China Gas Holdings (CGHLY) AI Stock Analysis

• Market Cap: $4.94B
• Dividend Yield: 6.54%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.34
• Revenue Growth: -5.19%
• EPS Growth: 9.01%
• Country: US
• Employees: 70,000
• Sector: Utilities
• Sector Strength: 92
• Industry: Regulated Gas
• EPS (TTM): 1.84
• Shares Outstanding: 217,926,120
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 1.36
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.59
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

China Gas Holdings scores 75, reflecting a solid but cautious investment opportunity. Strong cash flow and attractive valuation metrics are offset by challenges in revenue growth and high leverage. Technical indicators show positive momentum, but investors should be mindful of potential overbought conditions.

China Gas Holdings Business Overview & Revenue Model

Company Description

China Gas Holdings Limited (CGHLY) is a leading gas operator in China, primarily engaged in the investment, construction, and operation of city and town gas pipeline infrastructure, gas terminals, storage and transportation facilities, and gas logistics systems. The company primarily serves residential, industrial, and commercial customers, providing natural gas and liquefied petroleum gas (LPG) services. With a significant presence across numerous provinces in China, China Gas Holdings plays a crucial role in the country's energy sector, focusing on energy efficiency and sustainable development.

How the Company Makes Money

China Gas Holdings generates revenue through its core business segments, which include the sale of piped natural gas, sale of liquefied petroleum gas (LPG), and the provision of construction and installation services related to gas infrastructure. The company earns a substantial portion of its income from long-term gas supply contracts with residential, industrial, and commercial users. Additionally, it engages in the construction of gas pipeline networks and related facilities, which involves charging fees for installation and maintenance services. The company also benefits from various strategic partnerships and joint ventures with local governments and other enterprises, enhancing its market position and expanding its customer base. The growing demand for cleaner energy sources in China further drives China Gas Holdings' business growth and revenue generation.

China Gas Holdings Financial Statement Overview

Summary

China Gas Holdings exhibits a mixed financial performance. Strong cash flow management is a positive, with a 29.8% increase in free cash flow from 2023 to 2024. However, declining revenue and profit margins, coupled with a high leverage position, pose challenges to financial flexibility. The balance sheet indicates potential risks due to a high debt-to-equity ratio of 1.1.

Income Statement

The income statement reflects strong gross profit margins averaging around 13.8% over the recent years, which is a positive signal. However, there is a noticeable decline in revenue from 2023 to 2024, with a negative revenue growth rate of -11.5%. Net profit margins have also been decreasing from 7.4% in 2023 to 3.9% in 2024, indicating potential challenges in cost management or pricing strategies. The EBIT and EBITDA margins indicate solid operational performance, though they have also shown a slight decline in recent years.

Balance Sheet

The balance sheet shows a consistent equity ratio of approximately 36.3% in 2024, suggesting a balanced use of equity in financing. However, the debt-to-equity ratio of approximately 1.1 indicates a high reliance on debt, which poses a leverage risk, especially given the decreasing equity from 2022 to 2024. Return on equity has decreased from 7.4% in 2023 to 5.9% in 2024, reflecting reduced profitability relative to shareholders' equity.

Cash Flow

The company has demonstrated positive free cash flow growth, increasing from 2023 to 2024 by 29.8%, which is a strong indicator of efficient cash management and operational efficiency. The operating cash flow to net income ratio is favorable, reflecting strong cash generation relative to reported earnings, though the free cash flow to net income ratio suggests room for improvement. The cash flow from operations has been consistently positive, supporting the company's liquidity.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
81.41B	91.99B	88.23B	69.98B	59.54B
	Gross Profit
11.30B	12.03B	15.74B	18.10B	17.10B
	EBIT
5.59B	5.08B	13.07B	15.56B	14.12B
	EBITDA
8.50B	10.71B	14.84B	17.65B	15.88B
	Net Income Common Stockholders
3.18B	4.29B	7.66B	10.48B	9.19B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.12B	10.54B	10.12B	8.98B	7.12B
	Total Assets
148.70B	157.29B	163.15B	140.72B	112.07B
	Total Debt
59.24B	61.39B	57.70B	50.70B	39.92B
	Net Debt
51.14B	50.95B	47.69B	42.41B	32.80B
	Total Liabilities
87.95B	92.50B	91.08B	80.86B	66.28B
	Stockholders Equity
53.93B	57.90B	63.58B	51.94B	39.60B
Cash Flow		Free Cash Flow
5.28B	4.07B	867.30M	-71.24M	-640.85M
	Operating Cash Flow
11.34B	10.03B	9.88B	8.28B	6.49B
	Investing Cash Flow
-7.05B	-7.51B	-12.21B	-8.32B	-9.45B
	Financing Cash Flow
-5.86B	-1.41B	3.69B	865.58M	-2.66B

China Gas Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGHLY, the sentiment is Negative. The current price of 20.82 is below the 20-day moving average (MA) of 23.04, below the 50-day MA of 21.99, and below the 200-day MA of 21.23, indicating a bearish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 24.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGHLY.

China Gas Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UGI	76 Outperform	$6.66B	12.19	12.22%	4.83%	-14.01%	―
CGHLY	75 Outperform	$4.94B	12.29	5.56%	6.54%	-5.19%	9.01%
SR	75 Outperform	$4.42B	18.37	7.76%	4.06%	-3.96%	11.40%
OGS	75 Outperform	$4.41B	18.83	7.59%	3.60%	-12.16%	-5.73%
NJR	66 Neutral	$4.80B	14.41	15.15%	3.70%	9.18%	36.67%
Sector *	65 Neutral	$11.66B	15.54	6.23%	4.52%	5.50%	-9.06%
SWX	63 Neutral	$4.95B	24.96	5.84%	3.60%	-5.92%	29.47%