Financials Towngas Smart Energy Company Limited

Equities

1083

KYG8972T1067

Natural Gas Utilities

Delayed Hong Kong S.E. Other stock markets 09:58:00 2024-04-28 pm EDT			5-day change	1st Jan Change
3.08 ^HKD	+0.98%		+2.67%	-5.23%

Mar. 19	Towngas Smart Energy Company Limited Proposes Final Dividend for the Year Ended 31 December 2023, Payable on 12 July 2024	CI
Mar. 19	Towngas Smart Energy Company Limited Reports Earnings Results for the Full Year Ended December 31, 2023	CI

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	15,502	10,391	21,424	12,732	10,883	10,231	-	-
Enterprise Value (EV) ¹	23,741	19,694	36,767	28,371	25,016	27,195	33,748	31,485
P/E ratio	11.7 x	7.06 x	16.3 x	27.3 x	7.65 x	7.2 x	6.35 x	5.54 x
Yield	2.78%	4.29%	2.21%	3.83%	4.92%	5.18%	5.63%	6.52%
Capitalization / Revenue	1.2 x	0.81 x	1.25 x	0.63 x	0.55 x	0.48 x	0.43 x	0.42 x
EV / Revenue	1.84 x	1.54 x	2.15 x	1.41 x	1.26 x	1.27 x	1.43 x	1.3 x
EV / EBITDA	9.69 x	7.61 x	12.4 x	11.2 x	9.15 x	7.78 x	8.34 x	6.97 x
EV / FCF	-52.7 x	-169 x	-77 x	-14.2 x	-7.41 x	-116 x	53.9 x	116 x
FCF Yield	-1.9%	-0.59%	-1.3%	-7.06%	-13.5%	-0.86%	1.85%	0.86%
Price to Book	0.83 x	0.5 x	0.94 x	0.58 x	0.47 x	0.43 x	0.4 x	0.39 x
Nbr of stocks (in thousands)	2,870,687	2,968,935	3,159,895	3,247,879	3,348,627	3,354,477	-	-
Reference price ²	5.400	3.500	6.780	3.920	3.250	3.050	3.050	3.050
Announcement Date	3/16/20	3/18/21	3/17/22	3/16/23	3/19/24	-	-	-

¹HKD in Million²HKD

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	12,924	12,826	17,125	20,073	19,842	21,483	23,669	24,195
EBITDA ¹	2,449	2,587	2,974	2,531	2,733	3,494	4,044	4,520
EBIT ¹	1,756	1,824	2,106	1,612	1,664	1,966	2,342	2,602
Operating Margin	13.58%	14.22%	12.3%	8.03%	8.39%	9.15%	9.9%	10.75%
Earnings before Tax (EBT) ¹	2,014	2,203	2,145	1,584	2,196	2,067	2,359	2,582
Net income ¹	1,308	1,447	1,253	964.9	1,575	1,453	1,629	1,850
Net margin	10.12%	11.28%	7.32%	4.81%	7.94%	6.76%	6.88%	7.65%
EPS ²	0.4606	0.4956	0.4153	0.1438	0.4247	0.4234	0.4804	0.5510
Free Cash Flow ¹	-450.2	-116.7	-477.2	-2,003	-3,376	-234	626	271.5
FCF margin	-3.48%	-0.91%	-2.79%	-9.98%	-17.01%	-1.09%	2.64%	1.12%
FCF Conversion (EBITDA)	-	-	-	-	-	-	15.48%	6.01%
FCF Conversion (Net income)	-	-	-	-	-	-	38.43%	14.68%
Dividend per Share ²	0.1500	0.1500	0.1500	0.1500	0.1600	0.1580	0.1718	0.1989
Announcement Date	3/16/20	3/18/21	3/17/22	3/16/23	3/19/24	-	-	-

¹HKD in Million²HKD

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2020 S1	2020 S2	2021 S1	2021 S2	2022 S1	2023 S1
Net sales	5,563	7,263	7,773	9,353	-	-
EBITDA	-	-	-	-	-	-
EBIT ¹	-	1,084	1,012	-	-	850.6
Operating Margin	-	14.92%	13.02%	-	-	-
Earnings before Tax (EBT)	-	1,313	-	-	-	-
Net income	580.8	866.4	778.1	475.1	1,042	-
Net margin	10.44%	11.93%	10.01%	5.08%	-	-
EPS	0.2023	0.2933	0.2621	-	-	-
Dividend per Share	-	-	-	-	-	-
Announcement Date	8/13/20	3/18/21	8/17/21	3/17/22	8/16/22	8/14/23

¹HKD in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	8,239	9,303	15,343	15,639	14,132	16,963	23,517	21,254
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	3.365 x	3.596 x	5.16 x	6.18 x	5.17 x	4.855 x	5.815 x	4.702 x
Free Cash Flow ¹	-450	-117	-477	-2,003	-3,376	-234	626	272
ROE (net income / shareholders' equity)	7.51%	7.36%	5.75%	4.35%	7.1%	6.08%	6.62%	7.02%
ROA (Net income/ Total Assets)	3.62%	3.57%	2.58%	1.8%	2.96%	2.7%	2.96%	3.01%
Assets ¹	36,105	40,547	48,564	53,591	53,204	53,765	55,025	61,523
Book Value Per Share ²	6.480	6.980	7.250	6.730	6.930	7.120	7.610	7.830
Cash Flow per Share ²	0.6200	0.7500	0.7500	0.4200	0.3900	0.6800	0.7800	0.9400
Capex ¹	2,203	2,316	2,730	3,342	4,677	5,039	5,020	5,655
Capex / Sales	17.05%	18.06%	15.94%	16.65%	23.57%	23.46%	21.21%	23.37%
Announcement Date	3/16/20	3/18/21	3/17/22	3/16/23	3/19/24	-	-	-

¹HKD in Million²HKD

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Towngas Smart Energy Company Limited

Trading Rating

Investor Rating

ESG Refinitiv

B+

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

3.05 HKD

Average target price

3.629 HKD

Spread / Average Target

+18.98%

Consensus

EPS Revisions

Estimates Revisions

Annual profits - Rate of surprise

Company calendar

Sector Natural Gas Distribution

	1st Jan change	Capi.
TOWNGAS SMART ENERGY COMPANY LIMITED	-6.15%	1.31B
THE HONG KONG AND CHINA GAS CO LTD	0.00%	14.25B
ENN ENERGY HOLDINGS LIMITED	+16.26%	9.6B
KUNLUN ENERGY COMPANY LIMITED	+7.95%	8.41B
ENN NATURAL GAS CO.,LTD.	+5.35%	7.53B
CHINA RESOURCES GAS GROUP LIMITED	-3.52%	7.3B
GRUPO ENERGÍA BOGOTÁ S.A. E.S.P.	+28.95%	5.72B
NEW FORTRESS ENERGY INC.	-28.15%	5.56B
SOUTHWEST GAS HOLDINGS, INC.	+18.39%	5.37B
UGI CORPORATION	+3.17%	5.32B

Natural Gas Distribution