Special Report on the Industrial Gases Industry: Learning from Linde Gas—Broad Growth Potential in the Industrial Gases Sector

Linde Gas and Hangyang Co., Ltd. exhibit strong business comparability, with industrial gas operations accounting for the highest share of revenue for both companies. In 2022, industrial gas revenue accounted for 86% of Linde Gas’s total revenue and 63% for Hangyang. There remains a substantial gap between the two companies’ industrial gas revenues: Linde Gas generated $28.7 billion (approximately RMB 206.1 billion) in industrial gas revenue in 2022—26 times that of Hangyang; its equipment business revenue was $2.8 billion (approximately RMB 19.8 billion), four times Hangyang’s equipment revenue. Industrial gas revenue growth has been the fastest, and Hangyang has recently demonstrated stronger growth momentum than Linde Gas. From 2019 to 2022, the compound annual growth rates (CAGRs) of equipment business revenue were 0% for Linde Gas and 11% for Hangyang; CAGRs of industrial gas revenue were 7% and 20%, respectively. Hangyang’s CAGRs for equipment and industrial gas revenue thus outpaced Linde Gas’s by 11 percentage points (ppts) and 13 ppts, respectively. In 2022, Linde Gas’s gross margin (excluding depreciation and amortization) stood at approximately 29%, slightly higher than Hangyang’s 25%—a difference of 4 ppts. Linde Gas’s net profit margin was 13% in 2022, also slightly above Hangyang’s 10%—a difference of 3 ppts. Revenue breakdown: Price is the primary driver behind gross margin expansion. From 2018 to 2022, volume, price, cost pass-through, exchange rate fluctuations, and M&A contributed, on average per year, +2 ppts, +3 ppts, +2 ppts, −1 ppt, and +22 ppts, respectively, to revenue growth. 2.2 Management Capability and Operational Efficiency Linde Gas’s selling, general, and administrative (SG&A) expense ratio exceeds Hangyang’s. In 2022, Linde Gas’s SG&A expenses accounted for 9% of sales revenue, whereas Hangyang’s combined selling expenses, administrative expenses, and taxes and surcharges amounted to 8% of revenue. Linde Gas’s financial expense ratio is marginally lower than Hangyang’s: 0.2% versus 0.6% in 2022. R&D investment intensity in the industrial gases industry is generally low; Hangyang’s R&D expense ratio far exceeds Linde Gas’s. In 2022, Linde Gas’s R&D expenditure totaled USD 143 million (approx. RMB 1.027 billion), while Hangyang spent RMB 463 million. Linde Gas’s R&D expense ratio was 0.4%, compared to Hangyang’s 3.6%. Linde Gas’s industrial gas revenue share exceeds Hangyang’s, resulting in somewhat differing operational efficiencies between the two firms. • Linde Gas demonstrates superior inventory turnover: 10.5 in 2022 versus Hangyang’s 2.8. • Linde Gas’s accounts receivable turnover lags Hangyang’s: 6.0 versus 8.4 in 2022. • Linde Gas’s fixed asset turnover is lower than Hangyang’s: 1.4 versus 2.2 in 2022.

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China National Chemical Corporation (ChemChina) reported Q3 revenue of RMB 45.255 billion, up 32.8% year-on-year; net profit attributable to shareholders was RMB 1.071 billion, up 10.9%. For the first three quarters, revenue totaled RMB 120.053 billion (+33.4% YoY); net profit attributable to shareholders reached RMB 3.720 billion (+28.4% YoY). Hengyi Petrochemical reported Q3 revenue of RMB 43.512 billion (+20.77% YoY); net profit attributable to shareholders was −RMB 496 million (−159.91% YoY). For the first three quarters, revenue totaled RMB 123.316 billion (+26.93% YoY); net profit attributable to shareholders was RMB 1.317 billion (−56.7% YoY). Wanhua Chemical reported Q3 revenue of RMB 41.302 billion (+4.14% YoY); net profit was RMB 3.225 billion (−46.35% YoY). For the first three quarters, revenue totaled RMB 130.420 billion (+21.53% YoY); net profit was RMB 13.608 billion (−30.36% YoY). Sinochem International reported Q3 revenue of RMB 21.5 billion (+10.56% YoY); net profit was RMB 315 million (+21% YoY). For the first three quarters, revenue totaled RMB 65.939 billion (+12.83% YoY); net profit was RMB 1.29 billion (−46.36% YoY). Yunnan Yuntianhua reported Q3 operating revenue of RMB 19.836 billion (+18.77% YoY); net profit attributable to shareholders was RMB 1.665 billion (+31.24% YoY). For the first three quarters, operating revenue totaled RMB 56.459 billion (+18.53% YoY); net profit attributable to shareholders was RMB 5.130 billion (+80.63% YoY). Jiangsu Dongfang Shenghong reported Q3 revenue of RMB 16.466 billion (+17.14% YoY); net profit attributable to shareholders was −RMB 58.7978 million. For the first three quarters, revenue totaled RMB 46.708 billion (+16.17% YoY); net profit attributable to shareholders was RMB 1.577 billion (−59.99% YoY). Tongkun Group reported Q3 revenue of RMB 17.337 billion (−14.01% YoY); net profit attributable to shareholders was −RMB 366 million. For the first three quarters, revenue totaled RMB 47.189 billion (−6.27% YoY); net profit attributable to shareholders was RMB 1.935 billion (−68.59% YoY). Xinfengming reported Q3 revenue of RMB 14.228 billion (+10.4% YoY); net loss was RMB 110 million. For the first three quarters, revenue totaled approximately RMB 37.943 billion (+3.76% YoY); net profit attributable to shareholders was approximately RMB 284 million (−85.32% YoY). Zhongtai Chemical reported Q3 revenue of RMB 11.784 billion (+2.26% YoY); net profit attributable to shareholders was RMB 9.4278 million (−98.71% YoY). For the first three quarters, operating revenue totaled RMB 41.132 billion (−2.6% YoY); net profit attributable to shareholders was RMB 1.155 billion (−53.1% YoY). LG Chem (South Korea) reported Q3 net profit of KRW 714 billion (+5.0% YoY); operating profit rose 6.4% YoY to KRW 901 billion; sales increased 34.0% YoY to KRW 14.1 trillion (approx. USD 10.3 billion).

TD Waterhouse Canada Inc. Reduces Stake in Linde PLC

Oct 17, 2026

TD Waterhouse Canada Inc. reduced its stake in Linde PLC by 12.1% this quarter, although the company reported strong quarterly earnings exceeding estimates. Analysts maintain a consensus Buy rating as Linde pursues growth in hydrogen infrastructure and carbon capture.

MarketBeat

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