Board Change • May 20
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Non-Executive Director Christine Loh was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Mar 18
Towngas Smart Energy Company Limited, Annual General Meeting, May 27, 2026 Towngas Smart Energy Company Limited, Annual General Meeting, May 27, 2026. Announcement • Mar 07
Towngas Smart Energy Company Limited to Report Fiscal Year 2025 Results on Mar 18, 2026 Towngas Smart Energy Company Limited announced that they will report fiscal year 2025 results on Mar 18, 2026 Announcement • Aug 06
Towngas Smart Energy Company Limited to Report First Half, 2025 Results on Aug 15, 2025 Towngas Smart Energy Company Limited announced that they will report first half, 2025 results on Aug 15, 2025 Announcement • Mar 17
Towngas Smart Energy Company Limited Proposes Special Dividend for the Year Ended 31 December 2024, Payable on July 14, 2025 Towngas Smart Energy Company Limited proposed special dividend of HKD 0.03 per share for the financial year end 31 December 2024. Date of shareholders' approval 29 May 2025. Ex-dividend date 02 June 2025, Record date 06 June 2025 and Payment date 14 July 2025. Announcement • Mar 04
Towngas Smart Energy Company Limited to Report Fiscal Year 2024 Results on Mar 14, 2025 Towngas Smart Energy Company Limited announced that they will report fiscal year 2024 results on Mar 14, 2025 Reported Earnings • Aug 18
First half 2024 earnings released: EPS: HK$0.22 (vs HK$0.34 in 1H 2023) First half 2024 results: EPS: HK$0.22 (down from HK$0.34 in 1H 2023). Revenue: HK$10.5b (up 6.3% from 1H 2023). Net income: HK$742.7m (down 33% from 1H 2023). Profit margin: 7.1% (down from 11% in 1H 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Gas Utilities industry in Europe. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 15% per year. Announcement • Aug 05
Towngas Smart Energy Company Limited to Report First Half, 2024 Results on Aug 15, 2024 Towngas Smart Energy Company Limited announced that they will report first half, 2024 results on Aug 15, 2024 New Risk • Jul 13
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.6x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (4.1% increase in shares outstanding). Announcement • May 30
Towngas Smart Energy Company Limited Approves Final Dividend of the Year Ended 31 December 2023 Towngas Smart Energy Company Limited at its AGM held on May 29, 2024 approved final dividend of 16 HK cents per share from the share premium account of the Company in respect of the year ended 31 December 2023 with an option for scrip dividend. Upcoming Dividend • May 24
Upcoming dividend of HK$0.16 per share Eligible shareholders must have bought the stock before 31 May 2024. Payment date: 12 July 2024. Payout ratio is a comfortable 34% but the company is not cash flow positive. Trailing yield: 5.1%. Within top quartile of German dividend payers (4.6%). Lower than average of industry peers (6.5%). Buy Or Sell Opportunity • May 21
Now 20% undervalued Over the last 90 days, the stock has risen 11% to €0.36. The fair value is estimated to be €0.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has declined by 13%. For the next 3 years, revenue is forecast to grow by 6.8% per annum. Earnings are also forecast to grow by 5.8% per annum over the same time period. Buy Or Sell Opportunity • Apr 16
Now 21% undervalued Over the last 90 days, the stock has risen 1.7% to €0.35. The fair value is estimated to be €0.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has declined by 13%. For the next 3 years, revenue is forecast to grow by 7.1% per annum. Earnings are also forecast to grow by 5.5% per annum over the same time period. Declared Dividend • Mar 21
Dividend of HK$0.16 announced Shareholders will receive a dividend of HK$0.16. Ex-date: 31st May 2024 Payment date: 12th July 2024 Dividend yield will be 45%, which is higher than the industry average of 4.4%. Sustainability & Growth Dividend is covered by earnings (34% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 12% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 20
Towngas Smart Energy Company Limited, Annual General Meeting, May 29, 2024 Towngas Smart Energy Company Limited, Annual General Meeting, May 29, 2024. Reported Earnings • Mar 20
Full year 2023 earnings released: EPS: HK$0.48 (vs HK$0.30 in FY 2022) Full year 2023 results: EPS: HK$0.48 (up from HK$0.30 in FY 2022). Revenue: HK$19.8b (down 1.2% from FY 2022). Net income: HK$1.57b (up 63% from FY 2022). Profit margin: 7.9% (up from 4.8% in FY 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Gas Utilities industry in Europe. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 8% per year. Announcement • Mar 08
Towngas Smart Energy Company Limited to Report Fiscal Year 2023 Results on Mar 19, 2024 Towngas Smart Energy Company Limited announced that they will report fiscal year 2023 results on Mar 19, 2024 New Risk • Aug 15
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 76% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.3x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.2% net profit margin). Shareholders have been diluted in the past year (3.0% increase in shares outstanding). Reported Earnings • Aug 15
First half 2023 earnings released: EPS: HK$0.34 (vs HK$0.33 in 1H 2022) First half 2023 results: EPS: HK$0.34 (up from HK$0.33 in 1H 2022). Revenue: HK$9.88b (down 2.7% from 1H 2022). Net income: HK$1.12b (up 7.1% from 1H 2022). Profit margin: 11% (up from 10% in 1H 2022). Revenue is forecast to grow 10% p.a. on average during the next 3 years, while revenues in the Gas Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Aug 03
Towngas Smart Energy Company Limited to Report First Half, 2023 Results on Aug 14, 2023 Towngas Smart Energy Company Limited announced that they will report first half, 2023 results on Aug 14, 2023 Announcement • Jun 23
Towngas Smart Energy Company Limited (SEHK:1083) entered into the Transfer Agreement to acquire Towngas Renewable Energy (HK) Company Limited from The Hong Kong and China Gas Company Limited (SEHK:3) Towngas Smart Energy Company Limited (SEHK:1083) entered into the Transfer Agreement to acquire Towngas Renewable Energy (HK) Company Limited from The Hong Kong and China Gas Company Limited (SEHK:3) on June 21, 2023. In related transaction the loan owing to the HKCG Group by Towngas Renewable Energy (HK) is also getting acquired by Towngas Smart Energy Company Limited. The Combined consideration being paid is HKD 27.5 million. Towngas Renewable Energy (HK) Company Limited reported a Net loss of HKD 0.67 million and Net Liabilities of HKD 2.5 million in December 31, 2022. Announcement • May 26
Towngas Smart Energy Company Limited Approves Payment of a Final Dividend in Respect of the Year Ended 31 December 2022 Towngas Smart Energy Company Limited approved payment of a final dividend of 15 Hong Kong cents per share from the share premium account of the Company in respect of the year ended 31 December 2022 with an option for scrip dividend, at its AGM held on May 25, 2023. Upcoming Dividend • May 23
Upcoming dividend of HK$0.15 per share at 4.0% yield Eligible shareholders must have bought the stock before 30 May 2023. Payment date: 11 July 2023. Payout ratio is a comfortable 50% but the company is not cash flow positive. Trailing yield: 4.0%. Lower than top quartile of German dividend payers (4.7%). Lower than average of industry peers (4.6%). Reported Earnings • Mar 17
Full year 2022 earnings released: EPS: HK$0.30 (vs HK$0.41 in FY 2021) Full year 2022 results: EPS: HK$0.30 (down from HK$0.41 in FY 2021). Revenue: HK$20.1b (up 17% from FY 2021). Net income: HK$964.9m (down 23% from FY 2021). Profit margin: 4.8% (down from 7.3% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 1.4% decline forecast for the Gas Utilities industry in Europe. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Non-Executive Director Christine Loh was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Sep 09
Towngas China Co Ltd Unsponsored ADR to Be Deleted from OTC Equity Towngas China Co Ltd. Unsponsored ADR (Cayman Island) will be deleted from OTC Equity effective from September 09, 2022, due to ADR /GDR Program Terminated. Reported Earnings • Aug 18
First half 2022 earnings released: EPS: HK$0.33 (vs HK$0.26 in 1H 2021) First half 2022 results: EPS: HK$0.33 (up from HK$0.26 in 1H 2021). Revenue: HK$10.2b (up 31% from 1H 2021). Net income: HK$1.04b (up 34% from 1H 2021). Profit margin: 10% (in line with 1H 2021). Over the next year, revenue is forecast to grow 8.6% compared to a 15% decline forecast for the Gas Utilities industry in Germany. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • Aug 06
Towngas Smart Energy Company Limited to Report First Half, 2022 Results on Aug 16, 2022 Towngas Smart Energy Company Limited announced that they will report first half, 2022 results on Aug 16, 2022 Upcoming Dividend • May 23
Upcoming dividend of HK$0.15 per share Eligible shareholders must have bought the stock before 30 May 2022. Payment date: 12 July 2022. Payout ratio is a comfortable 36% but the company is not cash flow positive. Trailing yield: 3.9%. Lower than top quartile of German dividend payers (4.3%). Lower than average of industry peers (5.0%). Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Non-Executive Director Christine Kung Wai was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 05
