-23.02M	-3.64M	-8.48M	-22.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.44M	34.17M	33.80M	29.65M	6.23M
	Total Assets
62.20M	69.16M	95.32M	97.61M	118.21M
	Total Debt
993.00K	1.80M	3.79M	3.75M	21.54M
	Net Debt
-28.44M	-26.57M	-30.01M	-25.90M	15.31M
	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: 0.34
• 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:8536, the sentiment is Negative. The current price of 0.34 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.33, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 51.52 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
2688	77 Outperform	$71.61B	10.94	13.65%	58.14%	-5.28%	-13.15%
3868	74 Outperform	€8.21B	9.47		5.51%	-3.06%	-24.51%
1083	70 Neutral	$13.54B	8.27	6.93%	4.88%	7.42%	-2.02%
1193	59 Neutral	$46.84B	11.46	9.94%	6.78%	1.39%	-21.74%
Sector *	55 Neutral	HK$24.12B	4.36	-1.73%	9.58%	-0.05%	-66.27%
8536	51 Neutral	HK$63.20M	―	-17.08%	―	21.68%	59.32%
3633	50 Neutral	€11.43B	79.54	1.91%	0.48%	-1.26%	-40.09%