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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

2.3%

384

2.0%

HK Gas Utilities

0.3%

HK Market


1 Year Return

34.3%

384

17.0%

HK Gas Utilities

1.3%

HK Market

Return vs Industry: 384 exceeded the Hong Kong Gas Utilities industry which returned 17% over the past year.

Return vs Market: 384 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

384IndustryMarket
7 Day2.3%2.0%0.3%
30 Day9.9%3.7%0.5%
90 Day1.4%-2.5%-4.6%
1 Year36.2%34.3%19.5%17.0%4.9%1.3%
3 Year180.5%168.5%66.2%56.7%15.3%3.7%
5 Year160.3%141.9%45.2%31.8%20.0%-0.006%

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?

20.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 384 (HK$32.7) is trading above our estimate of fair value (HK$20.2)

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 (20.1x) compared to the Gas Utilities industry average (19.9x).

PE vs Market: 384 is poor value based on its PE Ratio (20.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 384 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 384 is overvalued based on its PB Ratio (4.8x) compared to the HK Gas Utilities industry average (1.2x).


Next Steps

Future Growth

How is China Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 384's forecast earnings growth (13.7% per year) is above the savings rate (2%).

Earnings vs Market: 384's earnings (13.7% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 384's revenue (17% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 384's revenue (17% 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 (22.7%)


Next Steps

Past Performance

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

25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 384's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: 384's earnings growth over the past year (34.9%) exceeds its 5-year average (25% per year).

Earnings vs Industry: 384 earnings growth over the past year (34.9%) exceeded the Gas Utilities industry -4.6%.


Return on Equity

High ROE: 384's Return on Equity (22%) is considered high.


Return on Assets

ROA vs Industry: 384 has a higher Return on Assets than the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: 384 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 384's short term assets (HK$41.6B) do not cover its short term liabilities (HK$46.6B)

Long Term Liabilities: 384's short term assets (41.6B) exceeds its long term liabilities (22.5B)


Debt to Equity History and Analysis

Debt Level: 384's debt to equity ratio (93%) is considered high

Reducing Debt: 384's debt to equity ratio has reduced from 109.8% to 93% over the past 5 years.

Debt Coverage: 384's debt is well covered by operating cash flow (26.7%).

Interest Coverage: 384's interest payments on its debt are well covered by EBIT (8.8x 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?

1.35%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.3%markettop25%6.2%industryaverage1.9%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 384's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 384's dividend (1.35%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

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 (27%), 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 (30.2% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Ming Hui Liu (56yo)

7.1yrs

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 ($USD3.41M) is about average for companies of similar size in the Hong Kong market ($USD807.54K).

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


Management Age and Tenure

7.1yrs

Average Tenure

56yo

Average Age

Experienced Management: 384's management team is seasoned and experienced (7.1 years average tenure).


Board Age and Tenure

11.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 384's board of directors are seasoned and experienced ( 11.4 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

SellHK$5,100,000,37811 Sep 19
SK E&S Co., Ltd.
EntityCompany
Shares170,000,000
Max PriceHK$30.00
BuyHK$11,924,00127 Jun 19
Ming Hui Liu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares400,000
Max PriceHK$29.81
BuyHK$7,395,00123 Apr 19
Ming Hui Liu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares300,000
Max PriceHK$24.65
SellHK$27,068,89829 Mar 19
Weiwei Zhu
EntityIndividual
Role
Member of the Board of Directors
Managing VP
Shares1,000,000
Max PriceHK$27.07
SellHK$35,763,54629 Mar 19
Weiwei Zhu
EntityIndividual
Role
Member of the Board of Directors
Managing VP
Shares1,312,000
Max PriceHK$27.26
SellHK$18,583,57029 Mar 19
Weiwei Zhu
EntityIndividual
Role
Member of the Board of Directors
Managing VP
Shares688,000
Max PriceHK$27.01
SellHK$4,991,04022 Mar 19
Sin Yue Wong
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares180,000
Max PriceHK$27.73
SellHK$8,422,49922 Mar 19
Sin Yue Wong
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares300,000
Max PriceHK$28.07
SellHK$7,415,40030 Jan 19
Jinlong Ma
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares290,800
Max PriceHK$25.50
SellHK$4,814,65623 Jan 19
Jinlong Ma
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares188,600
Max PriceHK$25.53
SellHK$6,343,50023 Jan 19
Jinlong Ma
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares250,000
Max PriceHK$25.37
SellHK$3,818,11223 Jan 19
Jinlong Ma
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares146,400
Max PriceHK$26.08
BuyHK$8,369,99903 Dec 18
Ming Hui Liu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares300,000
Max PriceHK$27.90
BuyHK$10,770,00002 Dec 18
Ming Hui Liu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares400,000
Max PriceHK$26.93

Ownership Breakdown


Management Team

  • Jinlong Ma (52yo)

    VP & Executive Director

    • Tenure: 17.1yrs
    • Compensation: HK$4.15m
  • Weiwei Zhu (46yo)

    Managing VP

    • Tenure: 17.1yrs
    • Compensation: HK$6.96m
  • Ming Hui Liu (56yo)

    Executive Chairman

    • Tenure: 7.1yrs
    • Compensation: HK$26.78m
  • En Zhou (62yo)

    Chairman of the Board

    • Tenure: 6.2yrs
  • Ching Li (61yo)

    Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$2.06m
  • Yong Huang (56yo)

    Executive President & Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$25.49m
  • Ngan Lam

    Group General Counsel & Company Secretary

    • Tenure: 4.4yrs

Board Members

  • Yuhua Zhao (52yo)

    Independent Non-Executive Director

    • Tenure: 16.9yrs
    • Compensation: HK$1.08m
  • Jinlong Ma (52yo)

    VP & Executive Director

    • Tenure: 17.1yrs
    • Compensation: HK$4.15m
  • Weiwei Zhu (46yo)

    Managing VP

    • Tenure: 17.1yrs
    • Compensation: HK$6.96m
  • Erwan Mao (56yo)

    Independent Non-Executive Director

    • Tenure: 16.8yrs
    • Compensation: HK$1.08m
  • Ming Hui Liu (56yo)

    Executive Chairman

    • Tenure: 7.1yrs
    • Compensation: HK$26.78m
  • Cynthia Wong (66yo)

    Independent Non-Executive Director

    • Tenure: 16yrs
    • Compensation: HK$1.18m
  • En Zhou (62yo)

    Chairman of the Board

    • Tenure: 6.2yrs
  • Ching Li (61yo)

    Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$2.06m
  • Yong Huang (56yo)

    Executive President & Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$25.49m
  • Yanyan Chen (56yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$986.00k

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$169.864b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:33
End of Day Share Price2019/10/23 00:00
Earnings2019/03/31
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.