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Shandong Molong Petroleum Machinery Co., Ltd. Class H (HK:0568)
:0568
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Shandong Molong Petroleum Machinery (0568) AI Stock Analysis

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HK:0568

Shandong Molong Petroleum Machinery

(OTC:0568)

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Neutral 40 (OpenAI - 4o)
Rating:40Neutral
Price Target:
HK$4.00
▼(-4.08% Downside)
The overall stock score of 40.25 reflects significant financial challenges and valuation concerns. The company's financial performance is the most critical factor, with ongoing losses and high leverage posing substantial risks. Technical analysis provides some neutral signals, but the valuation remains unattractive due to negative profitability metrics. Urgent improvements in financial health are necessary to enhance the stock's outlook.

Shandong Molong Petroleum Machinery (0568) vs. iShares MSCI Hong Kong ETF (EWH)

Shandong Molong Petroleum Machinery Business Overview & Revenue Model

Company DescriptionShandong Molong Petroleum Machinery Co., Ltd. (stock code: 0568) is a leading Chinese manufacturer specializing in petroleum machinery and equipment. The company primarily operates in the oil and gas sector, offering a wide range of products including drilling rigs, wellhead equipment, and downhole tools. With a strong emphasis on technology and innovation, Shandong Molong serves both domestic and international markets, catering to the needs of oilfields and energy companies worldwide.
How the Company Makes MoneyShandong Molong generates revenue primarily through the sale of its petroleum machinery and equipment to oil and gas operators. Key revenue streams include the manufacture and distribution of drilling rigs, wellhead assemblies, and various downhole tools, which are critical for oil extraction and production processes. The company also earns income from providing maintenance services and spare parts for its equipment. Significant partnerships with major oilfield operators and collaborations with international energy firms enhance its market presence and contribute to steady revenue growth. Additionally, the company's focus on research and development allows it to introduce innovative products that meet evolving industry standards, further driving sales and profitability.

Shandong Molong Petroleum Machinery Financial Statement Overview

Summary
Shandong Molong Petroleum Machinery is facing significant financial challenges. The income statement reveals ongoing losses with a deeply negative net profit margin of -13.07%. The balance sheet shows high leverage with a debt-to-equity ratio of 2.71, indicating financial vulnerability. Cash flow analysis highlights a concerning decline in free cash flow growth at -78.65% TTM, despite some ability to generate cash from operations. Overall, the company's financial health is weak, requiring urgent improvements.
Income Statement
35
Negative
The company shows a slight improvement in revenue growth with a 6.54% increase in TTM, but profitability remains a significant concern. The net profit margin is deeply negative at -13.07%, indicating ongoing losses. Gross profit margin is low at 2.86%, and EBIT margin is negative, reflecting operational inefficiencies. Despite a positive EBITDA margin, the overall income statement suggests financial instability.
Balance Sheet
40
Negative
The balance sheet reflects high leverage with a debt-to-equity ratio of 2.71, which poses a risk in terms of financial stability. The return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is not explicitly calculated, but the high debt levels suggest a low equity buffer. Overall, the balance sheet indicates financial vulnerability.
Cash Flow
45
Neutral
Cash flow analysis reveals a significant decline in free cash flow growth at -78.65% TTM, which is concerning. However, the operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations. The free cash flow to net income ratio is above 0.5, indicating some cash generation relative to net losses. Despite these positives, the overall cash flow position remains weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.55B1.36B1.32B2.77B3.73B3.01B
Gross Profit102.98M33.11M101.78M52.94M172.34M107.28M
EBITDA128.28M13.37M2.15M-108.68M1.63M101.07M
Net Income-201.67M-43.70M-566.86M-424.97M-368.42M32.18M
Balance Sheet
Total Assets2.33B2.42B2.89B4.04B4.46B5.18B
Cash, Cash Equivalents and Short-Term Investments153.16M89.14M102.37M462.69M475.19M759.98M
Total Debt1.37B1.46B1.65B2.12B2.10B2.31B
Total Liabilities1.82B1.93B2.55B3.13B3.10B3.37B
Stockholders Equity504.50M492.27M424.01M987.96M1.41B1.78B
Cash Flow
Free Cash Flow91.22M43.58M129.31M-19.98M-16.18M161.49M
Operating Cash Flow177.65M43.87M134.99M-11.51M35.79M206.90M
Investing Cash Flow72.88M243.90M-2.78M-8.47M89.53M314.28M
Financing Cash Flow-191.25M-296.96M-405.11M-409.49M-306.14M

Shandong Molong Petroleum Machinery Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.17
Price Trends
50DMA
4.19
Negative
100DMA
4.26
Negative
200DMA
2.93
Positive
Market Momentum
MACD
0.02
Positive
RSI
45.72
Neutral
STOCH
7.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0568, the sentiment is Negative. The current price of 4.17 is below the 20-day moving average (MA) of 4.23, below the 50-day MA of 4.19, and above the 200-day MA of 2.93, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 7.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0568.

