SEHK:384

Stock Analysis Report

Executive Summary

China Gas Holdings Limited, an investment holding company, operates as a gas operator and service provider in the People’s Republic of China and Hong Kong.

Rewards

Earnings are forecast to grow 13.56% per year

Earnings grew by 28.6% over the past year

Pays a reliable dividend of 1.49%

Risk Analysis

Has a high level of debt

Shareholders have been diluted in the past year



Snowflake Analysis

Outstanding track record with reasonable growth potential and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 384 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

384

0.8%

HK Gas Utilities

0.6%

HK Market


1 Year Return

16.1%

384

-1.2%

HK Gas Utilities

-4.5%

HK Market

Return vs Industry: 384 exceeded the Hong Kong Gas Utilities industry which returned -1.1% over the past year.

Return vs Market: 384 exceeded the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

384IndustryMarket
7 Day-0.2%0.8%0.6%
30 Day-6.5%-5.8%-5.2%
90 Day-8.8%-3.4%2.3%
1 Year17.8%16.1%0.8%-1.2%-1.0%-4.5%
3 Year170.1%158.7%60.0%50.7%14.4%2.9%
5 Year166.4%147.1%57.1%42.6%15.5%-3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 384 (HK$29.6) is trading above our estimate of fair value (HK$17.08)

Significantly Below Fair Value: 384 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 384 is poor value based on its PE Ratio (17.1x) compared to the Gas Utilities industry average (16.5x).

PE vs Market: 384 is poor value based on its PE Ratio (17.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 384 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 384 is overvalued based on its PB Ratio (4.3x) compared to the HK Gas Utilities industry average (1.1x).


Next Steps

Future Growth

How is China Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 384's forecast earnings growth (13.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 384's earnings (13.6% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: 384's earnings are forecast to grow, but not significantly.

Revenue vs Market: 384's revenue (14.8% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 384's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 384's Return on Equity is forecast to be high in 3 years time (21.4%)


Next Steps

Past Performance

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

26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 384 has high quality earnings.

Growing Profit Margin: 384's current net profit margins (15.2%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: 384's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: 384's earnings growth over the past year (28.6%) exceeds its 5-year average (26.9% per year).

Earnings vs Industry: 384 earnings growth over the past year (28.6%) exceeded the Gas Utilities industry -4.6%.


Return on Equity

High ROE: 384's Return on Equity (23.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 384's short term assets (HK$40.9B) do not cover its short term liabilities (HK$46.6B).

Long Term Liabilities: 384's short term assets (HK$40.9B) exceed its long term liabilities (HK$23.0B).


Debt to Equity History and Analysis

Debt Level: 384's debt to equity ratio (92.7%) is considered high.

Reducing Debt: 384's debt to equity ratio has reduced from 102.8% to 92.7% over the past 5 years.

Debt Coverage: 384's debt is well covered by operating cash flow (25.2%).

Interest Coverage: 384's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet

Inventory Level: 384 has a high level of physical assets or inventory.

Debt Coverage by Assets: 384's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

1.49%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%2.3%markettop25%6.4%industryaverage2.0%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: 384's dividend (1.49%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 384's dividend (1.49%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 384's dividends per share have been stable in the past 10 years.

Growing Dividend: 384's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.6%), 384's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 384's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Ming Hui Liu (56yo)

7.4yrs

Tenure

HK$26,780,000

Compensation

Mr. Ming Hui Liu serves as the Managing Director of China Gas Holdings Limited. Mr. Liu served as the President of China Gas Holdings Ltd. He served as the Managing Director of China Gas Holdings Ltd. from ...


CEO Compensation Analysis

Compensation vs Market: Ming Hui's total compensation ($USD3.45M) is above average for companies of similar size in the Hong Kong market ($USD1.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ming Hui Liu
Executive Chairman7.4yrsHK$26.78m6.4% HK$10.1b
Si Zhou
Chairman of the Board6.5yrsno datano data
Yong Huang
Executive President & Executive Director6.7yrsHK$25.49m3.22% HK$5.1b
Weiwei Zhu
Managing VP17.4yrsHK$6.96m0.11% HK$180.6m
Ching Li
Executive Director6.1yrsHK$2.06m0.038% HK$60.2m
Ngan Lam
Group General Counsel & Company Secretary4.8yrsno datano data

7.4yrs

Average Tenure

56yo

Average Age

Experienced Management: 384's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ming Hui Liu
Executive Chairman7.4yrsHK$26.78m6.4% HK$10.1b
Si Zhou
Chairman of the Board6.5yrsno datano data
Yong Huang
Executive President & Executive Director6.7yrsHK$25.49m3.22% HK$5.1b
Weiwei Zhu
Managing VP17.4yrsHK$6.96m0.11% HK$180.6m
Ching Li
Executive Director6.1yrsHK$2.06m0.038% HK$60.2m
Yuhua Zhao
Independent Non-Executive Director17.3yrsHK$1.08m0.046% HK$72.2m
Erwan Mao
Independent Non-Executive Director17.1yrsHK$1.08m0.042% HK$66.2m
Sin Yue Wong
Independent Non-Executive Director16.3yrsHK$1.18m0.033% HK$51.8m
Yanyan Chen
Independent Non-Executive Director7.2yrsHK$986.00kno data
Rajeev Mathur
Non-Executive Director1.6yrsHK$248.00kno data

7.0yrs

Average Tenure

56yo

Average Age

Experienced Board: 384's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 384 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 3.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: China Gas Holdings Limited
  • Ticker: 384
  • Exchange: SEHK
  • Founded:
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$157.079b
  • Shares outstanding: 5.22b
  • Website: https://www.chinagasholdings.com.hk

Number of Employees


Location

  • China Gas Holdings Limited
  • Capital Centre
  • 16th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
384SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1996
EBZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1996
CGHO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1996
384SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1996
384SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1996
CGHL.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJun 2012

Biography

China Gas Holdings Limited, an investment holding company, operates as a gas operator and service provider in the People’s Republic of China and Hong Kong. It operates in Sales of Piped Gas, Gas Connection, Engineering Design and Construction, Sales of LPG, Value-Added Services, and Zhongyu Gas segments. The company invests in, constructs, and operates city and town gas pipeline infrastructure facilities, gas terminals, storage and transportation facilities, and gas logistics systems; transmits natural gas and liquefied petroleum gas (LPG) to residential, industrial, and commercial customers; constructs and operates compressed natural gas/liquefied natural gas refilling stations; and develops and applies technologies related to natural gas and LPG in China. It is also involved in the investment in petrochemical facilities of storage and transportation, and fundamental facilities of pier; sale of raw chemical materials and construction materials; producing and storing LPG and chemical products, as well as propane and butane; CBM business; exploration and production of coal bed methane; and gas station construction, management, and consultancy services. In addition, the company offers treasury, management, consultancy, goods transportation, goods transportation agency, technical advisory, IT consulting, and communication systems and computer software sale services. Further, it is involved in the development and investment in clean energy; distribution of city gas and natural gas for vehicle use; construction of long distance natural gas pipeline; and trading of heaters and boilers. Additionally, the company engages in the research, development, wholesale, retail, installation, and maintenance of household equipment, electric appliances, kitchen appliances, and others. As of March 31, 2019, it served 12,407 industrial customers and 199,637 commercial customers; and 29,678,157 residential customers. China Gas Holdings Limited is headquartered in Wan Chai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:36
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.