CHK Oil (0632) AI Stock Analysis

• Market Cap: HK$205.11M
• Dividend Yield: N/A
• Average Volume (3M): 10.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 4.66
• Revenue Growth: -2.17%
• EPS Growth: 63.26%
• Country: HK
• Employees: 20
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.01
• Shares Outstanding: 869,353,700
• 10 Day Avg. Volume: 9,470,563
• 30 Day Avg. Volume: 10,364,427
• PEG Ratio: 0.37
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 2.97
• P/FCF Ratio: 27.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.26 ▲(42.22% Upside)

The score is held down primarily by weak financial performance—persistent losses and negative free cash flow outweigh moderate leverage. Technicals provide only partial support with short-term strength but a still-weak longer-term trend, while valuation is not compelling due to a loss-making (negative P/E) profile and no dividend yield.

Positive Factors

Moderate leverage

A relatively low debt-to-equity ratio indicates moderate leverage, giving CHK Oil more financial flexibility over the medium term. This reduces immediate default risk and interest burden, allowing management to focus on operational improvements or selective investments without urgent refinancing pressure.

Reasonable equity ratio

A reasonable equity ratio provides a capital buffer to absorb ongoing losses and supports solvency during a turnaround. Over several quarters this buffer can prevent forced asset sales and preserve borrowing capacity, enabling the company to execute restructuring or operational recovery plans.

EBITDA improvement in 2024

An improving EBITDA suggests operational cost control or stabilization of core operations. If sustained, it forms a durable foundation for margin recovery and improved cash conversion, making longer-term profitability and reduced financing needs more achievable over a multi-quarter horizon.

Negative Factors

Persistent losses and declining revenue

Persistent losses and falling revenue weaken the firm's earnings power and erode retained capital. Over months this depletes reserves, constrains investment capacity, and forces difficult choices between cost cuts, asset sales, or dilutive financing—each harming long-term competitive position.

Consistently negative free cash flow

Sustained negative free cash flow and absent operating/investing cash flows indicate structural liquidity stress. This undermines the ability to self-fund operations or capex, raising reliance on external financing and increasing refinancing, interest, and dilution risks over the medium term.

Erosion in equity and assets

Declining equity and asset bases weaken balance-sheet resilience and reduce collateral for lenders. Structurally, this limits financing options, increases borrowing costs or covenant risk, and may force asset disposals or equity issuance that impair the company's ability to execute long-term recovery strategies.

CHK Oil Business Overview & Revenue Model

Company Description

CHK Oil Limited, an investment holding company, engages in the exploration, exploitation, development, production, and sale of oil and natural gas in Hong Kong, the United States, and the People Republic of China. The company holds an exploitation interest in the Utah Gas and Oil Field project located in Utah, the United States. It also trades in oil and oil-related products; and provides corporate services. The company was formerly known as Pearl Oriental Oil Limited and changed its name to CHK Oil Limited in February 2020. CHK Oil Limited is based in Tsim Sha Tsui, Hong Kong. CHK Oil Limited operates as a subsidiary of Xin Hua Petroleum (Hong Kong) Limited.

How the Company Makes Money

CHK Oil generates revenue primarily through the sale of crude oil, natural gas, and refined petroleum products. The company has established key revenue streams from its upstream operations, which involve the exploration and extraction of oil and gas reserves. Additionally, revenue is derived from midstream activities, including the transportation and storage of hydrocarbons, and downstream operations focused on refining oil into various products such as gasoline, diesel, and lubricants. Strategic partnerships with other energy companies and service providers enhance its operational efficiency and market reach, further contributing to its earnings. The company also benefits from fluctuating oil prices, which can significantly impact its revenue based on market demand and supply dynamics.

