SEHK:1193

Stock Analysis Report

China Resources Gas Group

Executive Summary

China Resources Gas Group Limited, an investment holding company, engages in the sale of liquefied gas and connection of gas pipelines in the People’s Republic of China and Hong Kong.

Rewards

Trading at 18.8% below its fair value

Earnings are forecast to grow 9.02% per year

Earnings grew by 13% over the past year

Pays a reliable dividend of 1.84%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Adequate balance sheet average dividend payer.

Share Price & News

How has China Resources Gas Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1193 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.3%

1193

-1.3%

HK Gas Utilities

2.2%

HK Market


1 Year Return

26.5%

1193

0.6%

HK Gas Utilities

-0.8%

HK Market

Return vs Industry: 1193 exceeded the Hong Kong Gas Utilities industry which returned 0.6% over the past year.

Return vs Market: 1193 exceeded the Hong Kong Market which returned -0.8% over the past year.


Shareholder returns

1193IndustryMarket
7 Day-6.3%-1.3%2.2%
30 Day-7.1%-7.1%-0.6%
90 Day11.0%-2.5%-0.9%
1 Year29.2%26.5%2.6%0.6%2.8%-0.8%
3 Year94.9%84.1%71.4%61.5%19.5%7.4%
5 Year136.1%116.6%55.3%41.0%20.7%0.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Resources Gas Group undervalued compared to its fair value and its price relative to the market?

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1193 (HK$41.8) is trading below our estimate of fair value (HK$51.5)

Significantly Below Fair Value: 1193 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1193 is poor value based on its PE Ratio (19.2x) compared to the Gas Utilities industry average (17.3x).

PE vs Market: 1193 is poor value based on its PE Ratio (19.2x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1193 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 1193 is overvalued based on its PB Ratio (3.6x) compared to the HK Gas Utilities industry average (1.2x).


Next Steps

Future Growth

How is China Resources Gas Group forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1193's forecast earnings growth (9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1193's earnings (9% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).

High Growth Earnings: 1193's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1193's revenue (10% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 1193's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1193's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has China Resources Gas Group performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1193 has high quality earnings.

Growing Profit Margin: 1193's current net profit margins (8.5%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 1193's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: 1193's earnings growth over the past year (13%) is below its 5-year average (13.8% per year).

Earnings vs Industry: 1193 earnings growth over the past year (13%) exceeded the Gas Utilities industry -4.6%.


Return on Equity

High ROE: 1193's Return on Equity (18.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Resources Gas Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1193's short term assets (HK$28.1B) do not cover its short term liabilities (HK$37.0B).

Long Term Liabilities: 1193's short term assets (HK$28.1B) exceed its long term liabilities (HK$7.8B).


Debt to Equity History and Analysis

Debt Level: 1193's debt to equity ratio (40.9%) is considered high.

Reducing Debt: 1193's debt to equity ratio has reduced from 72.7% to 40.9% over the past 5 years.

Debt Coverage: 1193's debt is well covered by operating cash flow (52.5%).

Interest Coverage: 1193's interest payments on its debt are well covered by EBIT (46.2x coverage).


Balance Sheet

Inventory Level: 1193 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1193's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is China Resources Gas Group's current dividend yield, its reliability and sustainability?

1.84%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.3%markettop25%6.2%industryaverage2.1%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: 1193's dividend (1.84%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1193's dividend (1.84%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.17%).


Stability and Growth of Payments

Stable Dividend: 1193's dividends per share have been stable in the past 10 years.

Growing Dividend: 1193's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.5%), 1193's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1193's dividends in 3 years are forecast to be well covered by earnings (43.8% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Baofeng Shi (46yo)

1.1yrs

Tenure

HK$15,490,186

Compensation

Mr. Baofeng Shi has been Chief Executive Officer and Executive Director at China Resources Gas Group Limited since November 28, 2018. Mr. Shi is currently the Chief Executive Officer of China Resources Gas ...


CEO Compensation Analysis

Compensation vs Market: Baofeng's total compensation ($USD1.98M) is above average for companies of similar size in the Hong Kong market ($USD853.33K).

Compensation vs Earnings: Insufficient data to compare Baofeng's compensation with company performance.


Management Age and Tenure

4.0yrs

Average Tenure

52yo

Average Age

Experienced Management: 1193's management team is considered experienced (4 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 1193's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyHK$29,710,99807 Jun 19
Capital Research and Management Company
EntityCompany
Shares814,000
Max PriceHK$36.50
BuyHK$92,477,83623 Apr 19
Capital Research and Management Company
EntityCompany
Shares2,614,000
Max PriceHK$35.38

Ownership Breakdown

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


Management Team

  • Peter Lo (70yo)

    Secretary

    • Tenure: 2.3yrs
  • Bin Ge (55yo)

    Vice Chairman

    • Tenure: 5.8yrs
    • Compensation: HK$4.36m
  • Baofeng Shi (46yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: HK$15.49m
  • Likun Zhu (52yo)

    Senior Vice President of China Resources Gas (Holdings) Limited

    • Tenure: 5.8yrs
  • Xuwen Qin (57yo)

    Senior Vice President of China Resources Gas (Holdings) Limited

    • Tenure: 5.8yrs
  • Cheng Jie (44yo)

    Senior Vice President of China Resources Gas (Holdings) Limited

    • Tenure: 5.8yrs
  • Joshua Li (41yo)

    Chief Financial Officer

    • Tenure: 2.3yrs

Board Members

  • David Yu (71yo)

    Independent Non-Executive Director

    • Tenure: 7yrs
    • Compensation: HK$180.00k
  • Ying Chen (48yo)

    Non-Executive Director

    • Tenure: 7.5yrs
  • Tak Wong (68yo)

    Independent Non-Executive Director

    • Tenure: 21.9yrs
    • Compensation: HK$180.00k
  • Chuandong Wang (55yo)

    Non-Executive Chairman of the Board

    • Tenure: 7.5yrs
  • Bin Ge (55yo)

    Vice Chairman

    • Tenure: 5.8yrs
    • Compensation: HK$4.36m
  • Baofeng Shi (46yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: HK$15.49m
  • Yan Wang (47yo)

    Non-Executive Director

    • Tenure: 5.3yrs
  • George Yang (55yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$74.00k
  • Shiqing Jing (38yo)

    Non-Executive Director

    • Tenure: 1.3yrs
  • Suet Fei Wan (42yo)

    Non-Executive Director

    • Tenure: 1.3yrs

Company Information

China Resources Gas Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Resources Gas Group Limited
  • Ticker: 1193
  • Exchange: SEHK
  • Founded:
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$92.964b
  • Shares outstanding: 2.22b
  • Website: https://www.crcgas.com

Number of Employees


Location

  • China Resources Gas Group Limited
  • China Resources Building
  • Room 1901-02
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGX1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1994
1193SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1994
1193SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1994
1193SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1994
CRGG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1994
CGAS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDAug 2012

Biography

China Resources Gas Group Limited, an investment holding company, engages in the sale of liquefied gas and connection of gas pipelines in the People’s Republic of China and Hong Kong. It operates through S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 12:39
End of Day Share Price2019/12/11 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.