JiaXing Gas Group Co. Ltd. Class H (9908) AI Stock Analysis

• Market Cap: HK$1.14B
• Dividend Yield: 5.3%
• Average Volume (3M): 25.37K
• Price to Earnings (P/E): 6.1
• Beta (1Y): -0.01
• Revenue Growth: 3.23%
• EPS Growth: 2.73%
• Country: HK
• Employees: 402
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.59
• Shares Outstanding: 37,844,500
• 10 Day Avg. Volume: 24,150
• 30 Day Avg. Volume: 25,366
• PEG Ratio: -0.25
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 6.13
• 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: 66 Neutral
• Price Target: HK$9.00 ▲(10.02% Upside)

The overall stock score of 66 reflects a combination of strong valuation metrics and mixed financial performance. While the stock is attractively valued with a low P/E ratio and high dividend yield, financial performance is hampered by declining profitability and cash flow issues. Technical indicators suggest potential overbought conditions, which could lead to short-term volatility.

Positive Factors

Revenue Growth

The company's solid revenue growth indicates a strong market position and effective business model, which are crucial for long-term sustainability.

Equity Base

An improved equity ratio suggests a stronger financial foundation, enhancing the company's ability to withstand economic fluctuations and invest in growth.

Operational Efficiency

Improved operational efficiency through a higher EBIT margin highlights effective cost management, supporting long-term profitability and competitive advantage.

Negative Factors

Cash Flow Issues

The absence of operating and free cash flow indicates potential liquidity challenges, which could limit the company's ability to fund operations and growth initiatives.

Declining Net Profit Margin

A declining net profit margin suggests rising costs or pricing pressures, which could erode profitability and affect long-term financial health.

Increased Leverage

Higher leverage increases financial risk, potentially impacting the company's ability to manage debt obligations and invest in future opportunities.

JiaXing Gas Group Co. Ltd. Class H Business Overview & Revenue Model

Company Description

JiaXing Gas Group Co., Ltd. operates as a piped natural gas (PNG) operator in the People's Republic of China. The company sells PNG, liquefied natural gas (LNG), and liquefied petroleum gas (LPG) to residential and non-residential users; and provides construction and installation services for gas pipeline network and gas facilities. It also provides gas technology consulting services; constructs and operates new energy facilities, as well as LNG storage and transportation station; transports LNG and compressed natural gas; sells vapour and construction materials; and leases properties. The company serves customers in the Jiaxing port and urban areas. JiaXing Gas Group Co., Ltd. was formerly known as Jiaxing Coalgas Company Limited. The company was founded in 1985 and is headquartered in Jiaxing, the People's Republic of China.

How the Company Makes Money

JiaXing Gas Group generates revenue primarily through the sale of natural gas to residential, commercial, and industrial sectors. The company's revenue model is built on a combination of fixed and variable pricing structures, which include monthly service fees and charges based on gas consumption. Additional revenue streams come from the construction and maintenance of gas pipelines and infrastructure, as well as the sale of gas-related equipment. Significant partnerships with local governments and municipalities for urban gas supply projects further bolster its earnings, enabling the company to secure long-term contracts and stable cash flows.

JiaXing Gas Group Co. Ltd. Class H Financial Statement Overview

Summary

JiaXing Gas Group Co. Ltd. shows mixed financial performance. Strong revenue growth and improved gross profit margin are offset by a decline in net profit margin and significant cash flow issues, with no operating or free cash flow reported for 2024. Increased leverage also poses potential risks.

Income Statement

The company has demonstrated solid revenue growth with a notable increase from 2023 to 2024. Gross Profit Margin improved to 10.37% in 2024 from 8.98% in 2023, indicating better cost management. However, the Net Profit Margin decreased to 5.49% from 8.08%, suggesting increased expenses or lower pricing power. The EBIT Margin improved to 7.59%, indicating better operational efficiency, but the EBITDA Margin decreased slightly to 9.52% from 12.71%.

Balance Sheet

The Debt-to-Equity Ratio increased to 0.45 in 2024 from 0.34 in 2023, indicating higher leverage which could be risky. However, Return on Equity (ROE) was 16.59%, showing efficient use of equity. The Equity Ratio improved to 37.89%, reflecting a stronger equity base relative to assets.

Cash Flow

The Free Cash Flow Growth was negative, indicating challenges in generating additional free cash flow. The Operating Cash Flow to Net Income Ratio was zero, suggesting issues in converting profits to cash. Overall, the cash flow situation appears to be weak, with no operating or free cash flow reported for 2024.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.37B	3.42B	2.96B	3.47B	1.99B	1.27B
Gross Profit	348.63M	354.89M	265.56M	165.76M	237.67M	223.57M
EBITDA	346.62M	325.74M	375.98M	179.34M	214.50M	198.49M
Net Income	173.76M	187.62M	239.00M	69.34M	108.49M	92.52M
Balance Sheet
Total Assets	3.13B	2.98B	2.65B	2.08B	1.97B	1.72B
Cash, Cash Equivalents and Short-Term Investments	507.15M	433.34M	344.50M	294.56M	343.42M	353.05M
Total Debt	768.31M	512.17M	350.65M	383.69M	401.12M	278.07M
Total Liabilities	1.90B	1.80B	1.59B	1.20B	1.15B	960.59M
Stockholders Equity	1.17B	1.13B	1.03B	841.68M	793.14M	735.66M
Cash Flow
Free Cash Flow	313.75M	160.52M	107.26M	55.04M	64.05M	147.27M
Operating Cash Flow	556.89M	316.97M	228.82M	151.11M	132.09M	177.98M
Investing Cash Flow	-403.43M	-199.33M	181.28M	-115.28M	-268.31M	-94.05M
Financing Cash Flow	101.69M	-166.76M	73.02M	-73.80M	52.58M	195.24M

JiaXing Gas Group Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9908, the sentiment is Positive. The current price of 8.18 is above the 20-day moving average (MA) of 8.18, above the 50-day MA of 8.06, and above the 200-day MA of 7.65, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 99.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9908.