CHK Oil Financial Statement Overview

Summary

Financials are weak overall: the income statement shows persistent losses and declining revenue, cash flow is particularly concerning with consistently negative free cash flow and liquidity stress signals, and while leverage appears moderate, equity and assets have been eroding—raising longer-term stability risk.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.81M	153.13M	161.50M	355.28M	1.53B	736.76M
Gross Profit	2.30M	2.17M	1.51M	15.28M	95.81M	42.28M
EBITDA	35.35M	-11.23M	-57.10M	11.20M	192.00M	28.41M
Net Income	-20.20M	-21.48M	-49.55M	-1.19M	147.82M	8.72M
Balance Sheet
Total Assets	284.96M	284.96M	533.04M	553.50M	617.54M	542.62M
Cash, Cash Equivalents and Short-Term Investments	1.92M	13.51M	1.25M	15.15M	9.07M	27.95M
Total Debt	12.60M	15.79M	20.30M	4.63M	3.10M	2.68M
Total Liabilities	54.60M	56.31M	124.77M	92.84M	145.63M	224.47M
Stockholders Equity	229.35M	227.63M	407.26M	459.65M	470.89M	317.13M
Cash Flow
Free Cash Flow	-25.82M	16.60M	-28.75M	8.82M	-23.15M	-34.22M
Operating Cash Flow	-25.60M	16.82M	-28.66M	8.97M	-23.10M	-34.06M
Investing Cash Flow	-162.00K	-216.00K	-88.00K	-156.00K	237.00K	-151.00K
Financing Cash Flow	-1.08M	-4.32M	14.89M	-3.48M	199.00K	5.32M

CHK Oil Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0632, the sentiment is Neutral. The current price of 0.18 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.24, and below the 200-day MA of 0.43, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0632.

CHK Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0467	65 Neutral	HK$16.63B	12.75	9.73%	20.93%	8.65%	―
3395	44 Neutral	HK$203.70M	-1.34	―	―	-9.85%	20.71%
0632	43 Neutral	HK$205.11M	-9.96	-8.65%	―	-2.17%	63.26%
2012	42 Neutral	HK$228.54M	-0.35	-113.92%	―	-92.37%	-49.00%
1555	41 Neutral	HK$98.03M	-0.25	―	―	-18.76%	-76.89%

CHK Oil Corporate Events

CHK Oil Limited Expands Market Reach with New Service Agreements

CHK Oil Limited has announced that its subsidiaries, Liaoning Port Oil Technology Co., Ltd. and Palm Energy (Hainan) Co., Ltd., have entered into agreements with Zhejiang Dumei Electronics Technology Co., Ltd. to provide market development and technical services for the sale of intelligent oil and gas extraction equipment. These agreements, each with a 10-year term, aim to leverage CHK Oil’s market resources and technical expertise to enhance Dumei’s customer base and sales in the PRC and international markets. This strategic move is expected to strengthen CHK Oil’s position in the oil extraction industry and expand its influence in both domestic and global markets.

The most recent analyst rating on (HK:0632) stock is a Sell with a HK$0.50 price target. To see the full list of analyst forecasts on CHK Oil stock, see the HK:0632 Stock Forecast page.

CHK Oil’s Controlling Shareholder Pledges Shares for Loan

CHK Oil Limited announced that its controlling shareholder, Xin Hua Petroleum (Hong Kong) Limited, has pledged 80,000,000 ordinary shares of the company as collateral for a non-recourse loan of approximately HK$16,000,000 from Squadron Funding Capitalization Investor SPV2025, Ltd. This move, involving about 9.20% of the company’s issued share capital, highlights a strategic financial maneuver that could impact the company’s market dynamics and shareholder interests.

The most recent analyst rating on (HK:0632) stock is a Sell with a HK$0.50 price target. To see the full list of analyst forecasts on CHK Oil stock, see the HK:0632 Stock Forecast page.

CHK Oil Explores New Horizons with Kazakhstan Oilfield Cooperation

CHK Oil Limited has entered into a Memorandum of Understanding with Aral Petroleum Capital LLP to explore potential cooperation in oilfield exploration and production in Kazakhstan. This move aims to diversify CHK Oil’s income stream and expand its operations beyond China and the US, leveraging its expertise in advanced oil and gas extraction technologies to enhance productivity and operational efficiency in Kazakhstan, which aligns with the Belt and Road initiative.

The most recent analyst rating on (HK:0632) stock is a Sell with a HK$0.50 price target. To see the full list of analyst forecasts on CHK Oil stock, see the HK:0632 Stock Forecast page.