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Hong Kong and China Gas

DB:HCG
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HCG
DB
HK$288B
Market Cap
  1. Home
  2. DE
  3. Utilities
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. The last earnings update was 5 days ago. More info.


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HCG Share Price and Events
7 Day Returns
4.3%
DB:HCG
-1.1%
Europe Gas Utilities
1.5%
DE Market
1 Year Returns
44%
DB:HCG
11.1%
Europe Gas Utilities
-6.2%
DE Market
HCG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hong Kong and China Gas (HCG) 4.3% 7.4% 16.1% 44% 75.5% 113.6%
Europe Gas Utilities -1.1% -0% 4% 11.1% 36.5% 28.3%
DE Market 1.5% 6% 8.5% -6.2% 10.7% 15.3%
1 Year Return vs Industry and Market
  • HCG outperformed the Gas Utilities industry which returned 11.1% over the past year.
  • HCG outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
HCG
Industry
5yr Volatility vs Market

Value

 Is Hong Kong and China Gas undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hong Kong and China Gas to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hong Kong and China Gas.

DB:HCG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:HCG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Gas Utilities Unlevered Beta Simply Wall St/ S&P Global 0.37
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.371 (1 + (1- 25%) (13.84%))
0.604
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 6.65%)
5.55%

Discounted Cash Flow Calculation for DB:HCG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hong Kong and China Gas is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:HCG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 5.55%)
2019 4,268.92 Analyst x4 4,044.53
2020 4,849.40 Analyst x5 4,352.99
2021 5,971.00 Analyst x2 5,078.05
2022 6,842.16 Est @ 14.59% 5,513.07
2023 7,545.63 Est @ 10.28% 5,760.30
2024 8,093.84 Est @ 7.27% 5,854.02
2025 8,511.01 Est @ 5.15% 5,832.18
2026 8,823.90 Est @ 3.68% 5,728.76
2027 9,057.01 Est @ 2.64% 5,571.02
2028 9,230.69 Est @ 1.92% 5,379.40
Present value of next 10 years cash flows HK$53,114.32
DB:HCG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$9,230.69 × (1 + 0.23%) ÷ (5.55% – 0.23%)
HK$173,904.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$173,904.77 ÷ (1 + 5.55%)10
HK$101,347.12
DB:HCG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$53,114.32 + HK$101,347.12
HK$154,461.44
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$154,461.44 / 15,386.41
HK$10.04
DB:HCG Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:HCG represents 0.11548x of SEHK:3
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.11548x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 10.04 x 0.11548
€1.16
Value per share (EUR) From above. €1.16
Current discount Discount to share price of €2.16
= -1 x (€2.16 - €1.16) / €1.16
-86.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hong Kong and China Gas is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hong Kong and China Gas's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hong Kong and China Gas's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:HCG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.61
SEHK:3 Share Price ** SEHK (2019-04-23) in HKD HK$18.7
Europe Gas Utilities Industry PE Ratio Median Figure of 8 Publicly-Listed Gas Utilities Companies 17.84x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.6x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hong Kong and China Gas.

DB:HCG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3 Share Price ÷ EPS (both in HKD)

= 18.7 ÷ 0.61

30.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hong Kong and China Gas is overvalued based on earnings compared to the Europe Gas Utilities industry average.
  • Hong Kong and China Gas is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Hong Kong and China Gas's expected growth come at a high price?
Raw Data
DB:HCG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
4.1%per year
Global Gas Utilities Industry PEG Ratio Median Figure of 29 Publicly-Listed Gas Utilities Companies 2.44x
Germany Market PEG Ratio Median Figure of 269 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

DB:HCG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 30.9x ÷ 4.1%

7.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hong Kong and China Gas is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hong Kong and China Gas's assets?
Raw Data
DB:HCG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$4.06
SEHK:3 Share Price * SEHK (2019-04-23) in HKD HK$18.7
Europe Gas Utilities Industry PB Ratio Median Figure of 9 Publicly-Listed Gas Utilities Companies 1.81x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.84x
DB:HCG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3 Share Price ÷ Book Value per Share (both in HKD)

