The Hong Kong and China Gas Company Limited

$ 6.76 1.20 %

Established in 1862 and headquartered in North Point, Hong Kong, The Hong Kong and China Gas Company Limited operates as a prominent utility and energy provider. The company primarily engages in the production, distribution, and marketing of gas across Hong Kong and Mainland China, supplying town gas to approximately 1.9 million customers. Its product portfolio includes liquefied natural gas, methanol, coal, and various other chemicals. Beyond traditional gas services, the company is actively involved in numerous energy initiatives, such as the conversion and utilization of biomass and agricultural waste, alongside the development of photovoltaic projects and broader energy exploration ventures. It also operates natural gas refilling stations, manages piped city-gas projects, participates in upstream and midstream energy developments, and provides aviation fuel facilities. A substantial part of its business encompasses water services, including water supply and the treatment of domestic sewage and industrial wastewater for about 2.4 million customers. The company further delivers comprehensive engineering and consultancy services, spanning utility installation, infrastructure construction, and civil and building services for both public and private sector projects. Additionally, it manufactures gas meters, metering systems, and polyethylene piping and fittings. In the technology sector, the company provides network connectivity, data center and cloud computing services, coupled with expertise in software development, solution implementation, and systems integration. Its diverse activities also span customer service centers, retail and hospitality ventures (including cafés and restaurants), and laundry services. Furthermore, it engages in the development of automatic meter reading systems, laboratory testing, payment gateway solutions, and project management, complemented by interests in landfill gas initiatives, financing, logistics, oil operations, research and development, property development, and securities investment.

CEO: Ka-Shing Lee - https://www.towngas.com

Price objectif

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Recommandation

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DCF

$ 1.03

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0003.HK vs S&P500

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Quick ratio

0.54

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

22.53

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

0.30

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

9.73 %

indicates low profitability, suggesting that the company is not using equity efficiently to generate profits.

ROIC

4.45 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

5.52

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

1.03

means it relies more on debt, which can increase financial risk.

Free cash flow per share

0.29

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

114.82 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
5 indicates moderate financial health
Altman score
2.19 indicates an uncertain financial situation
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Cash / Debt

Cash Ratio
0.17 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.37 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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