tiprankstipranks
Trending News
More News >
Shandong Molong Petroleum Machinery (HK:0568)
:0568
Advertisement

Shandong Molong Petroleum Machinery (0568) AI Stock Analysis

Compare
1 Followers

Top Page

HK:0568

Shandong Molong Petroleum Machinery

(OTC:0568)

Select Model
Select Model
Select Model
Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
HK$4.00
▼(-2.20% Downside)
The overall stock score is primarily influenced by financial performance and technical analysis. The company's declining revenue, profitability issues, and high leverage are significant concerns. Technical indicators suggest bearish momentum, while valuation metrics indicate potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

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 Company Limited engages in the design, research and development, production, and sale of products for the energy equipment industry in the People's Republic of China. The company operates through Pipe Products, Three Kinds of Pumping Units, Petroleum Machinery Parts, Tube Blank, High-End Castings and Forgings, and Others segments. The company's products include API and non API casing products, line pipe products, precision steel pipes, hydraulic prop tubes, fluid pipes, cylinder tubes, and boiler tubes; sucker rods; and valve body, cylinder liners, gate valves, and billet products. Its products are used in petroleum, natural gas, coalbed methane, shale gas, machinery processing, urban pipe network, etc., as well as used in equipment for oil and gas drilling, and wind turbine castings. In addition, the company engages in the research of new materials for energy equipment; production and sale of metal casting and forging; sea water desalination activities; waste heat and gas power generation activities; and manufacture and sale of special equipment. It also exports its energy equipment. Shandong Molong Petroleum Machinery Company Limited was founded in 2001 and is based in Shouguang City, China.
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 shows a decline in revenue and profitability over recent years, with high leverage posing financial risks. While cash flow remains positive, the company's financial trajectory is concerning, with operational inefficiencies and high debt levels impacting overall financial health.
Income Statement
45
Neutral
The company's revenue has been on a downward trend, decreasing from 2019 to 2024. The gross profit margin for 2024 is approximately 2.44%, reflecting a decline in profitability. The net profit margin is negative due to a net loss, indicating profitability issues. Revenue growth is negative, and the EBIT margin is also negative, suggesting operational challenges. These factors contribute to a moderate income statement score.
Balance Sheet
50
Neutral
The company has a high debt-to-equity ratio of approximately 2.96 in 2024, indicating a high level of leverage which could pose financial risk. The equity ratio is around 20.34%, showing a moderate reliance on equity financing. Return on equity is negative due to the net loss, which impacts the score. The balance sheet displays stability concerns with high debt levels.
Cash Flow
60
Neutral
Operating cash flow has decreased from 2019 levels but remains positive. Free cash flow is positive, though growth is limited compared to previous years. The operating cash flow to net income ratio cannot be calculated due to a negative net income, while the free cash flow to net income ratio is irrelevant in this context. Overall, cash flow management appears stable but faces growth challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.45B1.36B1.32B2.77B3.73B3.01B
Gross Profit54.63M33.11M101.78M90.43M219.98M107.28M
EBITDA80.34M13.37M2.15M-108.68M1.63M101.07M
Net Income-255.19M-43.70M-566.86M-424.97M-368.42M32.18M
Balance Sheet
Total Assets2.44B2.42B2.89B4.04B4.46B5.18B
Cash, Cash Equivalents and Short-Term Investments431.22M89.14M102.37M462.69M475.19M759.98M
Total Debt1.45B1.46B1.65B2.12B2.06B2.31B
Total Liabilities1.94B1.93B2.55B3.13B3.10B3.37B
Stockholders Equity497.72M492.27M424.01M987.96M1.41B1.78B
Cash Flow
Free Cash Flow427.23M43.58M129.31M-19.98M-16.18M161.49M
Operating Cash Flow427.54M43.87M134.99M-11.51M35.79M206.90M
Investing Cash Flow109.37M243.90M-2.78M-8.47M89.53M314.28M
Financing Cash Flow-295.42M-296.96M-405.11M-409.49M-306.14M