= 18.7 ÷ 4.06

4.61x

* Primary Listing of Hong Kong and China Gas.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hong Kong and China Gas is overvalued based on assets compared to the Europe Gas Utilities industry average.
X
Value checks
We assess Hong Kong and China Gas's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Gas Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Gas Utilities industry average (and greater than 0)? (1 check)
  5. Hong Kong and China Gas has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hong Kong and China Gas expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hong Kong and China Gas expected to grow at an attractive rate?
  • Hong Kong and China Gas's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Hong Kong and China Gas's earnings growth is positive but not above the Germany market average.
  • Hong Kong and China Gas's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:HCG Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:HCG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 4.1%
DB:HCG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 7.3%
Europe Gas Utilities Industry Earnings Growth Rate Market Cap Weighted Average 40%
Europe Gas Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:HCG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:HCG Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 49,943 10,812 10,454 4
2020-12-31 44,069 10,282 9,805 10
2019-12-31 41,416 8,719 9,041 8
DB:HCG Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 39,073 9,439 9,313
2018-09-30 37,680 9,291 8,928
2018-06-30 36,287 9,142 8,543
2018-03-31 34,382 8,833 8,384
2017-12-31 32,477 8,524 8,225
2017-09-30 31,151 8,505 7,854
2017-06-30 29,826 8,485 7,482
2017-03-31 29,191 8,477 7,411
2016-12-31 28,557 8,469 7,341
2016-09-30 28,614 8,503 7,361
2016-06-30 28,671 8,536 7,380
2016-03-31 29,131 8,406 7,341

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hong Kong and China Gas's earnings are expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
  • Hong Kong and China Gas's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:HCG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Hong Kong and China Gas Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HCG Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.68 0.75 0.57 4.00
2020-12-31 0.64 0.70 0.55 10.00
2019-12-31 0.60 0.65 0.52 11.00
DB:HCG Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.61
2018-09-30 0.58
2018-06-30 0.56
2018-03-31 0.54
2017-12-31 0.53
2017-09-30 0.51
2017-06-30 0.49
2017-03-31 0.48
2016-12-31 0.48
2016-09-30 0.48
2016-06-30 0.48
2016-03-31 0.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hong Kong and China Gas is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hong Kong and China Gas's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hong Kong and China Gas has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hong Kong and China Gas performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hong Kong and China Gas's growth in the last year to its industry (Gas Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hong Kong and China Gas's year on year earnings growth rate has been positive over the past 5 years.
  • Hong Kong and China Gas's 1-year earnings growth exceeds its 5-year average (13.2% vs 4.8%)
  • Hong Kong and China Gas's earnings growth has exceeded the Europe Gas Utilities industry average in the past year (13.2% vs 3.8%).
Earnings and Revenue History
Hong Kong and China Gas's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hong Kong and China Gas Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HCG Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 39,073.00 9,312.80 3,295.10
2018-09-30 37,680.10 8,927.75 3,252.05
2018-06-30 36,287.20 8,542.70 3,209.00
2018-03-31 34,381.85 8,384.00 3,121.95
2017-12-31 32,476.50 8,225.30 3,034.90
2017-09-30 31,151.05 7,853.65 3,012.95
2017-06-30 29,825.60 7,482.00 2,991.00
2017-03-31 29,191.35 7,411.35 2,973.10
2016-12-31 28,557.10 7,340.70 2,955.20
2016-09-30 28,613.85 7,360.55 2,924.40
2016-06-30 28,670.60 7,380.40 2,893.60
2016-03-31 29,130.95 7,341.20 2,868.95
2015-12-31 29,591.30 7,302.00 2,844.30
2015-09-30 30,240.55 7,495.90 2,854.55
2015-06-30 30,889.80 7,689.80 2,864.80
2015-03-31 31,252.25 7,450.60 2,785.50
2014-12-31 31,614.70 7,211.40 2,706.20
2014-09-30 31,260.75 7,109.55 2,567.55
2014-06-30 30,906.80 7,007.70 2,428.90
2014-03-31 29,576.35 6,930.75 2,355.30
2013-12-31 28,245.90 6,853.80 2,281.70
2013-09-30 26,890.50 7,032.80 2,202.05
2013-06-30 25,535.10 7,211.80 2,122.40
2013-03-31 25,228.80 7,461.95 2,067.80
2012-12-31 24,922.50 7,712.10 2,013.20
2012-09-30 24,706.85 7,387.45 1,920.30
2012-06-30 24,491.20 7,047.00 1,843.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hong Kong and China Gas has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hong Kong and China Gas used its assets more efficiently than the Europe Gas Utilities industry average last year based on Return on Assets.
  • Hong Kong and China Gas has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hong Kong and China Gas's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Gas Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hong Kong and China Gas has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hong Kong and China Gas's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hong Kong and China Gas's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hong Kong and China Gas's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Hong Kong and China Gas's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hong Kong and China Gas's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hong Kong and China Gas Company Filings, last reported 3 months ago.

