Should You Be Holding China Resources Gas Group Limited (HKG:1193)?
China Resources Gas Group Limited (HKG:1193) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 1193, it is a company with great financial health as well as a a strong track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on China Resources Gas Group here.
Solid track record with adequate balance sheet
1193 delivered a bottom-line expansion of 21.5% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 1193 outperformed its past performance, its growth also exceeded the Gas Utilities industry expansion, which generated a 14.2% earnings growth. This is an notable feat for the company. 1193’s has produced operating cash levels of 0.68x total debt over the past year, which implies that 1193’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. Debt funding requires timely payments on interest to lenders. 1193’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.
Next Steps:
For China Resources Gas Group, I’ve put together three key aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for 1193’s future growth? Take a look at our free research report of analyst consensus for 1193’s outlook.
Valuation: What is 1193 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 1193 is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1193? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
