Hong Kong & China Gas (HOKCY) AI Stock Analysis

• Market Cap: $17.51B
• Dividend Yield: 5.04%
• Average Volume (3M): 75.00
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.06
• Revenue Growth: 0.74%
• EPS Growth: 2.92%
• Country: US
• Employees: 56,401
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.02
• Shares Outstanding: 18,659,870,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 75
• PEG Ratio: -2.89
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 1.80
• P/FCF Ratio: 39.37
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.00
• Enterprise Value/Ebitda: 1.62
• 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: 67 Neutral
• Price Target: $1.00 ▲(8.70% Upside)

The overall stock score of 66.5 reflects a stable financial performance with strong profitability and cash generation, albeit with declining revenues. Technical indicators show a positive trend, but valuation concerns arise from a high P/E ratio. The attractive dividend yield provides a counterbalance, offering income potential for investors.

Positive Factors

Cash Generation

Strong cash generation indicates the company's ability to efficiently convert profits into cash, supporting ongoing operations and investments.

Profitability

Consistent profit margins reflect effective cost management and pricing strategies, contributing to long-term financial health and shareholder value.

Market Position

A strong market position in Hong Kong and expansion into China provide a solid foundation for revenue stability and growth opportunities.

Negative Factors

Revenue Decline

Declining revenue can signal challenges in market demand or competitive pressures, potentially impacting future growth and profitability.

Minimal Free Cash Flow Growth

Limited growth in free cash flow may restrict the company's ability to invest in new projects or return capital to shareholders, affecting long-term strategic flexibility.

Stockholders' Equity Decline

A decline in stockholders' equity can reflect financial strain, potentially limiting the company's capacity to leverage equity for future growth initiatives.

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

HOKCY generates revenue primarily through the sale of gas to residential, commercial, and industrial customers. The company operates a robust distribution network that ensures reliable supply and service. Key revenue streams include the sales of gas, connection fees for new customers, and service charges. Additionally, HOKCY has been investing in renewable energy projects and energy efficiency solutions, which are expected to contribute to future revenue growth. The company also benefits from strategic partnerships with various stakeholders in the energy sector, enhancing its operational capabilities and market reach.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.49B	55.47B	56.97B	60.95B	53.56B	40.93B
Gross Profit	23.61B	23.11B	21.98B	14.38B	14.02B	12.72B
EBITDA	14.67B	14.32B	11.88B	11.67B	11.89B	11.34B
Net Income	5.64B	5.71B	6.18B	5.36B	5.13B	6.12B
Balance Sheet
Total Assets	162.42B	158.27B	161.98B	168.47B	168.07B	150.28B
Cash, Cash Equivalents and Short-Term Investments	9.79B	7.69B	10.41B	13.36B	10.63B	7.83B
Total Debt	62.26B	58.81B	56.91B	60.44B	55.92B	43.17B
Total Liabilities	93.50B	89.94B	90.96B	95.71B	88.61B	73.51B
Stockholders Equity	57.61B	57.39B	59.85B	63.61B	69.81B	66.76B
Cash Flow
Free Cash Flow	4.00B	2.54B	2.50B	1.40B	2.20B	3.29B
Operating Cash Flow	9.82B	9.00B	10.93B	9.73B	10.62B	10.58B
Investing Cash Flow	-1.02B	-2.31B	-2.50B	-8.41B	-13.47B	-8.17B
Financing Cash Flow	-9.16B	-9.21B	-12.45B	1.91B	5.39B	-3.01B

Hong Kong & China Gas Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.92
• 50DMA: Negative
• 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 HOKCY, the sentiment is Neutral. The current price of 0.92 is below the 20-day moving average (MA) of 0.94, below the 50-day MA of 0.92, and above the 200-day MA of 0.87, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 24.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HOKCY.

Hong Kong & China Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWX	74 Outperform	$5.71B	12.32	5.42%	3.14%	-23.15%	157.45%
UGI	71 Outperform	$8.05B	12.13	14.87%	4.00%	1.10%	140.04%
ATO	68 Neutral	$27.70B	22.95	9.32%	2.11%	12.91%	9.86%
NJR	68 Neutral	$4.54B	13.54	14.62%	4.05%	13.94%	13.93%
HOKCY	67 Neutral	$17.51B	24.20	9.86%	5.04%	0.74%	2.92%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NI	62 Neutral	$20.04B	22.18	10.23%	2.67%	19.62%	12.87%

Hong Kong & China Gas Corporate Events

Hong Kong & China Gas Co. Ltd. Reports Stable 2025 Earnings

Hong Kong & China Gas Co. Ltd. Sponsored ADR, a prominent player in the utility sector, primarily engages in the production, distribution, and marketing of gas and related services across Hong Kong and mainland China, with a focus on renewable energy and green fuels.