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Towngas Smart Energy Company (1083) Fair Value & Analysis

Utilities · HK · Market cap HK$11.1B

TS Towngas Smart Energy Company 1083 · HK
PriceHK$3.14
Fair ValueHK$5.16
Upside+64.2%
Quality36/100
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Expensive Growth
Thin margins · 7.6% net margin
Low debt · negative free cash flow
6.44% dividend yield
Ranks above peers (8/13)
Narrow moat 38/100
Evidence: Medium Range HK$3.86 – HK$6.44 Share as image

Fair value as of: Aug 13, 2026

From 15 valuation models · updated 2 days ago

Fair value updated Aug 13, 2026, revised from HK$7.34 to HK$5.16 (−29.8%) since Aug 5, 2026. Share price −2.8% over the past month.

Below-average quality, screening 64% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (36/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$3.86). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

HK$5.56 HK$2.26 Fair Value HK$5.16 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$2.26 – HK$5.56 · fair‑value band HK$3.86 – HK$6.44 · the HK$3.14 price screens below the HK$5.16 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Towngas Smart Energy Company (1083) currently trades at HK$3.14, while our model-based Fair Value estimate is HK$5.16, implying the stock looks roughly 64.2% undervalued today. The Quality Score stands at 36/100 (below-average quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Towngas Smart Energy Company generated revenue of HK$20.9B at a net margin of 7.6%. Revenue declined 3.1% year over year. It earns a return on equity of 6.5%. Net debt stands at HK$14.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$3.86 (bear case) to HK$6.44 (bull case); at HK$3.14, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 24% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at 2% fair-value upside, at 64%, 1083 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$5.55 HK$5.74 HK$5.88 76
ROIC Compounder HK$0.2500 HK$0.6700 HK$1.03 72
Growth-Adj P/E HK$5.88 HK$8.40 HK$10.91 68
All 15 models by family
DCF Models
Owner Earnings HK$1.59 HK$5.00 31
Earnings-Based
Graham-Dodd HK$2.94 HK$15.55 HK$21.54 54
Lynch FV HK$4.28 HK$6.12 HK$7.95 50
PEG = 1.0 HK$4.28 HK$6.12 HK$7.95 46
EPV HK$0.2500 HK$0.6700 HK$1.03 59
Multiples
P/E Multiple HK$5.83 HK$7.77 HK$9.72 63
P/S Multiple HK$5.51 HK$7.34 HK$9.18 58
P/B Multiple HK$5.51 HK$7.34 HK$9.18 55
EV/EBIT HK$1.99 HK$3.40 HK$4.82 53
EV/EBITDA HK$3.27 HK$5.12 HK$6.96 54
EV/Revenue HK$1.18 HK$2.65 HK$4.12 43
Asset-Based
NCAV (Graham) HK$3.50 HK$4.69 HK$7.01 50
Economic Profit
Residual Income HK$5.55 HK$5.74 HK$5.88 76
ROIC Compounder HK$0.2500 HK$0.6700 HK$1.03 72
Growth Earnings
Growth-Adj P/E HK$5.88 HK$8.40 HK$10.91 68

Widest divergence: Growth Earnings (HK$8.40) versus Economic Profit (HK$0.6700). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$20.9B
Revenue growth (YoY) -3.1%
Net margin 7.6%
Return on equity 6.5%
Free cash flow −HK$575M FY2025
P/E ratio 7.2 as of Jul 2, 2026
More key figures
Operating margin 5.5%
EPS (TTM) HK$0.2100
Dividend yield 6.4%
EPS growth (YoY) -8.5%
Net debt HK$14.9B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 36/100

Of which business quality 34 · Market factors (momentum, volatility) 40

Profitability 26
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 22
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 44
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Towngas Smart Energy Company Limited, an investment holding company, sells piped gas, renewable energy, and other types of energy in the People's Republic of China. The company operates through four segments: Sales of Piped Gas Business; Gas Connection; Renewable Energy Business; and Extended Business.

