Shandong Molong Petroleum Machinery (HK:0568)
:0568
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Shandong Molong Petroleum Machinery
(0568)
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Rating:41Neutral
Price Target:
HK$4.00
▲(26.98% Upside)
Action:Reiterated
Date:06/09/26
The score is primarily held back by weak financial quality (high leverage, ultra-thin margins, and negative free cash flow in 2026 TTM). Technicals are also soft with bearish momentum signals, while valuation is a major headwind due to an extremely high P/E and no dividend data to support the investment case.
Positive Factors
Return to profitability & revenue acceleration
The company returned to profitability in 2025 and reported faster revenue growth in 2026 TTM, signaling demand recovery and operational leverage. Sustained top-line momentum over several quarters supports capacity utilization and underwriting of incremental fixed costs, improving durable earnings prospects.
Negative Factors
High leverage
Debt-to-equity near 3.1 materially raises financial risk in a cyclical equipment business. High leverage limits strategic flexibility, increases refinancing and interest-rate vulnerability, and can force defensive actions in downturns, reducing the firm's ability to invest for durable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Return to profitability & revenue acceleration
The company returned to profitability in 2025 and reported faster revenue growth in 2026 TTM, signaling demand recovery and operational leverage. Sustained top-line momentum over several quarters supports capacity utilization and underwriting of incremental fixed costs, improving durable earnings prospects.
Read all positive factors
Shandong Molong Petroleum Machinery (0568) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$4.98B
Dividend YieldN/A
Average Volume (3M)69.03M
Price to Earnings (P/E)943.3
Beta (1Y)0.68
Revenue Growth50.13%
EPS GrowthN/A
CountryHK
Employees1,268
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)<0.01
Shares Outstanding256,126,400
10 Day Avg. Volume42,181,423
30 Day Avg. Volume69,032,079
Financial Highlights & Ratios
PEG Ratio-4.01
Price to Book (P/B)4.56
Price to Sales (P/S)1.29
P/FCF Ratio10.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Shandong Molong Petroleum Machinery Business Overview & Revenue Model
Company Description
Shandong Molong Petroleum Machinery Company Limited, together with its subsidiaries, engages in the design, research and development, production, and sale of products and services for the energy equipment industry in the People's Republic of China...
How the Company Makes Money
The company primarily makes money by manufacturing and selling oilfield-related industrial products. Key revenue streams typically include: (1) sales of petroleum tubular goods (such as casing, tubing, and drill-pipe-related products) used in dril...
Shandong Molong Petroleum Machinery Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
38
Negative
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.76B | 1.36B | 1.32B | 2.77B | 3.73B |
| Gross Profit | 170.07M | 33.11M | 101.78M | 52.94M | 172.34M |
| EBITDA | 132.33M | 13.37M | 2.15M | -50.98M | 1.63M |
| Net Income | 5.16M | -43.70M | -566.86M | -424.97M | -368.42M |
Balance Sheet | |||||
| Total Assets | 2.68B | 2.42B | 2.89B | 4.04B | 4.46B |
| Cash, Cash Equivalents and Short-Term Investments | 273.61M | 89.14M | 102.37M | 462.69M | 475.19M |
| Total Debt | 1.53B | 1.46B | 1.65B | 2.12B | 2.10B |
| Total Liabilities | 2.18B | 1.93B | 2.55B | 3.13B | 3.10B |
| Stockholders Equity | 498.09M | 492.27M | 424.01M | 987.96M | 1.41B |
Cash Flow | |||||
| Free Cash Flow | 226.11M | 43.58M | 129.31M | -19.98M | -16.18M |
| Operating Cash Flow | 312.35M | 43.87M | 134.99M | -11.51M | 35.79M |
| Investing Cash Flow | -34.14M | 243.90M | -2.78M | -8.47M | 89.53M |
| Financing Cash Flow | -180.20M | -296.96M | -405.11M | -41.27M | -409.49M |
Shandong Molong Petroleum Machinery Technical Analysis
Negative
3.15
Price Trends
6.63
Negative
7.06
Negative
5.50
Negative
Market Momentum
-0.67
Positive
32.41
Neutral
4.09
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 3.15 is below the 20-day moving average (MA) of 5.33, below the 50-day MA of 6.63, and below the 200-day MA of 5.50, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 32.41 is Neutral, neither overbought nor oversold. The STOCH value of 4.09 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$2.52B | 5.60 | 8.78% | 3.59% | 17.33% | 65.22% | |
67 Neutral | HK$48.19B | 13.49 | 8.25% | 3.59% | 4.22% | 22.46% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | HK$15.52B | 11.37 | 9.55% | 3.43% | 6.40% | 3.53% | |
48 Neutral | HK$380.00M | -1.02 | -11.00% | ― | 4.50% | -1232.04% | |
47 Neutral | HK$255.71M | -11.68 | -10.68% | ― | 58.74% | 56.30% | |
41 Neutral | HK$4.98B | 943.28 | 1.06% | ― | 50.13% | ― |
* Energy Sector Average
HK:0568
Shandong Molong Petroleum Machinery
4.02
-0.16
-3.83%
HK:3337
Anton Oilfield Services Group
0.84
-0.50
-37.31%
HK:2883
China Oilfield Services
6.27
0.05
0.87%
HK:3899
CIMC Enric Holdings
7.34
1.12
17.91%
HK:1623
Hilong Holding Ltd.
