SEHK:603

Stock Analysis Report

China Oil And Gas Group

Executive Summary

China Oil And Gas Group Limited, an investment holding company, primarily invests in energy related businesses in the People’s Republic of China and Canada.

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

12.3%

603

2.0%

HK Gas Utilities

0.3%

HK Market


1 Year Return

-41.8%

603

17.0%

HK Gas Utilities

1.3%

HK Market

Return vs Industry: 603 underperformed the Hong Kong Gas Utilities industry which returned 17% over the past year.

Return vs Market: 603 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

603IndustryMarket
7 Day12.3%2.0%0.3%
30 Day14.3%3.7%0.5%
90 Day-15.8%-2.5%-4.6%
1 Year-41.2%-41.8%19.5%17.0%4.9%1.3%
3 Year-45.4%-46.7%66.2%56.7%15.3%3.7%
5 Year-70.9%-71.6%45.2%31.8%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Oil And Gas Group undervalued compared to its fair value and its price relative to the market?

0.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 603 (HK$0.32) is trading below our estimate of fair value (HK$0.32)

Significantly Below Fair Value: 603 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 603 is good value based on its PE Ratio (5.9x) compared to the Gas Utilities industry average (19.9x).

PE vs Market: 603 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 603's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 603 is good value based on its PB Ratio (0.5x) compared to the HK Gas Utilities industry average (1.2x).


Next Steps

Future Growth

How is China Oil And Gas Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 603's forecast earnings growth (16.1% per year) is above the savings rate (2%).

Earnings vs Market: 603's earnings (16.1% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 603's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 603's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 603's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 603's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China Oil And Gas Group performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 603's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: 603's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 603 had negative earnings growth (-9.3%) over the past year, making it difficult to compare to the Gas Utilities industry average (-4.6%).


Return on Equity

High ROE: 603's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: 603's Return on Assets is below or equal to the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: 603 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Oil And Gas Group's financial position?


Financial Position Analysis

Short Term Liabilities: 603's short term assets (HK$4.6B) do not cover its short term liabilities (HK$6.5B)

Long Term Liabilities: 603's short term assets (4.6B) exceeds its long term liabilities (3.2B)


Debt to Equity History and Analysis

Debt Level: 603's debt to equity ratio (103.3%) is considered high

Reducing Debt: 603's debt to equity ratio has increased from 75.1% to 103.3% over the past 5 years.

Debt Coverage: 603's debt is well covered by operating cash flow (20.4%).

Interest Coverage: 603's interest payments on its debt are well covered by EBIT (15.7x coverage).


Balance Sheet

Inventory Level: 603 has a high level of physical assets or inventory.

Debt Coverage by Assets: 603's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is China Oil And Gas Group's current dividend yield, its reliability and sustainability?

1.25%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.3%markettop25%6.2%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 603's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 603's dividend (1.25%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 603 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 603 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 603 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 603's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

9.5yrs

Average board tenure


CEO

Tie-liang Xu (55yo)

9.9yrs

Tenure

HK$7,349,000

Compensation

Mr. Tie-liang Xu has been the Chief Executive Officer of China Oil And Gas Group Limited since November 4, 2009 and also has been its Executive Chairman since August 30, 2006. Mr. Xu has 29 years’ experien ...


CEO Compensation Analysis

Compensation vs. Market: Tie-liang's total compensation ($USD937.07K) is about average for companies of similar size in the Hong Kong market ($USD287.57K).

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


Board Age and Tenure

9.5yrs

Average Tenure

55yo

Average Age

Experienced Board: 603's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

Insider Buying: 603 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$455,03603 Sep 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,840,000
Max PriceHK$0.25
BuyHK$510,60602 Sep 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares2,000,000
Max PriceHK$0.26
BuyHK$533,80629 Aug 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares2,000,000
Max PriceHK$0.27
BuyHK$275,90028 Aug 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,000,000
Max PriceHK$0.28
BuyHK$850,49827 Aug 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares3,000,000
Max PriceHK$0.28
BuyHK$723,99715 Jul 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares2,000,000
Max PriceHK$0.36
BuyHK$393,50113 Jun 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,000,000
Max PriceHK$0.39
BuyHK$790,99611 Jun 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares2,000,000
Max PriceHK$0.40
BuyHK$411,09830 May 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,000,000
Max PriceHK$0.41
BuyHK$420,49729 May 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,000,000
Max PriceHK$0.42
BuyHK$407,20428 May 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,000,000
Max PriceHK$0.41
BuyHK$418,19928 May 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,000,000
Max PriceHK$0.42
BuyHK$357,19024 May 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares880,000
Max PriceHK$0.41
BuyHK$404,60023 May 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,000,000
Max PriceHK$0.40
BuyHK$230,40130 Apr 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares480,000
Max PriceHK$0.48
BuyHK$182,39929 Apr 19
Tie-liang Xu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares380,000
Max PriceHK$0.48

Ownership Breakdown


Management Team

  • Stella Chan (48yo)

    Company Secretary

    • Tenure: 14yrs
  • Tie-liang Xu (55yo)

    Executive Chairman & CEO

    • Tenure: 9.9yrs
    • Compensation: HK$7.35m
  • Yijun Guan (55yo)

    VP & Executive Director

    • Tenure: 9.1yrs
    • Compensation: HK$1.31m
  • Jenny Law

    Chief Financial Officer

    • Tenure: 0yrs
  • Chunsun Liu (60yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$1.48m

Board Members

  • Jack Yang (55yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$120.00k
  • Guangtian Wang (55yo)

    Independent Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: HK$120.00k
  • Tie-liang Xu (55yo)

    Executive Chairman & CEO

    • Tenure: 9.9yrs
    • Compensation: HK$7.35m
  • Yunlong Li (67yo)

    Independent Non Executive Director

    • Tenure: 11.5yrs
    • Compensation: HK$120.00k
  • Yijun Guan (55yo)

    VP & Executive Director

    • Tenure: 9.1yrs
    • Compensation: HK$1.31m
  • Chunsun Liu (60yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$1.48m

Company Information

China Oil And Gas Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Oil And Gas Group Limited
  • Ticker: 603
  • Exchange: SEHK
  • Founded:
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$1.636b
  • Shares outstanding: 4.96b
  • Website: https://www.hk603.com

Number of Employees


Location

  • China Oil And Gas Group Limited
  • Sino Plaza
  • Suite 2805
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPI1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1993
603SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 1993
CLSZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1993

Biography

China Oil And Gas Group Limited, an investment holding company, primarily invests in energy related businesses in the People’s Republic of China and Canada. The company operates in three segments: Sales an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:37
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.