The Hong Kong and China Gas Company Limited

DB:HCG Stock Report

Market Cap: €13.7b

Hong Kong and China Gas Valuation

Is HCG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HCG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€0.71
Fair Value
5.3% overvalued intrinsic discount
10
Number of Analysts

Below Fair Value: HCG (€0.75) is trading above our estimate of fair value (€0.71)

Significantly Below Fair Value: HCG is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HCG?

Key metric: As HCG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HCG. This is calculated by dividing HCG's market cap by their current earnings.
What is HCG's PE Ratio?
PE Ratio20.2x
EarningsHK$5.50b
Market CapHK$111.21b

Price to Earnings Ratio vs Peers

How does HCG's PE Ratio compare to its peers?

The above table shows the PE ratio for HCG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.3x
EBK EnBW Energie Baden-Württemberg
27.2xn/a€17.0b
RWE RWE
7.5x-5.2%€21.7b
EOAN E.ON
15.8x8.3%€28.9b
LEC Lechwerke
26.7xn/a€2.6b
HCG Hong Kong and China Gas
20.2x8.6%€111.2b

Price-To-Earnings vs Peers: HCG is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the peer average (19.3x).

Price to Earnings Ratio vs Industry

How does HCG's PE Ratio compare vs other companies in the Global Gas Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HCG 20.2xIndustry Avg. 13.8xNo. of Companies15PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HCG is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the Global Gas Utilities industry average (13.8x).

Price to Earnings Ratio vs Fair Ratio

What is HCG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HCG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.2x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: HCG is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HCG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.75
€0.82
+9.4%
8.9%€0.96€0.74n/a10
Jan ’26€0.75
€0.83
+11.2%
9.2%€0.96€0.74n/a10
Dec ’25€0.69
€0.84
+21.8%
9.5%€0.94€0.68n/a11
Nov ’25€0.69
€0.79
+14.5%
9.0%€0.88€0.65n/a10
Oct ’25€0.71
€0.79
+10.8%
9.0%€0.88€0.65n/a10
Sep ’25€0.72
€0.78
+8.7%
9.4%€0.88€0.65n/a9
Aug ’25€0.75
€0.77
+2.6%
9.3%€0.90€0.66n/a9
Jul ’25€0.68
€0.76
+12.3%
9.7%€0.90€0.66n/a9
Jun ’25€0.70
€0.76
+8.6%
9.7%€0.90€0.66n/a9
May ’25€0.69
€0.75
+8.0%
7.9%€0.82€0.66n/a8
Apr ’25€0.69
€0.75
+9.2%
8.5%€0.83€0.67n/a7
Mar ’25€0.70
€0.71
+1.4%
6.8%€0.79€0.65n/a7
Feb ’25€0.64
€0.68
+6.1%
3.5%€0.71€0.65n/a6
Jan ’25€0.67
€0.68
+1.3%
3.5%€0.71€0.65€0.756
Dec ’24€0.60
€0.68
+12.2%
3.5%€0.71€0.65€0.696
Nov ’24€0.65
€0.74
+14.2%
9.1%€0.85€0.66€0.694
Oct ’24€0.64
€0.79
+23.9%
11.4%€0.91€0.66€0.715
Sep ’24€0.66
€0.78
+18.6%
9.9%€0.89€0.65€0.726
Aug ’24€0.76
€0.82
+8.6%
9.4%€0.91€0.70€0.757
Jul ’24€0.78
€0.82
+6.3%
8.9%€0.90€0.69€0.687
Jun ’24€0.82
€0.82
-0.1%
8.9%€0.90€0.69€0.707
May ’24€0.79
€0.81
+3.7%
10.2%€0.90€0.69€0.697
Apr ’24€0.79
€0.87
+9.5%
12.3%€1.06€0.71€0.698
Mar ’24€0.86
€0.92
+6.7%
17.1%€1.24€0.69€0.709
Feb ’24€0.91
€0.92
+2.0%
17.1%€1.24€0.69€0.649
Jan ’24€0.88
€0.98
+12.0%
17.3%€1.27€0.70€0.678
Analyst Price Target
Consensus Narrative from 10 Analysts
€0.84
Fair Value
10.7% undervalued intrinsic discount
10
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/22 03:29
End of Day Share Price 2025/01/22 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

The Hong Kong and China Gas Company Limited is covered by 32 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Peter YaoBOCI Research Ltd.
Cho Ming LauBOCI Research Ltd.
Ahmad HalimCFRA Equity Research