SEHK:1600

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.

Snowflake

Fundamentals

Undervalued with solid track record.

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


Market Performance


7 Day Return

-2.0%

1600

2.4%

HK Gas Utilities

2.9%

HK Market


1 Year Return

15.2%

1600

17.9%

HK Gas Utilities

0.7%

HK Market

Return vs Industry: 1600 matched the Hong Kong Gas Utilities industry which returned 17.9% over the past year.

Return vs Market: 1600 exceeded the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1600IndustryMarket
7 Day-2.0%2.4%2.9%
30 Day-5.7%1.1%-2.5%
90 Day-21.9%-4.4%-5.4%
1 Year18.2%15.2%20.3%17.9%4.4%0.7%
3 Year10.9%4.6%65.6%56.1%17.0%5.2%
5 Year-15.0%-19.8%42.3%29.2%20.2%0.2%

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

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

Undervalued: 1600 (HK$7.22) is trading below our estimate of fair value (HK$30.02)

Significantly Undervalued: 1600 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1600 is good value based on its PE Ratio (8.5x) compared to the Gas Utilities industry average (19.5x).

PE vs Market: 1600 is good value based on its PE Ratio (8.5x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1600 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 1600 is overvalued based on its PB Ratio (1.8x) compared to the HK Gas Utilities industry average (1.2x).


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 11 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1600's forecast earnings growth (20% per year) is above the savings rate (2%).

Earnings vs Market: 1600's earnings (20% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 1600's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1600's revenue (16.8% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 1600's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1600's Return on Equity is forecast to be high in 3 years time (25.2%)


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


Past Earnings Growth Analysis

Earnings Trend: 1600's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: 1600's earnings growth over the past year (75.3%) exceeds its 5-year average (24.1% per year).

Earnings vs Industry: 1600 earnings growth over the past year (75.3%) exceeded the Gas Utilities industry -4.6%.


Return on Equity

High ROE: Whilst 1600's Return on Equity (20.56%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: 1600 has a higher Return on Assets than the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: 1600 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 1600's short term assets (CN¥3.6B) exceeds its short term liabilities (CN¥3.2B)

Long Term Liabilities: 1600's short term assets (3.6B) do not cover its long term liabilities (4.5B)


Debt to Equity History and Analysis

Debt Level: 1600's debt to equity ratio (135.2%) is considered high

Reducing Debt: 1600's debt to equity ratio has increased from 101.9% to 135.2% over the past 5 years.

Debt Coverage: 1600's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: 1600's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet

Inventory Level: 1600 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1600'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?

2.35%

Current Dividend Yield


Upcoming Dividend Payment

Purchase China Tian Lun Gas Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%2.2%markettop25%6.3%industryaverage2.0%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1600's dividend (2.35%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1600's dividend (2.35%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

Stable Dividend: Whilst dividend payments have been stable, 1600 has been paying a dividend for less than 10 years.

Growing Dividend: 1600'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%), 1600's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1600's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Zhenyuan Xian (44yo)

4.8yrs

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 ($USD93.25K) is about average for companies of similar size in the Hong Kong market ($USD420.49K).

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


Management Age and Tenure

2.5yrs

Average Tenure

46yo

Average Age

Experienced Management: 1600's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 1600's board of directors are considered experienced (7.4 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

SellCN¥2,886,05316 Apr 19
IFC Asset Management Company, LLC
EntityCompany
Shares324,750
Max PriceCN¥8.89

Ownership Breakdown


Management Team

  • Raymond Tam (55yo)

    Company Secretary

    • Tenure: 0.3yrs
  • Yingcen Zhang (56yo)

    Founder & Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥841.00k
  • Zhenyuan Xian (44yo)

    CEO, GM & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥661.00k
  • Yi Feng (40yo)

    Deputy GM & Executive Director

    • Tenure: 9yrs
    • Compensation: CN¥380.00k
  • Chaoyang Xie (56yo)

    General Manager of Baiyin Natural Gas Company Limited

    • Tenure: 0yrs
    • Compensation: CN¥122.00k
  • Tao Li (47yo)

    Deputy GM & Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥380.00k
  • Min Liu (45yo)

    GM & Executive Director

    • Tenure: 0.3yrs
  • Kevin Qian (35yo)

    Chief Operating Officer

    • Tenure: 0yrs

Board Members

  • Yingcen Zhang (56yo)

    Founder & Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥841.00k
  • Zhenyuan Xian (44yo)

    CEO, GM & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥661.00k
  • Yi Feng (40yo)

    Deputy GM & Executive Director

    • Tenure: 9yrs
    • Compensation: CN¥380.00k
  • Liuqing Li (45yo)

    Independent Non-Executive Director

    • Tenure: 9yrs
    • Compensation: CN¥60.00k
  • Jun Zhao (56yo)

    Independent Non-Executive Director

    • Tenure: 9yrs
    • Compensation: CN¥60.00k
  • Tao Li (47yo)

    Deputy GM & Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥380.00k
  • Min Liu (45yo)

    GM & Executive Director

    • Tenure: 0.3yrs
  • Michael Yeung (64yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥133.00k
  • Jiansheng Wang (63yo)

    Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥132.00k
  • Jin Liu (50yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥77.00k

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: 1600
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$7.397b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:47
End of Day Share Price2019/10/14 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.