Energy sector: 60%
Real estate sector: 25%
Water treatment: 15%

TOP 3 markets:
Hong Kong: 50%
Mainland China: 35%
Southeast Asia: 15%

The Hong Kong and China Gas Company Limited generates the majority of its revenue from the energy sector, particularly through gas distribution. Another significant portion comes from the real estate sector, where the company is invested in construction projects and real estate development. Water treatment is a growing area that also contributes to the revenue structure.

Geographically, Hong Kong is the most important market for the company, followed by mainland China, where it has expanded its presence in recent years. Southeast Asia represents the third largest market, with growing potential due to infrastructure projects and energy demand in the region.

Production Sites: Hong Kong, China

The Hong Kong and China Gas Company Limited, also known as Towngas, mainly produces its products in Hong Kong and China. In Hong Kong, the company operates several gas production plants that supply the city with town gas. Additionally, in recent years, Towngas has expanded its activities to the Chinese mainland, where it operates production facilities and joint ventures in various provinces.

This expansion into China enables the company to benefit from the growing demand for energy in the region and strengthen its market presence.

Growth Strategy:

1. Diversification into renewable energies
2. Expansion into the Southeast Asian market
3. Digitalization and technological innovation

The Hong Kong and China Gas Company Limited is pursuing a strategy of diversification and expansion to secure future growth. The company is increasing its investments in renewable energies to reduce its dependence on traditional gas sources and respond to the growing demand for more environmentally friendly solutions.

Additionally, the company plans to expand into the Southeast Asian market to benefit from the growing energy infrastructure and economic developments in this region.

Another focus is on digitalization and technological innovation to increase efficiency and improve customer service. This includes investments in smart meter technologies and digital platforms to optimize the customer experience and modernize operational processes.

Main raw materials: Natural gas, liquefied petroleum gas (LPG)

Countries of origin: Australia, Qatar, Malaysia, Indonesia

The Hong Kong and China Gas Company Limited mainly imports natural gas and liquefied petroleum gas (LPG) to supply their gas networks and meet the demand in Hong Kong and China. Australia and Qatar are significant suppliers of natural gas, while Malaysia and Indonesia are also important sources of liquefied petroleum gas.

These imports are crucial for the energy supply and maintenance of the gas infrastructure in the region. The focus on diversified procurement from different countries helps the company ensure supply security and minimize price volatility.

Market Share in Hong Kong: Over 80% (estimated 2025)
Diversification in China: Over 250 projects in more than 20 provinces (2025)
Financial Stability: Solid balance sheet with stable cash flows (2025)

The Hong Kong and China Gas Company Limited, also known as Towngas, has a significant competitive advantage, especially in its home market of Hong Kong, where it holds a dominant market share of over 80%. This secures the company a stable source of income and a strong market position.

In China, Towngas has expanded its presence through over 250 projects in more than 20 provinces. This diversification allows the company to benefit from urbanization and the increasing energy demand in China. The strategic expansion into the Chinese market provides potential for further growth and strengthens the competitive advantage.

Financially, Towngas is well positioned, with a solid balance sheet and stable cash flows that enable the company to invest in new projects and further solidify its market position. This financial stability also contributes to its competitive advantage.

Institutional Investor Share: 45% (estimated for 2025)
Insider Buys/Sells: No significant insider transactions in the last year (2024)

The institutional investor share in The Hong Kong and China Gas Company Limited is estimated to be around 45%. This demonstrates the confidence of institutional investors in the company and its long-term stability.

In 2024, there were no significant insider buys or sells, indicating that the management and insiders do not currently anticipate major changes in the company's valuation. Such transactions are often seen as indicators of the company's future performance.

Market share of The Hong Kong and China Gas Company Limited (Towngas): Estimated 20% (2025)

Main competitors and their market shares:

1. China National Petroleum Corporation (CNPC): 25%
2. China Petroleum & Chemical Corporation (Sinopec): 22%
3. PetroChina Company Limited: 18%
4. CNOOC Limited: 15%
5. ENN Energy Holdings Limited: 10%
6. Towngas (The Hong Kong and China Gas Company Limited): 20%

Moat of Towngas:

Towngas has a significant moat, especially due to its strong market presence in Hong Kong and its long-standing experience in gas supply. The well-developed infrastructure and high customer satisfaction also contribute to this competitive advantage.

Compared to its competitors, Towngas has the advantage of a stable and loyal customer base in a geographically limited but lucrative market. However, competitors like CNPC and Sinopec have larger financial resources and broader geographic coverage, giving them advantages in terms of economies of scale and diversification.

Overall, Towngas has a solid moat in its core market, while the larger competitors also possess strong competitive advantages through their size and diversification.

Revenue Growth: 3.5% (2024) Profit Growth: 2.1% (2024) Dividend Yield: 4.2% (2024)

The Hong Kong and China Gas Company Limited recorded a moderate revenue growth of 3.5% in 2024. Profit growth was at 2.1%, indicating stable but not overly dynamic business developments. The dividend yield of 4.2% is attractive and suggests a solid payout policy that may be of interest to income-oriented investors.

The company benefits from its strong market position in Hong Kong and China, especially in the gas supply sector. Long-term contracts and stable energy demand provide a certain level of security. However, regulatory changes and economic fluctuations in the region could pose potential risks.

Overall, the stock could be a good investment for investors who value stable dividends and a conservative growth strategy. However, investors seeking more dynamic growth opportunities may look to other sectors.

Dividend Yield: 3.8% (2025, estimated)
Dividend History: Continuous payout for over 10 years

The Hong Kong and China Gas Company Limited has a long tradition of dividend payment and is considered a reliable dividend payer. The company has been consistently distributing dividends in recent years, indicating a stable financial foundation and a sustainable business model.

The estimated dividend yield of 3.8% in 2025 shows that the company offers its shareholders an attractive return. This reliability in payout is a positive signal for investors who rely on regular income from their investments.