Shandong Molong Petroleum Machinery Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$15.17B7.614.09%5.20%3.87%-62.32%
$3.26B9.498.78%2.60%10.16%49.48%
$1.22B17.702.87%2.68%-59.96%-83.53%
€344.82M-10.68%0.97%33.70%
HK$9.76B-1.68%0.61%4.66%-432.65%
HK$113.96M-3.91-16.54%-36.59%48.63%
HK$5.27B-20.65%17.21%59.09%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0568
Shandong Molong Petroleum Machinery
4.10
2.95
256.52%
HK:3337
Anton Oilfield Services Group
1.05
0.47
79.79%
HK:3303
Jutal Offshore Oil Services
0.57
-0.19
-24.80%
HK:1080
Shengli Oil & Gas Pipe Holdings Ltd.
0.09
0.05
168.75%
HK:1921
Dalipal Holdings Limited
6.48
2.19
51.05%
HK:2178
Petro-king Oilfield Services Ltd.
0.06
-0.01
-14.29%

Shandong Molong Petroleum Machinery Corporate Events

Shandong Molong Reverses Asset Impairment Provisions for Q1-Q3 2025
Oct 28, 2025

Shandong Molong Petroleum Machinery Co., Ltd. has conducted a comprehensive assessment of its assets as of September 30, 2025, to accurately reflect its financial condition and asset value. The company reversed asset impairment provisions amounting to RMB 4,723,528.42 after impairment testing, primarily due to the recovery of outstanding accounts receivable from customers aged over five years. This adjustment is expected to positively impact the company’s financial statements for the first three quarters of 2025, showcasing improved asset management and financial health.

The most recent analyst rating on (HK:0568) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Shandong Molong Petroleum Machinery stock, see the HK:0568 Stock Forecast page.

Shandong Molong Reports Improved Cash Flow Despite Profit Decline in Q3 2025
Oct 28, 2025

Shandong Molong Petroleum Machinery Company Limited has released its unaudited third quarterly report for 2025, highlighting a slight decrease in operating income by 0.81% compared to the same period last year, totaling RMB 397,246,057.55. Despite this, the company saw a significant improvement in net profits attributable to shareholders, with a 93.57% increase, though the net profits after deducting non-recurring items showed a substantial decline of 96.79%. The company also reported a notable increase in net cash flow from operating activities by 328.79%, indicating improved operational efficiency. Total assets grew by 4.36%, and shareholders’ equity rose by 1.14%, reflecting a stable financial position.

The most recent analyst rating on (HK:0568) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Shandong Molong Petroleum Machinery stock, see the HK:0568 Stock Forecast page.

Unusual Price Movement in Shandong Molong Petroleum Machinery’s A Shares
Oct 23, 2025

Shandong Molong Petroleum Machinery Company Limited has observed an unusual increase in the closing prices of its A shares, deviating by more than 20% over two consecutive trading days. The company has confirmed that there are no undisclosed material events or changes in its operations that could explain this price movement. The board of directors assures that all relevant information has been disclosed and advises investors to exercise caution due to potential investment risks.

The most recent analyst rating on (HK:0568) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Shandong Molong Petroleum Machinery stock, see the HK:0568 Stock Forecast page.

Shandong Molong Reports Unusual Share Price Movement
Oct 21, 2025

Shandong Molong Petroleum Machinery Company Limited has reported an unusual movement in its A shares, with a decrease of over 20% in closing prices over three consecutive trading days. The company has conducted a thorough investigation and found no undisclosed material information or changes in its operations that would affect stock prices. The board confirms there are no undisclosed events that need to be reported, and advises investors to exercise caution due to potential investment risks.

The most recent analyst rating on (HK:0568) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Shandong Molong Petroleum Machinery stock, see the HK:0568 Stock Forecast page.

Shandong Molong Announces EGM to Discuss Governance Changes
Oct 16, 2025

Shandong Molong Petroleum Machinery Company Limited has announced an extraordinary general meeting (EGM) scheduled for November 3, 2025, to discuss and potentially approve adjustments to its corporate governance structure and amendments to its articles of association. This meeting signifies a strategic move to enhance corporate governance, which could impact the company’s operational efficiency and stakeholder relations.

The most recent analyst rating on (HK:0568) stock is a Sell with a HK$4.00 price target. To see the full list of analyst forecasts on Shandong Molong Petroleum Machinery stock, see the HK:0568 Stock Forecast page.

Shandong Molong Proposes Governance Restructuring
Oct 16, 2025

Shandong Molong Petroleum Machinery Company Limited has announced proposed amendments to its Articles of Association and the abolition of its Supervisory Committee. These changes aim to optimize the company’s governance structure in compliance with relevant laws and regulations, including the revised Company Law of the People’s Republic of China. The duties of the Supervisory Committee will be transferred to the audit committee of the board of directors, subject to shareholder approval at an extraordinary general meeting. This restructuring is expected to streamline operations and enhance the company’s governance framework.

The most recent analyst rating on (HK:0568) stock is a Sell with a HK$4.00 price target. To see the full list of analyst forecasts on Shandong Molong Petroleum Machinery stock, see the HK:0568 Stock Forecast page.

Shandong Molong to Review Q3 Financial Results
Oct 15, 2025

Shandong Molong Petroleum Machinery Company Limited has announced that its board of directors will meet on October 28, 2025, to review and approve the unaudited third-quarter results for the nine months ending September 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (HK:0568) stock is a Sell with a HK$4.00 price target. To see the full list of analyst forecasts on Shandong Molong Petroleum Machinery stock, see the HK:0568 Stock Forecast page.

Shandong Molong Reports Revenue Growth Amidst Profit Decline
Aug 22, 2025

Shandong Molong Petroleum Machinery Company Limited reported its interim results for the six months ended June 30, 2025, showing a significant increase in revenue by approximately 31.90% compared to the previous year, reaching RMB797.5203 million. However, the net profit attributable to equity owners dropped significantly to RMB12.1637 million from RMB170.1349 million in the same period last year. The company decided not to pay an interim dividend, reflecting the impact on its profitability despite the revenue growth.

Shandong Molong Schedules Board Meeting to Review Interim Results
Aug 12, 2025

Shandong Molong Petroleum Machinery Company Limited has announced a board meeting scheduled for August 22, 2025, to consider and approve the unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also address the potential payment of a dividend and other relevant matters, which could impact the company’s financial strategy and shareholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 31, 2025