Obermatt

Hong Kong and China Gas

HKG:3 · HK0003000038
Gas UtilitiesX-Large

360

83
EV / EBIT27
Price / Owner Earnings19
Owner Earnings Yield82
Dividend Yield81
Price/Sales20
EV / Gross Profit60
Price/Book12
Return on Capital47
Cash Return on Capital86
Return on Equity53
EBIT Margin39
Gross Profitability71
Cash Conversion40
Accruals95
Owner Earnings Margin88
Sales growth48
Profit Growth70
Long-Term EPS Growth53
Owner Earnings Growth84
Reinvestment63
Price momentum37
Debt load32
Refinancing36
Debt Payback50
Liquidity42
Analyst ratings46
Opinion Changes50
Price Target Upside49
Market mood53
Value Creation8/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Hong Kong and China Gas clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryHong Kong SAR China
IndustryGas Utilities
SizeX-Large
TypePublic Company
ExchangeSEHK
Founded1982
Employees493
ISINHK0003000038
Last UpdateApr 2, 2026
Themes
Energy ManagementCleanTechSmart EnergyClean EnergyWater PurificationSmart MetersBiomass EnergyEnergy EfficiencySmart Water Networks (SWN)Oil and Gas

Description

The Hong Kong and China Gas Company Limited (Towngas) is a leading energy supplier in Hong Kong and mainland China, focusing on the production, distribution, and sale of gas for domestic and commercial use. The company not only provides town gas but…

Analysis

Quality compounder

The Hong Kong and China Gas Company Limited earns the quality_compounder label: good underlying economics priced fairly, with no obvious bargain or excess.

On valuation, the picture is expensive. The owner-earnings multiple stands at 28.9×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 11% a year, against analyst forecasts of 6%. The gap between price and consensus is worth watching: demanding expectations.

Growth is moderate; the safety picture is sturdy. The company scores 8/20 on our value-creation score: creating some value.

Flags to be aware of: The financial cushion is thinner than comfortable. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
28
2026

All-time high

28

Jun 2026

All-time low

20

Mar 2026

Average rank

24

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
20
Price/Earnings
12
Price/Book
12
Dividend Yield
81
Value (overall)
15

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →