SEHK:6828

Stock Analysis Report

Beijing Gas Blue Sky Holdings

Executive Summary

Beijing Gas Blue Sky Holdings Limited, an investment holding company, engages in the sale and distribution of natural gas and other related products in the People’s Republic of China.

Rewards

Trading at 85.1% below its fair value

Earnings grew by 704.3% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6828 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

6828

2.5%

HK Gas Utilities

3.7%

HK Market


1 Year Return

-18.5%

6828

4.3%

HK Gas Utilities

2.4%

HK Market

Return vs Industry: 6828 underperformed the Hong Kong Gas Utilities industry which returned 4.3% over the past year.

Return vs Market: 6828 underperformed the Hong Kong Market which returned 2.4% over the past year.


Shareholder returns

6828IndustryMarket
7 Day0%2.5%3.7%
30 Day-2.6%-1.3%4.2%
90 Day-0.5%0.06%1.7%
1 Year-18.5%-18.5%6.5%4.3%6.0%2.4%
3 Year-68.9%-68.9%78.7%68.4%25.6%12.9%
5 Year-49.3%-49.3%58.7%44.1%23.2%2.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Beijing Gas Blue Sky Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6828 (HK$0.19) is trading below our estimate of fair value (HK$1.27)

Significantly Below Fair Value: 6828 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6828 is good value based on its PE Ratio (7.7x) compared to the Gas Utilities industry average (17.4x).

PE vs Market: 6828 is good value based on its PE Ratio (7.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6828's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6828 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 Beijing Gas Blue Sky Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.8%

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 Beijing Gas Blue Sky 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 Beijing Gas Blue Sky Holdings performed over the past 5 years?

61.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6828 has high quality earnings.

Growing Profit Margin: 6828's current net profit margins (9.9%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: 6828 has become profitable over the past 5 years, growing earnings by 61.9% per year.

Accelerating Growth: 6828's earnings growth over the past year (704.3%) exceeds its 5-year average (61.9% per year).

Earnings vs Industry: 6828 earnings growth over the past year (704.3%) exceeded the Gas Utilities industry -4.6%.


Return on Equity

High ROE: 6828's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beijing Gas Blue Sky Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6828's short term assets (HK$2.1B) exceed its short term liabilities (HK$2.1B).

Long Term Liabilities: 6828's short term assets (HK$2.1B) exceed its long term liabilities (HK$1.6B).


Debt to Equity History and Analysis

Debt Level: 6828's debt to equity ratio (49.4%) is considered high.

Reducing Debt: 6828's debt to equity ratio has increased from 7% to 49.4% over the past 5 years.

Debt Coverage: 6828's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: 6828's interest payments on its debt are not well covered by EBIT (0.1x coverage).


Balance Sheet

Inventory Level: 6828 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6828's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Beijing Gas Blue Sky Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.2%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 6828's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6828's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6828's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6828's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6828 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 6828'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 Beijing Gas Blue Sky Holdings's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average board tenure


CEO

Tommy Cheng (45yo)

1.9yrs

Tenure

HK$4,000,000

Compensation

Mr. Ming Kit Cheng, also known as Tommy, served as the Chief Executive Officer of New Times Energy Corporation Limited from March 6, 2012 to August 19, 2015. Mr. Cheng has been Chief Executive Officer at B ...


CEO Compensation Analysis

Compensation vs Market: Tommy's total compensation ($USD513.19K) is above average for companies of similar size in the Hong Kong market ($USD334.91K).

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


Board Age and Tenure

4.3yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 6828's board of directors are considered experienced (4.3 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

BuyHK$90,28824 Dec 18
Ming Kit Cheng
EntityIndividual
Role
Chief Executive Officer
Co-Chairman of the Board & CEO
Shares432,000
Max PriceHK$0.21

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.7%.


Management Team

  • Edward Siew (46yo)

    Financial Controller & Company Secretary

    • Tenure: 4.3yrs
  • Tommy Cheng (45yo)

    Co-Chairman of the Board & CEO

    • Tenure: 1.9yrs
    • Compensation: HK$4.00m
  • Tao Hung (54yo)

    Project Director & Executive Director

    • Tenure: 6.2yrs
    • Compensation: HK$840.00k
  • Lianming Bai (41yo)

    Chief Engineer

    • Tenure: 0yrs
  • Guangfeng Li (50yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • Qiang Xue (39yo)

    Senior Vice President

    • Tenure: 0yrs
  • Qiang Jin (49yo)

    Executive Director

    • Tenure: 0.3yrs

Board Members

  • Piew Wee (55yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: HK$212.00k
  • Siang Kai Lim (63yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: HK$296.00k
  • Tommy Cheng (45yo)

    Co-Chairman of the Board & CEO

    • Tenure: 1.9yrs
    • Compensation: HK$4.00m
  • Arthur Ma (50yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$120.00k
  • Tao Hung (54yo)

    Project Director & Executive Director

    • Tenure: 6.2yrs
    • Compensation: HK$840.00k
  • Xiaoye Zhi (51yo)

    Co-Chairman of the Board

    • Tenure: 3.6yrs
  • Siu Yin Pang (60yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$120.00k
  • Qiang Jin (49yo)

    Executive Director

    • Tenure: 0.3yrs

Company Information

Beijing Gas Blue Sky Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beijing Gas Blue Sky Holdings Limited
  • Ticker: 6828
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$2.467b
  • Shares outstanding: 12.99b
  • Website: https://www.bgbluesky.com

Number of Employees


Location

  • Beijing Gas Blue Sky Holdings Limited
  • New World Tower 1
  • Room 1411
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6828SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2007
6828SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2007
6828SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2007

Biography

Beijing Gas Blue Sky Holdings Limited, an investment holding company, engages in the sale and distribution of natural gas and other related products in the People’s Republic of China. It operates through t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:59
End of Day Share Price2019/12/13 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.