The Hong Kong and China Gas Company Limited (0003.HK) stock analysis

In our weekly check, The Hong Kong and China Gas Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6.

About The Hong Kong and China Gas Company Limited

The Hong Kong and China Gas Company Limited is an Utilities company (Regulated Gas) based in Hong Kong, listed on HKSE as 0003.HK.

What our checks show for 0003.HK

Red flags

• Net debt is 4.6x a year of EBITDA (debt/equity 1.05). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.5x): interest is paid from cash or new debt.
• Revenue fell 3.8% a year over the last 3 years.
• The dividend takes 901% of profit: little cushion if profit falls.
• The stock has fallen as much as 68% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 2.4%.

Warning signs

• The gross margin fell by 2.3 points, to 23.9%: costs are rising faster than prices.
• Analysts expect only about 2.1% a year of growth in revenue.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 1.85x net profit: the profit arrives as real cash.
• A large company: market value $17.05 billion.
• The price moves calmly: 17.1% annual volatility.
• Beta 0.56: the stock usually moves less than the market.
• Actively traded: about 28.3 million shares a day.
• Pay in shares is only 1.2% of free cash flow.

Similar companies

2688.HK · ATO · NTGY.MC · NI · SRG.MI · ALA.TO

Questions

What grade does The Hong Kong and China Gas Company Limited (0003.HK) have?

In our weekly check, The Hong Kong and China Gas Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0003.HK stock?

This week's biggest flags for The Hong Kong and China Gas Company Limited: High debt, Weak interest cover, Weak revenue growth. In total 9 of 25 checks show a warning or a red flag.

What does The Hong Kong and China Gas Company Limited do?

The Hong Kong and China Gas Company Limited is an Utilities company (Regulated Gas) based in Hong Kong, listed on HKSE as 0003.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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