Towngas Smart Energy Company Limited Appoints Loh Kung Wai Christine as an Independent Non-Executive Director and Member of Each of the Nomination Committee, Remuneration Committee and Environmental, Social and Governance Committee The board of directors of Towngas Smart Energy Company Limited announced that Dr. Loh Kung Wai Christine (‘Dr. Loh’) has been appointed as an Independent Non-Executive Director of the company and a member of each of the Nomination Committee, Remuneration Committee and Environmental, Social and Governance Committee of the Company, all with effect from 4 April 2022. Dr. Loh is the Chief Development Strategist at the Institute for the Environment of the Hong Kong University of Science and Technology. She is also a Senior Advisor to Teneo and board of the Hong Kong Science and Technology Parks. She is also a director and trustee of CDP Worldwide; and a director of New Forests Proprietary Limited. Reported Earnings • Mar 18
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: HK$0.41 (down from HK$0.50 in FY 2020). Revenue: HK$17.1b (up 34% from FY 2020). Net income: HK$1.25b (down 13% from FY 2020). Profit margin: 7.3% (down from 11% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 17% compared to a 2.9% decline forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 21
First half 2021 earnings released: EPS HK$0.26 (vs HK$0.20 in 1H 2020) The company reported a solid first half result with improved earnings and revenues, although profit margins were flat. First half 2021 results: Revenue: HK$7.77b (up 40% from 1H 2020). Net income: HK$778.1m (up 34% from 1H 2020). Profit margin: 10.0% (in line with 1H 2020). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • May 28
Towngas China Company Limited Approves Payment of Final Dividend in Respect of the Year Ended December 31, 2020 Towngas China Company Limited approved payment of final dividend of HK 15 cents per share from the share premium account of the Company in respect of the year ended December 31, 2020 with an option for scrip dividend at the Annual General Meeting held on May 27, 2021. Upcoming Dividend • May 24
Upcoming dividend of HK$0.15 per share Eligible shareholders must have bought the stock before 31 May 2021. Payment date: 13 July 2021. Trailing yield: 2.9%. Lower than top quartile of German dividend payers (3.2%). Lower than average of industry peers (6.0%). Reported Earnings • Apr 18
Full year 2020 earnings released: EPS HK$0.50 (vs HK$0.46 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: HK$12.8b (flat on FY 2019). Net income: HK$1.45b (up 11% from FY 2019). Profit margin: 11% (up from 10% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 19
Full year 2020 earnings released The company reported a decent full year result with improved earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: HK$12.8b (flat on FY 2019). Net income: HK$1.45b (up 11% from FY 2019). Profit margin: 11% (up from 10% in FY 2019). Announcement • Mar 09
Towngas China Company Limited to Report Fiscal Year 2020 Results on Mar 18, 2021 Towngas China Company Limited announced that they will report fiscal year 2020 results on Mar 18, 2021 Is New 90 Day High Low • Jan 30
New 90-day low: €0.33 The company is down 8.0% from its price of €0.36 on 30 October 2020. The German market is up 20% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Gas Utilities industry, which is up 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €1.27 per share. Is New 90 Day High Low • Jan 07
New 90-day low: €0.33 The company is down 7.0% from its price of €0.36 on 09 October 2020. The German market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Gas Utilities industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €1.26 per share. Is New 90 Day High Low • Dec 03
New 90-day high: €0.39 The company is up 13% from its price of €0.34 on 04 September 2020. The German market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Gas Utilities industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €0.32 per share. Is New 90 Day High Low • Sep 22
New 90-day low: €0.34 The company is down 13% from its price of €0.39 on 24 June 2020. The German market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Gas Utilities industry, which is down 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €0.30 per share. Announcement • Aug 04
Towngas China Company Limited to Report First Half, 2020 Results on Aug 13, 2020 Towngas China Company Limited announced that they will report first half, 2020 results on Aug 13, 2020