Hong Kong & China Gas (HOKCY) AI Stock Analysis

• Market Cap: $16.00B
• Dividend Yield: 6.83%
• Average Volume (3M): 4.33K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.20
• Revenue Growth: -2.30%
• EPS Growth: -5.54%
• Country: US
• Employees: 56,401
• Sector: Utilities
• Sector Strength: 77
• Industry: Regulated Gas
• EPS (TTM): 0.04
• Shares Outstanding: 18,659,870,000
• 10 Day Avg. Volume: 2,877
• 30 Day Avg. Volume: 4,329
• PEG Ratio: 6.68
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 94.85
• 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: 68 Neutral
• Price Target: ―

Hong Kong & China Gas demonstrates solid financial management with strong profitability and cash generation, yet faces challenges from declining revenues. Technical indicators point to positive momentum, but caution arises from potential overbought signals. Valuation metrics show a premium pricing, balanced by a reasonable dividend yield. Overall, the stock presents moderate investment potential with notable strengths and some risks.

Hong Kong & China Gas Business Overview & Revenue Model

Company Description

The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas in Hong Kong and Mainland China. It is involved in the provision of liquefied natural gas, methanol, and coal and other chemicals; conversion and utilization of biomass; agricultural waste; and operation of natural gas refilling stations, piped city-gas projects, upstream and midstream developments, photovoltaic projects, water and wastewater treatment projects, energy exploration and utilization ventures, and aviation fuel facilities. The company supplies town gas to approximately 1.9 million customers. It also provides network connectivity, and data center and cloud computing services; and engages in the software development, solution implementation, and systems integration activities. In addition, the company offers consultancy and engineering contractor services, including utilities installation, infrastructure construction, and civil and building services engineering for public and private projects; and designs and manufactures gas meters and metering systems. Further, it is involved in water supply, and domestic sewage and industrial wastewater treatment serving 2.4 million customers. Additionally, the company manufactures polyethylene piping and fittings; and engages in the customers center, café, restaurant, retail sale, laundry, automatic meter reading system development, laboratory testing, payment gateway and related, project management, landfill gas project, financing, logistics, oil, research and development, property development, and securities investment activities. The Hong Kong and China Gas Company Limited was founded in 1862 and is headquartered in North Point, Hong Kong.

How the Company Makes Money

Hong Kong & China Gas makes money through multiple revenue streams primarily centered around its core business of gas distribution. The company earns revenue from the sale of natural gas to residential, commercial, and industrial customers. It also generates income from the sale and maintenance of gas appliances and related services. Additionally, the company has diversified its revenue sources by investing in energy infrastructure projects, telecommunications, and water supply services. Significant partnerships and joint ventures in mainland China and other parts of Asia contribute to its earnings, providing a steady cash flow from these strategic investments.

Hong Kong & China Gas Financial Statement Overview

Summary

Hong Kong & China Gas exhibits a stable financial position with strong profitability and cash generation capabilities. However, declining revenues and minimal free cash flow growth present potential challenges. The company's moderate leverage and good return on equity indicate strong financial management, yet continuous monitoring of revenue trends is essential.

Income Statement

The company shows stable gross and net profit margins with a gross profit margin of approximately 41.65% and a net profit margin of 10.29% for the latest annual period. However, there has been a decline in revenue over the past year, with a revenue decrease of 2.63%. EBIT and EBITDA margins are also strong, indicating efficient operations. These figures suggest profitability, but the declining revenue is a concern.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 1.02, indicating moderate leverage. The equity ratio stands at 36.27%, showing a reasonable proportion of equity financing. However, the slight decline in stockholders' equity over the year may indicate some financial pressure. The return on equity is strong at 9.95%, reflecting effective management of equity.

Cash Flow

The company maintains positive free cash flow, though it shows minimal growth at 1.44% over the previous year. The operating cash flow to net income ratio is robust at 1.58, suggesting healthy cash generation relative to profits. However, the free cash flow to net income ratio is lower at 0.44, indicating significant capital expenditures which may impact cash availability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
55.47B	56.97B	60.95B	53.56B	40.93B
	Gross Profit
23.11B	21.98B	14.38B	14.02B	12.72B
	EBIT
8.18B	18.10B	8.53B	8.66B	8.40B
	EBITDA
14.32B	11.88B	12.34B	10.42B	11.34B
	Net Income Common Stockholders
5.71B	6.18B	5.36B	5.13B	6.12B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.69B	10.41B	13.36B	10.63B	7.83B
	Total Assets
158.27B	161.98B	168.47B	168.07B	150.28B
	Total Debt
58.81B	56.91B	66.06B	58.15B	45.31B
	Net Debt
52.54B	47.93B	52.81B	47.59B	37.85B
	Total Liabilities
89.94B	90.96B	95.71B	88.61B	73.51B
	Stockholders Equity
57.39B	59.85B	61.23B	67.43B	66.76B
Cash Flow		Free Cash Flow
2.54B	2.50B	1.40B	2.20B	3.29B
	Operating Cash Flow
9.00B	10.93B	9.73B	10.62B	10.58B
	Investing Cash Flow
-2.31B	-2.50B	-8.41B	-13.47B	-8.17B
	Financing Cash Flow
-9.21B	-12.45B	1.91B	5.80B	-3.01B

Hong Kong & China Gas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.87
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOKCY, the sentiment is Positive. The current price of 0.87 is above the 20-day moving average (MA) of 0.87, above the 50-day MA of 0.87, and above the 200-day MA of 0.80, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 18.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOKCY.

Hong Kong & China Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATO	78 Outperform	$24.15B	21.22	9.18%	2.27%	10.60%	8.55%
UGI	76 Outperform	$7.70B	14.78	10.84%	4.14%	-4.30%	―
NI	74 Outperform	$18.60B	21.29	10.34%	2.83%	13.08%	17.47%
NJR	71 Outperform	$4.48B	10.82	17.83%	4.03%	20.30%	63.69%
SWX	68 Neutral	$5.20B	23.19	6.49%	3.46%	-10.78%	16.27%
HOKCY	68 Neutral	$16.00B	21.86	9.72%	6.83%	-2.30%	-5.54%
Sector *	64 Neutral	$8.57B	10.35	4.24%	4.64%	4.07%	-13.04%