DB:HCG Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 70,193.30 39,828.60 9,181.10
2018-09-30 70,193.30 39,828.60 9,181.10
2018-06-30 71,603.10 40,647.40 13,370.10
2018-03-31 71,603.10 40,647.40 13,370.10
2017-12-31 70,245.90 38,744.00 12,991.30
2017-09-30 70,245.90 38,744.00 12,991.30
2017-06-30 65,771.00 35,296.70 10,629.40
2017-03-31 65,771.00 35,296.70 10,629.40
2016-12-31 62,898.00 34,691.30 11,612.00
2016-09-30 62,898.00 34,691.30 11,612.00
2016-06-30 62,966.50 34,734.90 12,616.00
2016-03-31 62,966.50 34,734.90 12,616.00
2015-12-31 62,112.90 34,544.80 13,264.90
2015-09-30 62,112.90 34,544.80 13,264.90
2015-06-30 63,616.10 34,357.30 14,190.90
2015-03-31 63,616.10 34,357.30 14,190.90
2014-12-31 62,223.70 32,952.80 13,863.20
2014-09-30 62,223.70 32,952.80 13,863.20
2014-06-30 59,896.30 32,343.30 13,327.50
2014-03-31 59,896.30 32,343.30 13,327.50
2013-12-31 56,370.50 31,811.20 10,799.60
2013-09-30 56,370.50 31,811.20 10,799.60
2013-06-30 53,624.70 32,094.10 12,347.00
2013-03-31 53,624.70 32,094.10 12,347.00
2012-12-31 50,350.20 32,667.70 12,794.80
2012-09-30 50,466.90 32,276.90 12,794.80
2012-06-30 47,190.10 29,362.00 10,867.10
  • Hong Kong and China Gas's level of debt (56.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (56.4% vs 56.7% today).
  • Debt is well covered by operating cash flow (23.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.2x coverage).
X
Financial health checks
We assess Hong Kong and China Gas's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hong Kong and China Gas has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hong Kong and China Gas's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.87%
Current annual income from Hong Kong and China Gas dividends. Estimated to be 2.14% next year.
If you bought €2,000 of Hong Kong and China Gas shares you are expected to receive €37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hong Kong and China Gas's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • Hong Kong and China Gas's dividend is below the markets top 25% of dividend payers in Germany (3.71%).
Upcoming dividend payment

Purchase Hong Kong and China Gas before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:HCG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Gas Utilities Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:HCG Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.45 4.00
2020-12-31 0.40 10.00
2019-12-31 0.38 10.00
DB:HCG Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-20 0.350 1.872
2018-08-21 0.350 2.168
2018-04-23 0.318 2.063
2018-03-20 0.318 2.161
2017-04-19 0.289 2.135
2017-03-16 0.289 2.257
2016-04-21 0.263 2.229
2016-03-18 0.263 2.426
2015-04-22 0.239 2.088
2015-03-18 0.239 1.927
2014-08-25 0.217 1.796
2014-04-23 0.217 1.888
2014-03-19 0.217 2.043
2013-04-22 0.198 1.735
2013-03-18 0.198 1.548
2012-03-19 0.180 1.669
2011-08-23 0.169 1.816
2011-03-15 0.163 1.816
2010-09-07 0.154 1.772
2010-03-16 0.148 1.729
2009-08-27 0.148 1.891
2009-04-24 0.148 2.187

