TL Natural Gas Holdings Limited (8536) AI Stock Analysis

• Market Cap: HK$50.79M
• Dividend Yield: N/A
• Average Volume (3M): 117.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: 3.82%
• EPS Growth: 68.82%
• Country: HK
• Employees: 64
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.02
• Shares Outstanding: 212,505,000
• 10 Day Avg. Volume: 54,500
• 30 Day Avg. Volume: 117,750
• PEG Ratio: 0.09
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -28.41
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.24 ▲(1.67% Upside)

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 Business Overview & Revenue Model

Company Description

TL Natural Gas Holdings Limited (8536) is a company focused on the natural gas sector, primarily engaged in the exploration, production, and distribution of natural gas resources. The company operates within the broader energy industry, leveraging its expertise to supply natural gas to various markets. TL Natural Gas Holdings is committed to sustainable energy practices and aims to contribute to the global shift towards cleaner energy solutions.

How the Company Makes Money

TL 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

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.24 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.24, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 60.28 is Neutral, neither overbought nor oversold. The STOCH value of 43.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8536	48 Neutral	HK$50.79M	-5.45	-13.87%	―	3.82%	68.82%
1759	44 Neutral	HK$237.60M	-18.71	-3.11%	―	50.72%	-434.09%