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1600

Tian Lun Gas Holdings SEHK:1600 Stock Report

Last Price

HK$4.58

Market Cap

HK$4.6b

7D

5.8%

1Y

-42.6%

Updated

25 Jun, 2022

Data

Company Financials +
1600 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends2/6

1600 Stock Overview

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.

Tian Lun Gas Holdings Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Tian Lun Gas Holdings
Historical stock prices
Current Share PriceHK$4.58
52 Week HighHK$9.77
52 Week LowHK$4.14
Beta0.90
1 Month Change-6.72%
3 Month Change-20.62%
1 Year Change-42.61%
3 Year Change-48.94%
5 Year Change9.05%
Change since IPO114.02%

Recent News & Updates

May 11
When Should You Buy Tian Lun Gas Holdings Limited (HKG:1600)?

When Should You Buy Tian Lun Gas Holdings Limited (HKG:1600)?

While Tian Lun Gas Holdings Limited ( HKG:1600 ) might not be the most widely known stock at the moment, it saw...

Shareholder Returns

1600HK Gas UtilitiesHK Market
7D5.8%5.0%2.1%
1Y-42.6%-27.2%-23.3%

Return vs Industry: 1600 underperformed the Hong Kong Gas Utilities industry which returned -27.2% over the past year.

Return vs Market: 1600 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1600's price volatile compared to industry and market?
1600 volatility
1600 Average Weekly Movement5.2%
Gas Utilities Industry Average Movement4.8%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 1600 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1600's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20023,012Zhenyuan Xianhttps://www.tianlungas.com

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; trades in natural gas equipment; provides engineering design and consulting, new energy technology development, and gas vehicle refueling services; generates, supplies, and sells electricity; invests in equity and assets; and sells urban gas and gas appliances.

Tian Lun Gas Holdings Fundamentals Summary

How do Tian Lun Gas Holdings's earnings and revenue compare to its market cap?
1600 fundamental statistics
Market CapCN¥3.94b
Earnings (TTM)CN¥1.00b
Revenue (TTM)CN¥7.65b

3.9x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1600 income statement (TTM)
RevenueCN¥7.65b
Cost of RevenueCN¥5.87b
Gross ProfitCN¥1.78b
Other ExpensesCN¥778.45m
EarningsCN¥1.00b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.99
Gross Margin23.26%
Net Profit Margin13.08%
Debt/Equity Ratio114.1%

How did 1600 perform over the long term?

See historical performance and comparison

Dividends

7.2%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1600 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1600?

Other financial metrics that can be useful for relative valuation.

1600 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA5.4x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does 1600's PE Ratio compare to its peers?

1600 PE Ratio vs Peers
The above table shows the PE ratio for 1600 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.7x

Price-To-Earnings vs Peers: 1600 is good value based on its Price-To-Earnings Ratio (3.9x) compared to the peer average (6.7x).


Price to Earnings Ratio vs Industry

How does 1600's PE Ratio compare vs other companies in the Gas Utilities Industry?

Price-To-Earnings vs Industry: 1600 is good value based on its Price-To-Earnings Ratio (3.9x) compared to the Hong Kong Gas Utilities industry average (9.2x)


Price to Earnings Ratio vs Fair Ratio

What is 1600'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.

1600 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.9x
Fair PE Ratio11x

Price-To-Earnings vs Fair Ratio: 1600 is good value based on its Price-To-Earnings Ratio (3.9x) compared to the estimated Fair Price-To-Earnings Ratio (11x).


Share Price vs Fair Value

What is the Fair Price of 1600 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1600 (HK$4.58) is trading below our estimate of fair value (HK$43.14)

Significantly Below Fair Value: 1600 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

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


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Future Growth

How is Tian Lun Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1600's forecast earnings growth (10.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 1600's earnings (10.2% per year) are forecast to grow slower than the Hong Kong market (17% per year).

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

Revenue vs Market: 1600's revenue (13.5% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1600's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1600's Return on Equity is forecast to be low in 3 years time (17.7%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


25.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1600 has high quality earnings.

Growing Profit Margin: 1600's current net profit margins (13.1%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: 1600's earnings have grown significantly by 25.9% per year over the past 5 years.

Accelerating Growth: 1600's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1600 had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Gas Utilities industry average (18.1%).


Return on Equity

High ROE: 1600's Return on Equity (18.6%) is considered low.


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Financial Health

How is Tian Lun Gas Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1600's short term assets (CN¥5.2B) exceed its short term liabilities (CN¥4.6B).

Long Term Liabilities: 1600's short term assets (CN¥5.2B) exceed its long term liabilities (CN¥5.0B).


Debt to Equity History and Analysis

Debt Level: 1600's net debt to equity ratio (95%) is considered high.

Reducing Debt: 1600's debt to equity ratio has reduced from 130.8% to 114.1% over the past 5 years.

Debt Coverage: 1600's debt is not well covered by operating cash flow (6.4%).

Interest Coverage: 1600's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


7.17%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1600's dividend (7.17%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 1600's dividend (7.17%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).


Stability and Growth of Payments

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 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28%), 1600's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 1600 is paying a dividend but the company has no free cash flows.


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Management

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

3.0yrs

Average management tenure


CEO

Zhenyuan Xian (46 yo)

7.42yrs

Tenure

CN¥654,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Zhenyuan's total compensation ($USD97.77K) is below average for companies of similar size in the Hong Kong market ($USD385.50K).

Compensation vs Earnings: Zhenyuan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1600's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: 1600's board of directors are considered experienced (7.1 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

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


Key Information

  • Name: Tian Lun Gas Holdings Limited
  • Ticker: 1600
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Gas Utilities
  • Sector: Utilities
  • Implied Market Cap: HK$4.626b
  • Shares outstanding: 1.01b
  • Website: https://www.tianlungas.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.