Shandong Molong Petroleum Machinery Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.09
Price Trends
50DMA
4.26
Negative
100DMA
3.80
Positive
200DMA
2.52
Positive
Market Momentum
MACD
-0.03
Negative
RSI
46.56
Neutral
STOCH
25.15
Neutral
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 4.09 is below the 20-day moving average (MA) of 4.15, below the 50-day MA of 4.26, and above the 200-day MA of 2.52, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 25.15 is Neutral, 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
74
Outperform
4.08B12.026.94%1.96%10.16%49.48%
60
Neutral
1.15B17.398.51%5.36%-59.96%-83.53%
50
Neutral
8.99B-366.26-5.86%0.66%4.15%-432.65%
49
Neutral
340.94M-7.33-10.18%0.97%33.70%
48
Neutral
$4.75B-36.92%38.46%14.55%
48
Neutral
117.41M-4.02-10.29%-36.59%48.63%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0568
Shandong Molong Petroleum Machinery
4.10
3.30
412.50%
ATONF
Anton Oilfield Services Group
0.17
0.10
142.86%
JUTOF
Jutal Offshore Oil Services
0.07
0.01
16.67%
DE:GSG
Shengli Oil & Gas Pipe Holdings Ltd.
0.01
0.00
0.00%
HK:1921
Dalipal Holdings Limited
5.97
2.28
61.79%
HK:2178
Petro-king Oilfield Services Ltd.
0.07
0.01
16.67%

Shandong Molong Petroleum Machinery Corporate Events

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.

Shandong Molong Reports Significant Profit Decline Amid Operational Turnaround
Jul 7, 2025

Shandong Molong Petroleum Machinery Company Limited announced a significant decline in net profit for the first half of 2025, with an estimated profit of 10 to 13 million RMB, marking a 92.36% to 94.12% decrease compared to the previous year. Despite the decline, the company reported a turnaround from loss to profit in operating results after extraordinary gains or losses, attributed to increased production and sales, improved capacity utilization, and strengthened cost control measures.

Shandong Molong Petroleum Machinery Reports Successful AGM Outcomes
Jun 27, 2025

Shandong Molong Petroleum Machinery Company Limited announced that all resolutions proposed at its Annual General Meeting (AGM) on June 27, 2025, were successfully passed. The resolutions included the approval of the board’s work report, the supervisory committee’s work report, the annual report, the profit distribution plan, and a resolution concerning uncovered losses. This successful AGM outcome reflects strong shareholder support and may positively influence the company’s strategic direction and financial stability.

Shandong Molong Petroleum Machinery Announces Board Composition and Committee Roles
Jun 27, 2025

Shandong Molong Petroleum Machinery Company Limited has announced the composition of its board of directors and the roles within its four board committees. The board comprises executive, non-executive, and independent non-executive directors, with specific members assigned to the Audit, Nomination, Remuneration, and Strategy Committees. This announcement reflects the company’s commitment to structured governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

Shandong Molong Reports Unusual A Share Price Movement
Jun 25, 2025

Shandong Molong Petroleum Machinery Company Limited has experienced an unusual decrease in the closing prices of its A shares, with a deviation of more than 20% over two consecutive trading days. The company’s board of directors has verified that there are no undisclosed material events or changes in the company’s operations that could have influenced this price movement. They also confirmed that the controlling shareholders have not engaged in trading during this period. The company advises investors to exercise caution and remain informed through designated information disclosure platforms.

Shandong Molong Petroleum Machinery Sees Unusual Stock Price Surge
Jun 20, 2025

Shandong Molong Petroleum Machinery Company Limited experienced an unusual increase in its A shares’ closing prices, deviating by more than 20% over two consecutive trading days. The company’s board has verified that there are no undisclosed material events affecting the stock’s trading prices, and no recent changes in production or operations. The company advises investors to exercise caution due to the high trading risk associated with the recent significant rise in stock prices.

Shandong Molong Reports Unusual A Share Price Movement
Jun 18, 2025

Shandong Molong Petroleum Machinery Company Limited announced an unusual price movement in its A shares, with a deviation of more than 20% over two consecutive trading days. The company conducted a thorough verification and confirmed that there are no undisclosed material events or changes in its operations that could have influenced this price movement. The board of directors emphasized that there is no need for corrections to previously disclosed information, and investors are advised to exercise caution due to potential investment risks.

Shandong Molong Reports Unusual Share Price Movement
Jun 16, 2025

Shandong Molong Petroleum Machinery Company Limited has reported an unusual price movement in its A shares, which increased by more than 20% over two consecutive trading days. The company’s board has verified that there is no undisclosed material information or changes in its operations that could explain the price movement. The company assures stakeholders that it will continue to fulfill its information disclosure obligations and advises investors to exercise caution.

Shandong Molong Announces Supplemental AGM Notice and Director Elections
Jun 13, 2025

Shandong Molong Petroleum Machinery Company Limited has announced a supplemental notice for its upcoming Annual General Meeting (AGM) scheduled for June 27, 2025. The meeting will address additional resolutions, including the election of Mr. Song Guang Jie as an executive director and Mr. Huang Bing De as a non-executive director for the company’s board. This announcement is part of the company’s governance activities and may impact its strategic direction and leadership structure.

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: Sep 19, 2025