Executive Summary
The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas in Hong Kong and Mainland China.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has Hong Kong and China Gas's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 3 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.4%
3
3.9%
HK Gas Utilities
0.5%
HK Market
1 Year Return
-29.2%
3
-16.4%
HK Gas Utilities
6.6%
HK Market
Return vs Industry: 3 underperformed the Hong Kong Gas Utilities industry which returned -16.4% over the past year.
Return vs Market: 3 underperformed the Hong Kong Market which returned 6.6% over the past year.
Shareholder returns
| 3 | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 3.9% | 0.5% |
| 30 Day | -1.4% | 1.2% | -0.8% |
| 90 Day | -13.7% | -4.5% | 9.4% |
| 1 Year | -27.5%-29.2% | -14.3%-16.4% | 11.0%6.6% |
| 3 Year | 2.7%-3.6% | 19.0%11.5% | 3.2%-7.8% |
| 5 Year | 28.3%15.4% | 55.4%40.1% | 22.5%1.9% |
Price Volatility Vs. Market
How volatile is Hong Kong and China Gas's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Does Hong Kong and China Gas' (HKG:3) CEO Salary Compare Well With The Performance Of The Company?3 weeks ago | Simply Wall St
The Hong Kong and China Gas Company Limited's (HKG:3) Popularity With Investors Under ThreatValuation
Is Hong Kong and China Gas undervalued compared to its fair value and its price relative to the market?
28.57x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 3 (HK$11.2) is trading above our estimate of fair value (HK$6.98)
Significantly Below Fair Value: 3 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 3 is poor value based on its PE Ratio (28.6x) compared to the HK Gas Utilities industry average (13.7x).
PE vs Market: 3 is poor value based on its PE Ratio (28.6x) compared to the Hong Kong market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: 3 is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: 3 is overvalued based on its PB Ratio (3x) compared to the HK Gas Utilities industry average (1.5x).
Next Steps
Future Growth
How is Hong Kong and China Gas forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
6.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3's forecast earnings growth (6.5% per year) is above the savings rate (1.6%).
Earnings vs Market: 3's earnings (6.5% per year) are forecast to grow slower than the Hong Kong market (18.7% per year).
High Growth Earnings: 3's earnings are forecast to grow, but not significantly.
Revenue vs Market: 3's revenue (5.5% per year) is forecast to grow slower than the Hong Kong market (11.4% per year).
High Growth Revenue: 3's revenue (5.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 3's Return on Equity is forecast to be low in 3 years time (12.3%).
Next Steps
Past Performance
How has Hong Kong and China Gas performed over the past 5 years?
3.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3 has high quality earnings.
Growing Profit Margin: 3's current net profit margins (17.1%) are lower than last year (23.8%).
Past Earnings Growth Analysis
Earnings Trend: 3's earnings have grown by 3% per year over the past 5 years.
Accelerating Growth: 3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 3 had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Gas Utilities industry average (11.7%).
Return on Equity
High ROE: 3's Return on Equity (10.8%) is considered low.
Next Steps
Financial Health
How is Hong Kong and China Gas's financial position?
Financial Position Analysis
Short Term Liabilities: 3's short term assets (HK$20.1B) do not cover its short term liabilities (HK$26.2B).
Long Term Liabilities: 3's short term assets (HK$20.1B) do not cover its long term liabilities (HK$38.9B).
Debt to Equity History and Analysis
Debt Level: 3's debt to equity ratio (52.5%) is considered high.
Reducing Debt: 3's debt to equity ratio has reduced from 53% to 52.5% over the past 5 years.
Debt Coverage: 3's debt is well covered by operating cash flow (25%).
Interest Coverage: 3's interest payments on its debt are well covered by EBIT (8.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Hong Kong and China Gas's current dividend yield, its reliability and sustainability?
2.97%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 3's dividend (2.98%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).
High Dividend: 3's dividend (2.98%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.76%).
Stability and Growth of Payments
Stable Dividend: 3's dividends per share have been stable in the past 10 years.
Growing Dividend: 3's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (85%), 3's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 3's dividends in 3 years are forecast to be covered by earnings (80.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.1yrs
Average board tenure
CEO
Alfred Chan (69 yo)
23.25yrs
Tenure
HK$33,900,000
Compensation
Mr. Wing Kin Chan, also known as Alfred, B.B.S., C.Eng., F.H.K.I.E., F.I. Mech.E., F.I.G.E.M., F.E.I., M.Sc. (Eng), B.Sc. (Eng), has been the Managing Director of The Hong Kong And China Gas Company Limite ...
CEO Compensation Analysis
Compensation vs Market: Alfred's total compensation ($USD4.37M) is above average for companies of similar size in the Hong Kong market ($USD853.97K).
Compensation vs Earnings: Alfred's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 23.25yrs | HK$33.90m | 0.0019% HK$ 3.8m | |
| COO of Utilities Business & Executive Director | 7.5yrs | HK$17.20m | no data | |
| Independent Non-Executive Director | 1.58yrs | HK$700.00k | no data | |
| Joint Chairman | 1.25yrs | HK$700.00k | no data | |
| Joint Chairman | 1.25yrs | HK$700.00k | no data | |
| Non-Executive Director | 37.08yrs | HK$400.00k | no data | |
| Independent Non-Executive Director | 36.58yrs | HK$700.00k | 0.30% HK$ 588.8m | |
| Independent Non-Executive Director | 10.75yrs | HK$700.00k | 0.0013% HK$ 2.6m |
9.1yrs
Average Tenure
69yo
Average Age
Experienced Board: 3's board of directors are considered experienced (9.1 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Hong Kong and China Gas Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Hong Kong and China Gas Company Limited
- Ticker: 3
- Exchange: SEHK
- Founded: 1862
- Industry: Gas Utilities
- Sector: Utilities
- Market Cap: HK$199.039b
- Shares outstanding: 17.77b
- Website: https://www.towngas.com
Number of Employees
Location
- The Hong Kong and China Gas Company Limited
- 363 Java Road
- 23rd Floor
- North Point
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HOKC.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Mar 1991 | |
| 3 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| HCG | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| HOKC.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| 3 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| 3 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
Biography
The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas in Hong Kong and Mainland China. It is involved in the provision of liquefied natural gas ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/14 19:20 |
| End of Day Share Price | 2020/08/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.