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hong Kong and China Gas's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Hong Kong and China Gas's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hong Kong and China Gas afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hong Kong and China Gas has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hong Kong and China Gas's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alfred Chan
COMPENSATION HK$37,800,000
AGE 67
TENURE AS CEO 21.9 years
CEO Bio

Mr. Wing Kin Chan, also known as Alfred, B.B.S., C.Eng., F.H.K.I.E., F.I. Mech.E., F.I.G.E.M., F.E.I., M.Sc. (Eng), B.Sc. (Eng), has been the Managing Director of The Hong Kong And China Gas Company Limited since May 1997 and also has been its Executive Director since January 1997. Mr. Chan has been the Chairman and Executive Director of Towngas China Company Limited since March 1, 2007. He has been an Executive Director of Henderson Cyber Limited since January 2000 and the subsidiary companies of the Group. He served as General Manager of Marketing at The Hong Kong and China Gas Company Limited from 1992 to 1995 and General Manager of Marketing & Customer Service since 1995.He serves as the Chairman of the Group's joint venture companies in China: Panyu Hong Kong & China Gas Limited, Zhongshan Hong Kong & China Gas Limited, Guangzhou Dongyong Hong Kong & China Gas Limited, Qingdao Zhongji Hong Kong and China Gas Company Limited and Yixing Hong Kong & China Gas Company Limited. He has been Vice Chairman of Shenzhen Gas Corporation Ltd. since April 2004. He has been a Non-Executive Director of Shanghai DaZhong Public Utilities (Group) Co. Ltd. since May 25, 2017. He serves as a Director of Suzhou Industrial Park Hong Kong and China Gas Company Limited. He served as an Independent Non-Executive Director of Standard Chartered Bank (Hong Kong) Limited until July 17, 2015. He is a Standing Director of the China Gas Association. He received the Executive Award under the DHL/SCMP Hong Kong Business Awards 2005 and the Director of the Year Awards - Listed Companies (SEHK - Hang Seng Index Constituents) Executive Directors from The Hong Kong Institute of Directors in 2006, the Leadership Award in Gas Industry Award 2015 from the Institution of Gas Engineers & Managers and the Energy and Utilities Alliance of the United Kingdom, “The CEO of the Year 2017” Award from China Newsweek in 2017 and was named consecutively as one of “The 100 Best-Performing CEOs in the World” by Harvard Business Review from 2015 to 2017. He was awarded an Honorary Fellowship by The Hong Kong Institute of Education (now known as The Education University of Hong Kong) in 2016.Mr. Chan is a Chartered Engineer and Fellow of The Institution of Mechanical Engineers, Fellow of The Hong Kong Institution of Engineers, Fellow of The Institution of Gas Engineers & Managers, Fellow of The Energy Institute and Honorary Fellow of International Institute of Utility Specialists. He is also the Chairman and President of Hong Kong & China Gas Investment Limited, an investment holding company in mainland China and Chairman, Vice Chairman or a director of a number of the project companies in mainland China. He is an Honorary President of The Hong Kong Management Association and a Vice Chairman of China Gas Association. Mr. Chan is a Member of the Standing Committee on Judicial Salaries and Conditions of Service of the Government of the Hong Kong Special Administrative Region. He holds a B.Sc. (Eng) degree and a M.Sc. (Eng) degree from the University of Hong Kong.

