Henan Lantian Gas Co Ltd
SSE:605368

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

P/FCFE

14.3
Current
8%
Cheaper
vs 3-y average of 15.5

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
14.3
=
Market Cap
¥6B
/
Free Cash Flow to Equity
¥389.6m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
14.3
=
Market Cap
¥6B
/
Free Cash Flow to Equity
¥389.6m

Valuation Scenarios

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

If P/FCFE returns to its 3-Year Average (15.5), the stock would be worth ¥8.43 (8% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+85%
Average Upside
25%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 14.3 ¥7.77
0%
3-Year Average 15.5 ¥8.43
+8%
5-Year Average 14.8 ¥8.04
+3%
Industry Average 14.5 ¥7.9
+2%
Country Average 26.4 ¥14.38
+85%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
CN
Henan Lantian Gas Co Ltd
SSE:605368
5.6B CNY 14.3 15.2
US
Atmos Energy Corp
NYSE:ATO
31.2B USD -56.6 25
ES
Naturgy Energy Group SA
MAD:NTGY
24.8B EUR 20.4 12.3
IT
Snam SpA
MIL:SRG
22.6B EUR 26.9 17.8
HK
Hong Kong and China Gas Co Ltd
HKEX:3
134.9B HKD 28 23.7
JP
Tokyo Gas Co Ltd
TSE:9531
2.5T JPY 32.9 10.8
JP
Osaka Gas Co Ltd
TSE:9532
2.2T JPY 41.4 12
IT
Italgas SpA
MIL:IG
10.5B EUR 7.3 15.6
CA
AltaGas Ltd
TSX:ALA
15.8B CAD -30 21.8
IN
GAIL (India) Ltd
NSE:GAIL
1.1T INR 23.1 12.4
AU
APA Group
ASX:APA
13.8B AUD -71.4 85.2

Market Distribution

In line with most companies in China
Percentile
31st
Based on 5 086 companies
31st percentile
14.3
Low
0.2 — 13.7
Typical Range
13.7 — 52.8
High
52.8 —
Distribution Statistics
China
Min 0.2
30th Percentile 13.7
Median 26.4
70th Percentile 52.8
Max 2 279 450.9

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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