Hong Kong and China Gas (0003.HK) After the performance dropped by 14%, the financial media blamed it for not giving out bonus shares. This reason is very easy to admit, but is this the real situation?
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As a public utility stock in Hong Kong, the valuation of Gas Co., Ltd. has always been on the high side. The most popular among shareholders is that the fourth uncle, Li Shau Kee, likes to distribute bonus shares. It was resumed in 2009, suspended again in 2009, resumed in 2010, and suspended again until today in 2022. Since 1998, it has been customary to use ten to get one bonus share. After two suspensions and then resumed, both continue to use ten. Get one free, until 2020, it will be changed to twenty free one.
If investors have received bonus shares, they actually understand the gameplay. Whether it is 10 get 1 or 5 get 1, the stock price will be adjusted according to the distribution ratio after deduction. There are 20 shares at 20 yuan, which becomes 21 shares at 19.04 yuan, and the value has not changed. , it’s just the difference between the left pocket and the right pocket. In the past, Coal Gas distributed bonus shares, and the minority shareholders were so happy. The point is that the price of Gas Co , the number of shares in the hands of small shareholders is increasing year by year, and the stock price is increasing year by year, of course, smiling.
Profits regress into a dead end
Looking at the records, the gas earned 4.3 billion yuan in 2008, and it has risen to 9.3 billion yuan in 2018. In these ten years, only one year has recorded a setback. However, the setback in 2013 was also due to the sudden strong profit in 2012. Down will go backwards, but the trend is still up. However, in the three years from 2019 to 2021, it has been going backwards for three consecutive years. The just announced 2021 annual results only made 5 billion yuan, which is the lowest level since 2008. The current stock price is more than double that of the year, but the profit is profitable. But back to the previous level, do you think the current valuation is expensive?
Taking a closer look at the performance, the gas revenue in Hong Kong increased slightly by 5% year-on-year, and the mainland was even stronger, with revenue increasing by 35%. However, in terms of EBITDA, the Hong Kong segment increased slightly by 0.4%, and the mainland only increased by 7%, and the stock price fell sharply. The reason was finally found. It turned out that the domestic business grew so much, but the profit could not keep up. In addition, the asset impairment provision for this year was one billion yuan more than last year. The business point solution is so poor, in fact, the comrades in arms openHong Kong China Smart Energy (1083)The stock price chart and performance of the company are clear. The stock price has fallen by 40% this year, and the annual profit has dropped by 13% year-on-year. While the gas holds 66% of the Hong Kong Smart Energy, the mainland business is bad, and it was announced a week earlier. Everyone.
The current price-earnings ratio of Gas is 35 times, and the dividend yield is 3.6%. Whether the valuation is reasonable or not is a matter of opinion, but if you want to find dividend-paying stocks, you can readThe four darings mentioned in this column two weeks agoshould be the better choice.
Hong Kong and China Gas (0003.HK) Stock Price Information
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