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SGAS Sino Gas International Holdings, Inc. Company Profile out. To access the Free Company Profile click here.

The Company, through its indirectly wholly-owned subsidiary, Beijing Zhong Ran Wei Ye Gas Co., Ltd. ("Beijing Gas"), and the subsidiaries of Beijing Gas, is a leading developer of natural gas distribution systems in small and medium size cities in China, as well as a distributor of natural gas to residential, commercial and industrial customers in China. The Company owns and operates natural gas distribution systems in 35 small and medium-sized cities serving approximately 152,000 residential and seven industrial customers. Facilities include approximately 1,040 kilometers of pipeline and delivery networks with a current daily capacity of approximately 110,000 cubic meters of natural gas. The Company owns and operates natural gas distribution systems in Hebei, Jilin, Jiangsu, Anhui and Yunnan Provinces and Beijing.

SGAS has exclusive concession right agreements with local governments for up to 30 years in the provinces where it operates. Chinese demand for natural gas is expected to triple by 2020, and the Company’s 10% residential penetration rate in its market in implies strong growth for years to come. Sales are up 48% (ttm) and EPS more than 150% (ttm) in the past year. SGAS’ peers trade at a P/E of 14x, while it trades at 5.5x. If the stock were valued at the industry P/E, it would trade at $1.68, a return of more than 180% from the current price level.