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CHK Oil (HK:0632)
:0632
Hong Kong Market

CHK Oil (0632) AI Stock Analysis

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HK

CHK Oil

(0632)

Rating:43Neutral
Price Target:
CHK Oil's overall stock score is primarily impacted by its poor financial performance, with persistent losses and liquidity challenges being significant concerns. Technical analysis provides some short-term optimism, but the negative valuation metrics highlight ongoing operational difficulties. Investors should be cautious given the financial instability and lack of dividend yield.

CHK Oil (0632) vs. iShares MSCI Hong Kong ETF (EWH)

CHK Oil Business Overview & Revenue Model

Company DescriptionCHK Oil (0632) is a company engaged in the exploration, development, and production of crude oil. The company operates within the energy sector, focusing on upstream activities that involve the extraction of oil resources. CHK Oil is committed to leveraging advanced technologies to enhance oil recovery and sustain its operations in the competitive oil industry.
How the Company Makes MoneyCHK Oil makes money primarily through the exploration and production of crude oil, which it sells to various refineries and distributors. The company's revenue model is based on the extraction and sale of oil, and it earns income by selling the crude oil it produces at market prices. The key revenue streams include the direct sale of crude oil and potential partnerships or joint ventures with other oil companies that enhance its production capabilities or market reach. The company's earnings are significantly influenced by global oil prices, production volumes, and operational efficiencies. Additionally, CHK Oil may engage in hedging activities to mitigate the risks associated with fluctuating oil prices.

CHK Oil Financial Statement Overview

Summary
CHK Oil faces significant financial difficulties, characterized by persistent losses, declining revenues, and negative cash flows. While the debt levels are manageable, the company struggles with profitability and cash generation, suggesting urgent need for operational improvements and strategic adjustments to stabilize its financial position.
Income Statement
30
Negative
CHK Oil's income statement shows considerable challenges with persistent losses and declining revenue over recent years. The gross profit margin is low, and the company has experienced significant EBIT and net income losses. Despite some improvement in EBITDA in 2024, overall profitability remains weak, with negative net profit margins indicating ongoing difficulties in operational efficiency.
Balance Sheet
45
Neutral
The balance sheet reflects a mixed picture. The company maintains a relatively low debt-to-equity ratio, suggesting moderate leverage. However, the declining stockholders' equity and total assets indicate potential instability. The equity ratio is reasonable, but the erosion in equity and assets over time poses a risk to long-term financial health.
Cash Flow
20
Very Negative
CHK Oil's cash flow statements reveal critical issues, with consistently negative free cash flow, indicating operational cash outflows exceeding inflows. The lack of positive operating cash flow to net income and free cash flow to net income ratios further highlights liquidity challenges. In 2024, there was no reported operating or investing cash flow, signaling possible cash management concerns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue153.13M161.50M355.28M1.53B736.76M
Gross Profit2.17M1.51M15.28M95.81M42.28M
EBITDA-11.23M-57.10M11.20M192.00M28.41M
Net Income-21.48M-49.55M-1.19M147.82M8.72M
Balance Sheet
Total Assets284.96M533.04M553.50M617.54M542.62M
Cash, Cash Equivalents and Short-Term Investments13.51M1.25M15.15M9.07M27.95M
Total Debt15.79M20.30M4.63M3.10M2.68M
Total Liabilities56.31M124.77M92.84M145.63M224.47M
Stockholders Equity227.63M407.26M459.65M470.89M317.13M
Cash Flow
Free Cash Flow0.00-28.75M8.82M-23.15M-34.22M
Operating Cash Flow16.55M-28.66M8.97M-23.10M-34.06M
Investing Cash Flow0.00-88.00K-156.00K237.00K-151.00K
Financing Cash Flow0.0014.89M-3.48M199.00K5.32M

CHK Oil Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.57
Price Trends
50DMA
0.57
Negative
100DMA
0.49
Positive
200DMA
0.39
Positive
Market Momentum
MACD
<0.01
Positive
RSI
43.55
Neutral
STOCH
21.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0632, the sentiment is Negative. The current price of 0.57 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.57, and above the 200-day MA of 0.39, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0632.

CHK Oil Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$846.52B9.8412.78%7.89%-7.73%-6.97%
73
Outperform
$1.67T7.24
8.02%-7.86%1.52%
67
Neutral
$690.55B11.25
3.65%-7.72%-26.66%
65
Neutral
$67.45B10.449.26%4.13%3.46%2.53%
57
Neutral
HK$22.06B16.33-15.60%16.01%10.12%-85.27%
43
Neutral
HK$495.39M-6.77%-5.18%56.71%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0632
CHK Oil
0.57
0.49
612.50%
HK:0386
China Petroleum & Chemical
4.18
-0.59
-12.42%
HK:1088
China Shenhua Energy Co
31.05
-3.35
-9.73%
HK:0857
PetroChina Company
6.81
-0.96
-12.36%
HK:0135
KUNLUN ENERGY
7.79
-0.77
-9.01%

CHK Oil Corporate Events

CHK Oil Announces Director Resignation
Apr 29, 2025

CHK Oil Limited announced the resignation of Ms. Yang Yuyan from her position as an executive director and all other duties within the group, effective April 29, 2025, due to personal work and business commitments. The company expressed gratitude for her contributions and confirmed there are no disagreements or issues to report to shareholders or the Stock Exchange of Hong Kong.

