Henan Lantian Gas Co Ltd
SSE:605368

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Henan Lantian Gas Co Ltd
SSE:605368
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Price: 7.77 CNY -0.26% Market Closed
Market Cap: ¥5.6B

EV/GP

9.2
Current
5%
More Expensive
vs 3-y average of 8.8

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
9.2
=
Enterprise Value
¥7.3B
/
Gross Profit
¥747.6m

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
9.2
=
Enterprise Value
¥7.3B
/
Gross Profit
¥747.6m

Valuation Scenarios

Henan Lantian Gas Co Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (8.8), the stock would be worth ¥7.41 (5% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-15%
Maximum Upside
+48%
Average Upside
19%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 9.2 ¥7.77
0%
3-Year Average 8.8 ¥7.41
-5%
5-Year Average 7.8 ¥6.59
-15%
Industry Average 13.6 ¥11.52
+48%
Country Average 13.6 ¥11.46
+47%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

In line with most companies in China
Percentile
35th
Based on 6 967 companies
35th percentile
9.2
Low
0 — 8
Typical Range
8 — 23.3
High
23.3 —
Distribution Statistics
China
Min 0
30th Percentile 8
Median 13.6
70th Percentile 23.3
Max 17 898 541.1

Henan Lantian Gas Co Ltd
Glance View

Market Cap
5.6B CNY
Industry
Utilities

Henan Lantian Gas Co Ltd stands as a key player in China's rapidly evolving energy sector, navigating a complex industry landscape marked by growing urbanization and industrial demand. Established with a clear focus on the storage and distribution of natural gas, the company operates primarily within Henan Province—an area characterized by its burgeoning infrastructure and industrial growth. Henan Lantian Gas leverages a robust network of pipelines and partnerships with local governments and enterprises to ensure a steady supply of natural gas. The company's business model revolves around the pivotal role of being an intermediary that secures natural gas from upstream suppliers and efficiently distributes it to end-users, including households, businesses, and industries. This integrated distribution network aids in maintaining a competitive edge by ensuring reliability and safety, thus fostering trust and a solid customer base. Financially, Henan Lantian Gas thrives on a steady stream of revenue generated from its comprehensive service offerings. The company's profit engine combines the sales of natural gas together with related services like infrastructure development, connection services, and maintenance. By tapping into the increasing demand for clean energy solutions, the company captures value through competitive pricing and strategic geographic positioning. Moreover, Henan Lantian's ability to adjust tariffs and expand its customer network within the lucrative central Chinese market highlights its agility in navigating regulatory frameworks and market dynamics. Overall, the company’s business strategy is deeply entwined with the global shift toward cleaner energy sources, positioning it well amidst China’s broader energy transformation goals.

Intrinsic Value
9.46 CNY
Undervaluation 18%
Intrinsic Value
Price ¥7.77
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