JiaXing Gas Group Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2886	67 Neutral	HK$1.58B	7.68	8.96%	6.91%	-16.94%	-22.17%
9908	66 Neutral	HK$1.14B	6.06	15.50%	5.30%	3.23%	2.73%
1940	66 Neutral	HK$1.16B	7.13	9.25%	―	-3.67%	38.19%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
1600	59 Neutral	HK$2.96B	9.34	4.88%	4.94%	7.55%	-32.06%
6828	48 Neutral	HK$773.03M	8.68	6.00%	―	4.42%	-24.00%
1265	45 Neutral	HK$334.75M	-5.87	-3.93%	―	-11.42%	65.17%

JiaXing Gas Group Co. Ltd. Class H Corporate Events

JiaXing Gas Ends Concert Party Agreement, Loosening Control Over 33% Stake

JiaXing Gas Group Co., Ltd. announced that a concert party agreement among key shareholders Zhejiang Taiding Investment, Zhuji Yujia New Energy Technology, executive director Xu Songqiang, and former senior manager Xu Hua has been terminated with immediate effect. Under the original arrangement, these parties were deemed to be acting in concert, with Taiding controlling their voting rights over a combined 33.18% stake in the company, meaning each was regarded as interested in the others’ shareholdings under Hong Kong securities and takeover rules. The termination removes Taiding’s control over the voting rights of the other parties and means the four shareholders are no longer treated as a concert party under the Takeovers Code or as mutually interested parties under the Securities and Futures Ordinance, potentially altering the company’s shareholder dynamics and reducing the concentrated influence previously held through the agreement.

The most recent analyst rating on (HK:9908) stock is a Hold with a HK$9.00 price target. To see the full list of analyst forecasts on JiaXing Gas Group Co. Ltd. Class H stock, see the HK:9908 Stock Forecast page.

JiaXing Gas Revamps Nomination Committee to Meet New Hong Kong Governance Code

JiaXing Gas Group Co., Ltd., a PRC-based city gas distributor listed in Hong Kong, provides gas supply and related services in the energy and utilities sector, mainly serving urban and regional customers. The company has reshaped its nomination committee by appointing non-executive director Ms. Ruan Zeyun and independent non-executive director Mr. Cheng Hok Kai Frederick as members effective 22 December 2025, increasing the committee to five members and ensuring both gender diversity and a majority of independent non-executive directors in line with the amended Corporate Governance Code of the Hong Kong Stock Exchange. It has also revised the committee’s terms of reference to align with the new governance requirements, underscoring its effort to strengthen board oversight and compliance with evolving listing and corporate governance standards.

The most recent analyst rating on (HK:9908) stock is a Hold with a HK$9.00 price target. To see the full list of analyst forecasts on JiaXing Gas Group Co. Ltd. Class H stock, see the HK:9908 Stock Forecast page.

JiaXing Gas Group Sets Out Board Composition and Committee Roles

JiaXing Gas Group Co., Ltd. announced the current composition of its board of directors, comprising executive, non-executive, and independent non-executive directors, reflecting a governance structure typical for a listed Chinese gas utility. The company also detailed the membership and chairperson roles of its audit, remuneration, and nomination committees, underscoring the presence of independent directors in key oversight positions, which may strengthen corporate governance, enhance transparency for investors, and support regulatory compliance as the group continues its operations in the gas sector.

The most recent analyst rating on (HK:9908) stock is a Hold with a HK$9.00 price target. To see the full list of analyst forecasts on JiaXing Gas Group Co. Ltd. Class H stock, see the HK:9908 Stock Forecast page.

JiaXing Gas Group Formalizes Nomination Committee Mandate to Strengthen Governance

JiaXing Gas Group Co., Ltd. has formally established detailed terms of reference for its board Nomination Committee to regulate the selection and appointment of directors and senior management in line with PRC company law, the Hong Kong Listing Rules and its Articles of Association. The Nomination Committee, which must include at least three directors with a majority being independent non-executive directors and at least one member of a different gender, is tasked with setting procedures and standards for board and senior management appointments, reviewing board structure and composition annually, assessing the independence of independent non-executive directors, and advising on director appointments, reappointments and succession planning for key leadership roles. This move strengthens the company’s corporate governance, formalizes its approach to board composition and diversity, and enhances transparency and oversight for stakeholders by clarifying responsibilities, reporting lines and support mechanisms for the committee.

The most recent analyst rating on (HK:9908) stock is a Hold with a HK$9.00 price target. To see the full list of analyst forecasts on JiaXing Gas Group Co. Ltd. Class H stock, see the HK:9908 Stock Forecast page.