OTCPK:CGHL.Y

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

PE ratio (17.7x) is below the US market (18.9x)

Earnings are forecast to grow 5.57% per year

Earnings grew by 28.6% over the past year

Pays a high and reliable dividend of 1.44%

Risk Analysis

Has a high level of debt

Shareholders have been diluted in the past year



Snowflake Analysis

Outstanding track record established dividend payer.

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: CGHL.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

CGHL.Y

2.4%

US Gas Utilities

2.0%

US Market


1 Year Return

24.3%

CGHL.Y

1.1%

US Gas Utilities

23.5%

US Market

Return vs Industry: CGHL.Y exceeded the US Gas Utilities industry which returned 2.3% over the past year.

Return vs Market: CGHL.Y exceeded the US Market which returned 23.2% over the past year.


Shareholder returns

CGHL.YIndustryMarket
7 Day3.5%2.4%2.0%
30 Day11.2%0.1%4.3%
90 Day-1.7%-1.7%12.2%
1 Year25.6%24.3%3.7%1.1%26.1%23.5%
3 Year205.1%194.2%27.0%17.6%53.1%43.2%
5 Yearn/a55.7%36.1%75.5%56.1%

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

No news available

Valuation

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

18.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CGHL.Y ($100) is trading above our estimate of fair value ($49.58)

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


Price To Earnings Ratio

PE vs Industry: CGHL.Y is good value based on its PE Ratio (17.7x) compared to the Gas Utilities industry average (25x).

PE vs Market: CGHL.Y is good value based on its PE Ratio (17.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CGHL.Y is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: CGHL.Y is overvalued based on its PB Ratio (4.4x) compared to the US Gas Utilities industry average (2.3x).


Next Steps

Future Growth

How is China Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGHL.Y's forecast earnings growth (5.6% per year) is above the savings rate (1.7%).

Earnings vs Market: CGHL.Y's earnings (5.6% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: CGHL.Y's revenue (14.8% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CGHL.Y'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: CGHL.Y's Return on Equity is forecast to be high in 3 years time (21.5%)


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: CGHL.Y has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: CGHL.Y earnings growth over the past year (28.6%) exceeded the Gas Utilities industry -8.6%.


Return on Equity

High ROE: CGHL.Y'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: CGHL.Y's short term assets (HK$40.9B) do not cover its short term liabilities (HK$46.6B).

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: CGHL.Y'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?

1.39%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: CGHL.Y's dividend (1.44%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CGHL.Y's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: CGHL.Y's dividends in 3 years are forecast to be well covered by earnings (32% 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?

7.3yrs

Average management tenure


CEO

Ming Hui Liu (56yo)

7.3yrs

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 ($USD3.44M) is below average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

7.3yrs

Average Tenure

56yo

Average Age

Experienced Management: CGHL.Y's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

56yo

Average Age

Experienced Board: CGHL.Y's board of directors are considered experienced (6.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Management Team

  • Weiwei Zhu (46yo)

    Managing VP

    • Tenure: 17.3yrs
    • Compensation: HK$6.96m
  • Ming Hui Liu (56yo)

    Executive Chairman

    • Tenure: 7.3yrs
    • Compensation: HK$26.78m
  • En Zhou (62yo)

    Chairman of the Board

    • Tenure: 6.4yrs
  • Ching Li (61yo)

    Executive Director

    • Tenure: 6yrs
    • Compensation: HK$2.06m
  • Yong Huang (56yo)

    Executive President & Executive Director

    • Tenure: 6.6yrs
    • Compensation: HK$25.49m
  • Ngan Lam

    Group General Counsel & Company Secretary

    • Tenure: 4.7yrs

Board Members

  • Yuhua Zhao (52yo)

    Independent Non-Executive Director

    • Tenure: 17.2yrs
    • Compensation: HK$1.08m
  • Weiwei Zhu (46yo)

    Managing VP

    • Tenure: 17.3yrs
    • Compensation: HK$6.96m
  • Erwan Mao (56yo)

    Independent Non-Executive Director

    • Tenure: 17yrs
    • Compensation: HK$1.08m
  • Ming Hui Liu (56yo)

    Executive Chairman

    • Tenure: 7.3yrs
    • Compensation: HK$26.78m
  • Cynthia Wong (66yo)

    Independent Non-Executive Director

    • Tenure: 16.3yrs
    • Compensation: HK$1.18m
  • En Zhou (62yo)

    Chairman of the Board

    • Tenure: 6.4yrs
  • Ching Li (61yo)

    Executive Director

    • Tenure: 6yrs
    • Compensation: HK$2.06m
  • Yong Huang (56yo)

    Executive President & Executive Director

    • Tenure: 6.6yrs
    • Compensation: HK$25.49m
  • Yanyan Chen (56yo)

    Independent Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: HK$986.00k
  • Rajeev Mathur (59yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$248.00k

Company Information

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


Key Information

  • Name: China Gas Holdings Limited
  • Ticker: CGHL.Y
  • Exchange: OTCPK
  • Founded:
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$165.168b
  • Listing Market Cap: HK$21.251b
  • 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 Analysis2020/01/18 00:24
End of Day Share Price2020/01/17 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.