DB:TLJ

Stock Analysis Report

China Tian Lun Gas Holdings

Executive Summary

China Tian Lun Gas Holdings Limited, together with its subsidiaries, engages in the transportation, distribution, and sale of natural gas and compressed natural gas through its gas pipeline connections in the People’ Republic of China.

Rewards

Trading at 52.1% below its fair value

Earnings are forecast to grow 19.63% per year

Earnings grew by 75.3% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Undervalued with reasonable growth potential.

Share Price & News

How has China Tian Lun Gas Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TLJ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.3%

TLJ

0.8%

DE Gas Utilities

2.0%

DE Market


1 Year Return

-13.2%

TLJ

8.3%

DE Gas Utilities

15.1%

DE Market

Return vs Industry: TLJ underperformed the German Gas Utilities industry which returned 8% over the past year.

Return vs Market: TLJ underperformed the German Market which returned 15% over the past year.


Shareholder returns

TLJIndustryMarket
7 Day7.3%0.8%2.0%
30 Day4.5%4.0%1.0%
90 Day-1.2%6.1%3.8%
1 Year-10.1%-13.2%13.4%8.3%18.6%15.1%
3 Year7.4%0.5%52.3%31.7%16.8%6.6%
5 Year-3.3%-10.6%58.4%18.4%23.7%6.7%

Price Volatility Vs. Market

How volatile is China Tian Lun Gas Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Tian Lun Gas Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TLJ (€0.81) is trading below our estimate of fair value (€1.68)

Significantly Below Fair Value: TLJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TLJ is good value based on its PE Ratio (8x) compared to the Gas Utilities industry average (16.7x).

PE vs Market: TLJ is good value based on its PE Ratio (8x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: TLJ is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: TLJ is overvalued based on its PB Ratio (1.7x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

How is China Tian Lun Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLJ's forecast earnings growth (19.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: TLJ's earnings (19.6% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: TLJ's earnings are forecast to grow, but not significantly.

Revenue vs Market: TLJ's revenue (16.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: TLJ's revenue (16.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TLJ's Return on Equity is forecast to be high in 3 years time (25%)


Next Steps

Past Performance

How has China Tian Lun Gas Holdings performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLJ has high quality earnings.

Growing Profit Margin: TLJ's current net profit margins (11.9%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: TLJ's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: TLJ's earnings growth over the past year (75.3%) exceeds its 5-year average (24.1% per year).

Earnings vs Industry: TLJ earnings growth over the past year (75.3%) exceeded the Gas Utilities industry 10.6%.


Return on Equity

High ROE: Whilst TLJ's Return on Equity (20.56%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Tian Lun Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TLJ's short term assets (CN¥3.6B) exceed its short term liabilities (CN¥3.2B).

Long Term Liabilities: TLJ's short term assets (CN¥3.6B) do not cover its long term liabilities (CN¥4.5B).


Debt to Equity History and Analysis

Debt Level: TLJ's debt to equity ratio (135.2%) is considered high.

Reducing Debt: TLJ's debt to equity ratio has increased from 101.9% to 135.2% over the past 5 years.

Debt Coverage: TLJ's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: TLJ's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet

Inventory Level: TLJ has a high level of physical assets or inventory.

Debt Coverage by Assets: TLJ's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is China Tian Lun Gas Holdings's current dividend yield, its reliability and sustainability?

3.44%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.3%markettop25%3.6%industryaverage4.9%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: TLJ's dividend (3.44%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: TLJ's dividend (3.44%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TLJ has been paying a dividend for less than 10 years.

Growing Dividend: TLJ's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), TLJ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TLJ's dividends in 3 years are forecast to be well covered by earnings (28.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Zhenyuan Xian (44yo)

5.1yrs

Tenure

CN¥661,000

Compensation

Mr. Xian Zhenyuan has been Chief Executive Officer of China Tian Lun Gas Holdings Limited since January 8, 2015. Mr. Xian has been the General Manager of China Tian Lun Gas Holdings Limited since 2010. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Zhenyuan's total compensation ($USD94.68K) is below average for companies of similar size in the German market ($USD1.15M).

Compensation vs Earnings: Zhenyuan's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yingcen Zhang
Founder & Chairman of the Board0yrsCN¥841.00k6.38% CN¥51.9m
Zhenyuan Xian
CEO, GM & Executive Director5.1yrsCN¥661.00k0.60% CN¥4.9m
Yi Feng
Deputy GM & Executive Director9.3yrsCN¥380.00k0.20% CN¥1.6m
Tao Li
Deputy GM & Executive Director7.8yrsCN¥380.00k0.20% CN¥1.6m
Min Liu
GM & Executive Director0.7yrsno datano data
Yewen Qian
Chief Operating Officer0yrsno datano data
Tak Kei Tam
Company Secretary0.6yrsno datano data
Chaoyang Xie
General Manager of Baiyin Natural Gas Company Limited0yrsCN¥122.00kno data

2.9yrs

Average Tenure

46yo

Average Age

Experienced Management: TLJ's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yingcen Zhang
Founder & Chairman of the Board0yrsCN¥841.00k6.38% CN¥51.9m
Zhenyuan Xian
CEO, GM & Executive Director5.1yrsCN¥661.00k0.60% CN¥4.9m
Yi Feng
Deputy GM & Executive Director9.3yrsCN¥380.00k0.20% CN¥1.6m
Tao Li
Deputy GM & Executive Director7.8yrsCN¥380.00k0.20% CN¥1.6m
Min Liu
GM & Executive Director0.7yrsno datano data
Liuqing Li
Independent Non-Executive Director9.3yrsCN¥60.00kno data
Jun Zhao
Independent Non-Executive Director9.3yrsCN¥60.00kno data
Yui Yuen Yeung
Independent Non-Executive Director4.4yrsCN¥133.00kno data
Jiansheng Wang
Non-Executive Director4.4yrsCN¥132.00kno data
Jin Liu
Independent Non-Executive Director1.8yrsCN¥77.00kno data

7.8yrs

Average Tenure

48.5yo

Average Age

Experienced Board: TLJ's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Tian Lun Gas Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Tian Lun Gas Holdings Limited
  • Ticker: TLJ
  • Exchange: DB
  • Founded: 2002
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$6.847b
  • Listing Market Cap: HK$813.592m
  • Shares outstanding: 999.62m
  • Website: https://www.tianlungas.com

Number of Employees


Location

  • China Tian Lun Gas Holdings Limited
  • Tian Lun Group Building
  • 4th Floor
  • Zhengzhou
  • Henan Province
  • 450003
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1600SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2010
TLJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2010
1600SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2010

Biography

China Tian Lun Gas Holdings Limited, together with its subsidiaries, engages in the transportation, distribution, and sale of natural gas and compressed natural gas through its gas pipeline connections in the People’ Republic of China. The company provides construction, designing, laying, installation, and maintenance services for gas pipeline connections. It also constructs and operates gas filling stations; produces and sells liquefied natural gas in bulk and in cylinders; sells gas equipment; provides engineering design and consulting, and new energy technology development services; trades in natural gas equipment; and invests in equity and assets. The company serves residential customers, commercial and industrial customers, and urban gas distributors. It owns 51 gas refilling stations. The company was founded in 2002 and is headquartered in Zhengzhou, the People’s Republic of China. China Tian Lun Gas Holdings Limited is a subsidiary of Tian Lun Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:45
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.