CHK Oil Limited Announces Board Composition and Committee Roles
Apr 29, 2025

CHK Oil Limited has announced the composition of its board of directors and the roles of its members, including executive, non-executive, and independent non-executive directors. The company has also established three committees: Audit, Remuneration, and Nomination, each with designated members. This organizational structure aims to enhance corporate governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder confidence.

CHK Oil Limited Announces Board and Committee Roles
Apr 28, 2025

CHK Oil Limited has announced the composition of its board of directors and the roles within its committees. This update highlights the leadership structure, which includes executive, non-executive, and independent non-executive directors, and outlines the members of the audit, remuneration, and nomination committees. This organizational clarity may impact the company’s governance and operational efficiency.

CHK Oil Limited Announces 2025 Annual General Meeting and Share Issuance Plans
Apr 24, 2025

CHK Oil Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 27, 2025, in Hong Kong. The meeting will cover the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks shareholder approval to authorize directors to issue and manage shares, with limitations on the aggregate number of shares to be allotted. This announcement is significant for stakeholders as it outlines strategic decisions that could impact the company’s capital structure and governance.

CHK Oil Completes Loan Capitalisation with New Share Issuance
Apr 3, 2025

CHK Oil Limited has completed a connected transaction involving loan capitalisation, resulting in the issuance of new shares under a specific mandate. The transaction led to the allotment and issuance of 12,048,192 Capitalisation Shares to Xin Hua at an issue price of HK$0.415 per share, slightly altering the company’s shareholding structure. This move increases Xin Hua’s stake in the company from 67.67% to 68.12%, while public shareholders’ stake decreases marginally.

CHK Oil Limited Reports Annual Financial Results for 2024
Mar 28, 2025

CHK Oil Limited reported its consolidated annual results for the year ending December 31, 2024, showing a decrease in revenue from HK$161,497,000 in 2023 to HK$153,126,000 in 2024. Despite a slight increase in gross profit, the company experienced a total comprehensive loss of HK$24,690,000, attributed to increased administrative expenses and impairment losses. This financial performance highlights ongoing challenges in managing costs and asset impairments, impacting the company’s profitability and stakeholder interests.

CHK Oil Limited Announces Director Resignation
Mar 28, 2025

CHK Oil Limited announced the resignation of Ms. Sun Xiaoze from her position as an executive director, effective April 28, 2025, due to personal work and business commitments. The company expressed gratitude for her contributions and confirmed there were no disagreements or issues requiring shareholder attention.

CHK Oil Strengthens Governance with New Audit Committee
Mar 28, 2025

CHK Oil has announced the establishment of an Audit Committee, which is composed entirely of non-executive directors, with a majority being independent. This strategic move aims to enhance the company’s governance and compliance with the Hong Kong Stock Exchange’s listing rules. The Audit Committee is tasked with overseeing financial reporting and auditing processes, meeting at least twice a year, and ensuring transparency and accountability in the company’s financial operations.

CHK Oil Strengthens Governance with Nomination Committee Guidelines
Mar 28, 2025

CHK Oil has announced the terms of reference for its Nomination Committee, which is a subcommittee of the board of directors. The committee, established in 2012, is responsible for nominating executive directors and is composed of at least three board members, with a majority being independent non-executive directors. The committee is authorized to consult with senior management and seek independent professional advice if necessary, ensuring it has sufficient resources to fulfill its duties. This structure aims to enhance governance and transparency in the company’s leadership appointments.

CHK Oil Updates Remuneration Committee Terms
Mar 28, 2025

CHK Oil has announced the terms of reference for its Remuneration Committee, a subcommittee of the Board of Directors. The Committee, established in 2006, is responsible for overseeing the remuneration policies of the company and is composed mainly of independent non-executive directors. The announcement outlines the Committee’s structure, meeting protocols, and its authority to consult with senior management and seek professional advice, which is crucial for maintaining transparency and fairness in executive compensation.

CHK Oil Limited Approves Loan Settlement and Share Issuance
Mar 21, 2025

CHK Oil Limited announced that during its Special General Meeting held on March 21, 2025, an ordinary resolution was passed by independent shareholders. The resolution approved a loan settlement agreement with Xin Hua Petroleum, allowing for the capitalisation of a HK$5,000,000 loan through the issuance of 12,048,192 new shares at HK$0.415 each. This decision reflects the company’s strategic financial management and strengthens its capital structure, potentially impacting its market positioning and shareholder value.

CHK Oil Limited Schedules Board Meeting to Discuss Annual Results and Dividend
Mar 18, 2025

CHK Oil Limited has announced that its Board of Directors will convene a meeting on March 28, 2025, to review and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the possibility of declaring a final dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder value, potentially impacting its market positioning and stakeholder confidence.

CHK Oil Limited Announces Change in Share Registrar
Feb 7, 2025

CHK Oil Limited, listed on the Hong Kong Stock Exchange, announced a change in its share registrar and transfer office in Hong Kong, effective from March 7, 2025. The new registrar will be Tricor Investor Services Limited, and stakeholders are advised to direct future share registration and transfers to this new office from the specified date.

CHK Oil Completes Share Placement to Boost US Operations
Feb 5, 2025

CHK Oil Limited has successfully completed a placement of 15,426,000 new shares, raising approximately HK$5.5 million in net proceeds. This strategic financial move will support the company’s U.S. oil field operations and general business needs, slightly altering the company’s shareholding structure without creating any substantial new shareholders.

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: Apr 20, 2025