Full company description

Towngas Smart Energy Company Limited, an investment holding company, sells piped gas, renewable energy, and other types of energy in the People's Republic of China. The company operates through four segments: Sales of Piped Gas Business; Gas Connection; Renewable Energy Business; and Extended Business. It engages in the construction of gas pipelines; provision of photovoltaic power, and other related energy and services; sale of gas related household appliances; and other value-added services. The company also offers smart energy solutions, financing, and engineering works services, and upstream and midstream project services; provides natural gas distributed energy; engages in the procurement of natural gas sources; and operates vehicle gas refilling stations. The company was formerly known as Towngas China Company Limited and changed its name to Towngas Smart Energy Company Limited in December 2021. The company was founded in 1998 and is headquartered in North Point, Hong Kong. Towngas Smart Energy Company Limited operates as a subsidiary of Hong Kong & China Gas (China) Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Towngas Smart Energy Company reported revenue of HK$20.9B in FY2025 versus HK$17.1B in FY2021, a compound +5.1%/yr. Reported net income was HK$1.6B in FY2025, compounding +6.1%/yr from FY2021.

Growth Quality 44/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$20.9B
Latest YoY
−1.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.3%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.7%
Revenue +5.1%/yr
FY21 HK$17.1B
FY22 HK$20.1B
FY23 HK$19.8B
FY24 HK$21.3B
FY25 HK$20.9B
Net income +6.1%/yr
FY21 HK$1.3B
FY22 HK$965M
FY23 HK$1.6B
FY24 HK$1.6B
FY25 HK$1.6B
Character of growth · EPS growth decomposed (2014-2025) +1.8 % p.a.
Revenue per share +7.5 pp

of which total revenue +11.8 pp · buybacks/dilution −4.3 pp

EBIT margin +0.5 pp
Tax rate +1.0 pp
Residual (interest, one-offs) −7.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Towngas Smart Energy Company Fair Value". https://www.fairvalue-calculator.com/stock/1083

Peer Group

Utilities - Regulated Gas · 104 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 36 · Bottom 25%
Fair Value upside +64% · Top 25%
Return on equity (TTM) 7% · Below median
Return on assets 2% · Bottom 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 5% · Below median
Revenue growth -3% · Above median
Dividend yield (TTM) 6.4% · Top 25%
Debt / equity 0.42× · Higher than median

Valuation Multiples vs Utilities - Regulated Gas median · lower = cheaper

P/E (TTM) 7.2× · Cheaper than 75% of peers
P/B 0.43× · Cheaper than 75% of peers
P/S (TTM) 0.53× · Cheaper than 75% of peers
EV/EBITDA 7.3× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 27
FUTURE 0 · sector 0
PAST 26 · sector 34
HEALTH 79 · sector 87
DIVIDEND 100 · sector 74

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Regulated Gas stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Naturgy Energy Group NTGY €28.94 €31.58 +9%
Atmos Energy Corporation ATO $169.59 $85.67 -49%
NiSource Inc NI $42.01 $28.59 -32%
Uniper SE UN0 €47.45 €48.32 +2%
The Hong Kong and China Gas Company 0003 HK$6.76 HK$4.79 -29%
GAIL (India) Limited GAIL ₹177.95 ₹130.21 -27%
Adani Total Gas Limited ATGL ₹660.35 ₹101.36 -85%
ENN Natural Gas Co 600803 ¥17.32 ¥25.71 +48%
ENN Energy Holdings 2688 HK$47.16 HK$107.98 +129%
China Suntien Green Energy Corporation 600956 ¥7.26 ¥7.37 +2%

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Frequently asked questions

Is Towngas Smart Energy Company (1083) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$5.16 versus a price of HK$3.14, about +64% (undervalued).
What is the fair value of 1083?
Our model-based fair value for Towngas Smart Energy Company is HK$5.16 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$3.14.
What is the quality score of 1083?
Towngas Smart Energy Company has a Quality Score of 36/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Towngas Smart Energy Company (1083)?
Towngas Smart Energy Company reported trailing-twelve-month revenue of about HK$20.9B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1083?
The net profit margin of Towngas Smart Energy Company is about 7.6%, meaning it keeps roughly 7.6% of revenue as net income. Based on the latest reported figures.
Does Towngas Smart Energy Company pay a dividend?
Towngas Smart Energy Company currently shows a dividend yield of about 6.44% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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