CEO Compensation
  • Alfred's compensation has been consistent with company performance over the past year.
  • Alfred's remuneration is about average for companies of similar size in Germany.
Management Team

Alfred Chan

TITLE
MD & Executive Director
COMPENSATION
HK$38M
AGE
67
TENURE
21.9 yrs

Peter Wong

TITLE
COO of Utilities Business & Executive Director
COMPENSATION
HK$16M
AGE
67
TENURE
6.2 yrs

John Ho

TITLE
CFO & Company Secretary
AGE
62

Kit Fan

TITLE
Head of Corporate Human Resources

Philip Siu

TITLE
Chief Operating Officer of New Energy Business

Peter Wong

TITLE
Head of Commercial - Hong Kong Utilities

Simon Hing

TITLE
Head of Engineering - Hong Kong Utilities
Board of Directors Tenure

Average tenure and age of the Hong Kong and China Gas board of directors in years:

22.3
Average Tenure
67
Average Age
  • The average tenure for the Hong Kong and China Gas board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Shau-kee Lee

TITLE
Chairman
COMPENSATION
HK$1,000K
AGE
90
TENURE
36.3 yrs

Alfred Chan

TITLE
MD & Executive Director
COMPENSATION
HK$38M
AGE
67
TENURE
22.3 yrs

Peter Wong

TITLE
COO of Utilities Business & Executive Director
COMPENSATION
HK$16M
AGE
67
TENURE
6.2 yrs

David Li

TITLE
Independent Non-Executive Director
COMPENSATION
HK$700K
AGE
79
TENURE
35.3 yrs

Peter Lee

TITLE
Non-Executive Director
COMPENSATION
HK$300K
AGE
55
TENURE
29.1 yrs

Ka-shing Lee

TITLE
Non-Executive Director
COMPENSATION
HK$300K
AGE
46
TENURE
19.6 yrs

Colin Lam

TITLE
Non-Executive Director
COMPENSATION
HK$400K
AGE
66
TENURE
35.8 yrs

Chung Kwong Poon

TITLE
Independent Non-Executive Director
COMPENSATION
HK$700K
AGE
78
TENURE
9.4 yrs

Moses Cheng

TITLE
Independent Non-Executive Director
AGE
68
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
31. Aug 18 Buy Kwok-Po Li Individual 28. Aug 18 28. Aug 18 680,000 €1.74 €1,179,828
31. Aug 18 Buy Kwok-Po Li Individual 29. Aug 18 29. Aug 18 1,000,000 €1.74 €1,736,156
31. Aug 18 Buy Kwok-Po Li Individual 30. Aug 18 30. Aug 18 600,000 €1.75 €1,048,688
28. Aug 18 Buy Kwok-Po Li Individual 27. Aug 18 27. Aug 18 200,000 €1.74 €347,704
28. Aug 18 Buy Kwok-Po Li Individual 23. Aug 18 23. Aug 18 40,000 €1.73 €69,385
28. Aug 18 Buy Kwok-Po Li Individual 24. Aug 18 24. Aug 18 80,000 €1.72 €137,288
X
Management checks
We assess Hong Kong and China Gas's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hong Kong and China Gas has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

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, and industrial and agricultural waste; and operation of natural gas refilling stations, piped city-gas projects, upstream and midstream developments, water and wastewater treatment projects, energy exploration and utilization ventures, and Aviation fuel facilities. The company operates a pipeline network of 3,600 km gas pipes severing 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 production and distribution, wastewater treatment, industrial wastewater treatment, water reuse, network construction, and purified water businesses serving 1.2 million customers through a pipeline network of approximately 7,000 km. Additionally, the company manufactures polyethylene piping and fittings; and engages in the customers center, café, restaurant, retail sale, 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.

Details
Name: The Hong Kong and China Gas Company Limited
HCG
Exchange: DB
Founded: 1862
HK$32,734,806,241
15,386,411,131
Website: http://www.towngas.com
Address: The Hong Kong and China Gas Company Limited
363 Java Road,
23rd Floor,
North Point,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 3 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
OTCPK HOKC.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB HCG Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SHSC 3 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Jan 1992
SZSC 3 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Jan 1992
OTCPK HOKC.Y SPONSORED ADR Pink Sheets LLC US USD 28. Mar 1991
Number of employees
Current staff
Staff numbers
52,118
Hong Kong and China Gas employees.
Industry
Gas Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 20:48
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/04/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.