0003.HK · Intrinsic value
Is The Hong Kong and China Gas Company Limited (0003.HK) overvalued or undervalued?
The Hong Kong and China Gas Company Limited (0003.HK) trades at the delayed market price of HK$7.22 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is HK$6.35 a share (priced within our range of HK$3.57 – HK$7.87). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is 0003.HK fairly valued?
- Fair value
- HK$6.35
- Market price
- HK$7.22
- Downside to fair value
- 12.0%
- Verdict
- Priced within our range of HK$3.57 – HK$7.87
Reverse DCF: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is 0003.HK's TickerWorth Score?
Scores lower than most companies we compare it with
Compared with Utilities companies in Hong Kong
Its strongest point: strong balance sheet. Its weakest: trades above our estimate of what it's worth.
- Value · 49 of 100
Cheaper than 49% of Utilities companies worldwide
- Price vs worth · 26 of 100
- Quality · 35 of 100
More profitable than 35% of Utilities companies worldwide
- Financial health · 60 of 100
Financially stronger than 60% of Utilities companies worldwide
- Growth · 47 of 100
Growing faster than 47% of Utilities companies worldwide
- Momentum · 58 of 100
Outperformed 58% of Utilities companies worldwide over the past year
Confidence: High confidence · Scored
Get the Undervalued Company of the Week.
0003.HK DCF valuation, input by input
TickerWorth's fair value for The Hong Kong and China Gas Company Limited (0003.HK) is HK$6.35 a share, against the delayed market price of HK$7.22 (priced within our range of HK$3.57 – HK$7.87). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values 0003.HK at about 1.44 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts The Hong Kong and China Gas Company Limited's projected free cash flows at a weighted-average cost of capital (WACC) of 7.1%, with a long-run terminal growth rate of 2.5%. About 81% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — 0003.HK would need sustained revenue growth of more than 25%/yr to justify today's price, against about 5.6% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, 0003.HK's modeled DCF value ranges from about -0.01 to 6.38 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what The Hong Kong and China Gas Company Limited would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of 0003.HK's intrinsic value. Figures update as new filings and prices come in.
Every input behind 0003.HK's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | 56,338,200,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 15.0% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 7% → 6% → 6% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.55 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 18,660M |
| Market priceLive feed — delayed quote · as of 2026-10-19T19:28:14+00:00 | 7.21 |
Change 0003.HK's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does The Hong Kong and China Gas Company Limited do?
What does it do?
The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas, water supply and energy services in Hong Kong and Mainland China. It is involved in the provision of renewable energy solutions, piped city-gas projects, gas supply chain, water supply, and urban waste utilization projects, as well as new energy exploration and utilization ventures. It operates in the Utilities - Regulated Gas industry (Utilities sector), headquartered in Hong Kong. The company employs roughly 54,076 people.
How does it make money?
The business turns $56.3B in annual revenue into profit. Out of every $100 of sales, about $15 is left as operating profit (operating margin of 15.0%), after a 37% gross margin on the products/services it sells. After all costs, taxes and interest, 11.3% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries modest debt (0.9× equity), may struggle to cover its short-term bills (0.7× current ratio), and is currently profitable.
0003.HK insider trading
Insider filings are available for US-listed companies only.
Common questions
What is 0003.HK's intrinsic value?
TickerWorth's blended fair value for The Hong Kong and China Gas Company Limited (0003.HK) is HK$6.35 per share, versus a market price of HK$7.22 (priced within our range of HK$3.57 – HK$7.87).
Is 0003.HK overvalued or undervalued?
Priced within our range of HK$3.57 – HK$7.87 at HK$7.22. We don't call 0003.HK overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for 0003.HK?
A WACC of 7.1% and a terminal growth rate of 2.5%.
Is The Hong Kong and China Gas stock undervalued?
TickerWorth's fair value for The Hong Kong and China Gas Company Limited (0003.HK) is HK$6.35 against a market price of HK$7.22. Our read: Priced within our range of HK$3.57 – HK$7.87. This is a model estimate, not investment advice.
The Hong Kong and China Gas (0003.HK) DCF valuation and fair value
Our fair value for The Hong Kong and China Gas Company Limited (0003.HK) is HK$6.35, built on a 7.1% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into The Hong Kong and China Gas stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of HK$7.22. A model estimate, not investment advice.
The Hong Kong and China Gas (0003.HK) insider trading
We have no recent SEC Form 4 insider filings on file for The Hong Kong and China Gas Company Limited (0003.HK). Form 4 covers US-listed companies only.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.