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

• Market Cap: HK$1.10B
• Dividend Yield: 6.11%
• Average Volume (3M): 47.57K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.03
• Revenue Growth: 13.91%
• EPS Growth: -23.60%
• Country: HK
• Employees: 402
• Sector: Utilities
• Sector Strength: 86
• Industry: Regulated Gas
• EPS (TTM): 0.78
• Shares Outstanding: 37,844,500
• 10 Day Avg. Volume: 42,750
• 30 Day Avg. Volume: 47,566
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$8.50
• Price Target Upside: 6.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$8.50 ▲(6.25% Upside)

The overall stock score for JiaXing Gas Group Co. Ltd. is primarily driven by its attractive valuation, suggesting it might be undervalued in the market. Positive technical indicators also contribute significantly. However, financial performance concerns, particularly in cash flow and increasing leverage, highlight potential risks.

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

Company Description

JiaXing Gas Group Co. Ltd. Class H (9908) is a leading player in the natural gas industry, primarily engaged in the distribution and sale of natural gas in Jiaxing City, Zhejiang Province, China. The company operates within the utilities sector, providing essential energy services to residential, commercial, and industrial clients. In addition to gas distribution, JiaXing Gas Group is involved in the construction and operation of pipeline networks and gas storage facilities, ensuring a reliable supply of natural gas to its customers.

How the Company Makes Money

JiaXing Gas Group Co. Ltd. generates revenue primarily through the sale and distribution of natural gas. The company's key revenue streams include the direct sale of natural gas to residential, commercial, and industrial consumers. This involves charging customers based on their consumption, which is metered and billed periodically. Additionally, the company earns revenue from the installation and maintenance of gas pipelines and related infrastructure. JiaXing Gas Group also engages in strategic partnerships and collaborations with local governments and other energy companies to expand its distribution network and secure long-term supply agreements, contributing to its financial stability and growth.

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

Summary

JiaXing Gas Group Co. Ltd. shows mixed financial performance. While revenue growth is strong, the decline in Net Profit Margin and weak cash flow position indicate potential risks. The balance sheet shows increased leverage, which could be risky despite a healthy equity ratio.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.42B	2.96B	3.47B	1.99B	1.27B
Gross Profit	354.89M	265.56M	165.76M	237.67M	223.57M
EBITDA	325.74M	375.98M	179.34M	214.50M	198.49M
Net Income	187.62M	239.00M	69.34M	108.49M	92.52M
Balance Sheet
Total Assets	2.98B	2.65B	2.08B	1.97B	1.72B
Cash, Cash Equivalents and Short-Term Investments	302.88M	344.50M	294.56M	328.56M	353.05M
Total Debt	512.17M	350.65M	383.69M	401.12M	278.07M
Total Liabilities	1.80B	1.59B	1.20B	1.15B	960.59M
Stockholders Equity	1.13B	1.03B	841.68M	802.04M	735.66M
Cash Flow
Free Cash Flow	158.24M	107.26M	55.04M	64.05M	147.27M
Operating Cash Flow	316.97M	228.82M	151.11M	132.09M	177.98M
Investing Cash Flow	-199.33M	181.28M	-115.28M	-268.31M	-94.05M
Financing Cash Flow	-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: 8.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 is below the 20-day moving average (MA) of 8.01, above the 50-day MA of 7.75, and above the 200-day MA of 7.31, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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
9908	74 Outperform	HK$1.10B	5.42	17.44%	6.11%	13.91%	-23.60%
2886	74 Outperform	HK$1.47B	7.13	8.97%	7.24%	-3.26%	-22.44%
1940	63 Neutral	HK$636.00M	4.51	8.26%	―	-13.51%	-0.59%
Sector *	63 Neutral	HK$29.34B	8.54	5.80%	4.90%	-3.44%	2.46%
TL6	―	€45.98M	―	-3.25%	―	―	―
1600	60 Neutral	HK$3.35B	10.12	5.13%	4.65%	-1.30%	-38.13%
6828	54 Neutral	HK$1.09B	12.97	6.29%	―	-21.48%	-7.50%

JiaXing Gas Group Co. Ltd. Class H Corporate Events

JiaXing Gas Group’s AGM Resolutions Unanimously Approved

JiaXing Gas Group Co., Ltd. held its Annual General Meeting on June 6, 2025, where all proposed resolutions were unanimously approved. Key resolutions included the approval of financial reports for the year ended December 31, 2024, the distribution of a final dividend, and the re-appointment of Ernst & Young as the company’s auditor. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued operational stability and growth.