SEHK:3633

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Zhongyu Gas Holdings

Executive Summary

Zhongyu Gas Holdings Limited, an investment holding company, engages in the development, construction, and operation of natural gas projects in the People’s Republic of China.


Snowflake Analysis

Questionable track record with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3633's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

3633

3.8%

HK Gas Utilities

9.1%

HK Market


1 Year Return

-7.0%

3633

-17.1%

HK Gas Utilities

0.9%

HK Market

Return vs Industry: 3633 exceeded the Hong Kong Gas Utilities industry which returned -19% over the past year.

Return vs Market: 3633 underperformed the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

3633IndustryMarket
7 Day2.9%3.8%9.1%
30 Day-0.8%-3.7%8.2%
90 Day28.1%0.5%13.8%
1 Year-5.9%-7.0%-15.2%-17.1%4.6%0.9%
3 Year244.1%237.7%27.1%19.3%13.1%1.4%
5 Year267.5%260.7%41.7%27.9%10.8%-7.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zhongyu Gas Holdings undervalued compared to its fair value and its price relative to the market?

43.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3633 (HK$7.43) is trading above our estimate of fair value (HK$1.76)

Significantly Below Fair Value: 3633 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3633 is poor value based on its PE Ratio (43.9x) compared to the Gas Utilities industry average (15.5x).

PE vs Market: 3633 is poor value based on its PE Ratio (43.9x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3633's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3633 is overvalued based on its PB Ratio (4.1x) compared to the HK Gas Utilities industry average (1.4x).


Next Steps

Future Growth

How is Zhongyu Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.5%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Zhongyu Gas Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Zhongyu Gas Holdings performed over the past 5 years?

28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3633 has high quality earnings.

Growing Profit Margin: 3633's current net profit margins (5.3%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: 3633's earnings have grown significantly by 28.1% per year over the past 5 years.

Accelerating Growth: 3633's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3633 had negative earnings growth (-30.7%) over the past year, making it difficult to compare to the Gas Utilities industry average (6.9%).


Return on Equity

High ROE: 3633's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is Zhongyu Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3633's short term assets (HK$5.6B) do not cover its short term liabilities (HK$7.2B).

Long Term Liabilities: 3633's short term assets (HK$5.6B) do not cover its long term liabilities (HK$7.7B).


Debt to Equity History and Analysis

Debt Level: 3633's debt to equity ratio (202.7%) is considered high.

Reducing Debt: 3633's debt to equity ratio has increased from 150.6% to 202.7% over the past 5 years.

Debt Coverage: 3633's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: 3633's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.35%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 3633's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 3633's dividend (1.35%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.69%).


Stability and Growth of Payments

Stable Dividend: 3633 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3633's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.3%), 3633's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Siu Lui (48yo)

3.75yrs

Tenure

HK$7,418,000

Compensation

Mr. Siu Keung Lui, AHKSA, has been the Chief Executive Officer of Zhongyu Gas Holdings Limited since October 1, 2016 and serves as its Company Secretary. Mr. Lui served as a Joint Managing Director of Zhon ...


CEO Compensation Analysis

Compensation vs Market: Siu's total compensation ($USD957.15K) is above average for companies of similar size in the Hong Kong market ($USD495.05K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wenliang Wang
Chairman of the Boardno dataHK$9.60m28.79% HK$5.6b
Siu Lui
CEO, Company Secretary & Executive Director3.75yrsHK$7.42m0.54% HK$105.1m
Zhaoheng Lu
Executive Director16.08yrsHK$2.38m0.11% HK$22.4m
Yan Li
Executive VP & Executive Director1.42yrsHK$1.62m0.53% HK$104.0m
Kun Jia
VP & Executive Director1.42yrsHK$1.62m0.27% HK$52.3m
Weisong Li
General Manager24.5yrsno datano data

2.6yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 3633's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wenliang Wang
Chairman of the Boardno dataHK$9.60m28.79% HK$5.6b
Siu Lui
CEO, Company Secretary & Executive Director3.75yrsHK$7.42m0.54% HK$105.1m
Zhaoheng Lu
Executive Director16.08yrsHK$2.38m0.11% HK$22.4m
Yan Li
Executive VP & Executive Director1.42yrsHK$1.62m0.53% HK$104.0m
Kun Jia
VP & Executive Director1.42yrsHK$1.62m0.27% HK$52.3m
Yong Luo
Independent Non-Executive Director17yrsHK$250.00k0.038% HK$7.5m
Yongxuan Xu
Vice Chairman16.33yrsHK$250.00kno data
Yu Jie Liu
Independent Non-Executive Director3.08yrsHK$250.00kno data
Chunyan Li
Independent Non Executive Director9.75yrsHK$250.00k0.038% HK$7.5m

11.3yrs

Average Tenure

56yo

Average Age

Experienced Board: 3633's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 3633 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.2%.


Top Shareholders

Company Information

Zhongyu Gas Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhongyu Gas Holdings Limited
  • Ticker: 3633
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$19.625b
  • Shares outstanding: 2.64b
  • Website: https://www.zhongyugas.com

Number of Employees


Location

  • Zhongyu Gas Holdings Limited
  • China Merchants Tower
  • Units 04-06, 28th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3633SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2001
3633SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2001
3633SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2001

Biography

Zhongyu Gas Holdings Limited, an investment holding company, engages in the development, construction, and operation of natural gas projects in the People’s Republic of China. The company is involved in the investment, operation, and management of gas pipeline infrastructure; distribution of piped gas to residential, industrial, and commercial users; operation of compressed natural gas and liquefied natural gas vehicle filling stations; and sale of stoves and related equipment, as well as trading of natural, coal, and liquefied petroleum gas. It also engages in the designing and consulting of energy projects; research and development of natural gas technology; sale of gas equipment and materials; gas pipeline construction; dangerous goods transportation; digital and information technology development; and provision of related consultancy services. The company was formerly known as MRC Holdings Limited and changed its name to Zhongyu Gas Holdings Limited in February 2004. Zhongyu Gas Holdings Limited was incorporated in 2001 and is headquartered in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 12:40
End of Day Share Price2020/07/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.