0.22
0.11
98.23%
HK:1080
Shengli Oil & Gas Pipe Holdings Ltd.
0.07
0.03
83.33%
Shandong Molong Petroleum Machinery Corporate Events
Shandong Molong Calls July EGM to Approve Non-Public Bond Issuance
Jun 18, 2026
Shandong Molong Petroleum Machinery has called a third extraordinary general meeting for 7 July 2026 in Shouguang, where shareholders will vote on a series of resolutions tied to a planned non-public issuance of corporate and perpetual corporate b...
Shandong Molong Flags Sharp A-Share Slump, Denies Undisclosed Issues
Jun 17, 2026
Shandong Molong Petroleum Machinery reported an unusual movement in its A-share trading after the stock’s closing price fell more than 20% cumulatively over three consecutive sessions from 15 to 17 June 2026, triggering a Shenzhen Stock Exch...
Shandong Molong Sets AGM to Seek New Credit Lines and H-Share Issuance Mandate
Apr 29, 2026
Shandong Molong Petroleum Machinery has called its annual general meeting for 30 June 2026 in Shouguang, Shandong, where shareholders will review the 2025 board and annual reports, approve the profit distribution plan, and consider a package of fi...
Shandong Molong Posts Surging Q1 2026 Revenue but Weaker Cash Flow
Apr 21, 2026
Shandong Molong Petroleum Machinery reported a sharp year-on-year rise in first-quarter 2026 operating revenue to RMB 665.9 million, an increase of 128.53%, while net profit attributable to shareholders edged up 2.96% to RMB 5.58 million. Profit a...
Shandong Molong Wins Shareholder Approval for New H-Share Issuance Mandate
Apr 8, 2026
Shandong Molong Petroleum Machinery Company Limited reported the results of its extraordinary general meeting held on 8 April 2026 in Shouguang City, Shandong Province, where shareholders voted on a mandate related to the issuance of H shares. Sha...
Shandong Molong Sets Board Meeting to Approve First-Quarter 2026 Results
Apr 2, 2026
Shandong Molong Petroleum Machinery Company Limited has scheduled a board meeting for April 21, 2026, in Shouguang City, Shandong Province, to review and approve the unaudited first-quarter results for the three months ended March 31, 2026, and to...
Shandong Molong Swings Back to Profit on Nearly 30% Revenue Jump in 2025
Mar 31, 2026
Shandong Molong Petroleum Machinery reported a sharp rebound in performance for 2025, with operating revenue rising nearly 30% year-on-year to RMB1.76 billion as the group benefited from stronger business activity. Profit attributable to equity ho...
Shandong Molong Cuts Huarong Agricultural Receivable, Sees Limited Impact on Operations
Mar 31, 2026
Shandong Molong Petroleum Machinery has received RMB 30 million in cash from Huarong Agricultural under an existing repayment agreement, reducing the outstanding accounts receivable from RMB 91.45 million to RMB 61.45 million, or about 12.34% of i...
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.