Shengli Oil & Gas Pipe Holdings Ltd. (1080) AI Stock Analysis

• Market Cap: HK$337.07M
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 0.97%
• EPS Growth: 33.70%
• Country: HK
• Employees: 461
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): >-0.01
• Shares Outstanding: 3,874,365,500
• 10 Day Avg. Volume: 1,509,770
• 30 Day Avg. Volume: 2,061,206
• PEG Ratio: 0.05
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 8.60
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.07 ▼(-8.75% Downside)

The overall stock score of 43 reflects significant financial challenges, as evidenced by declining revenues and persistent losses. Technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation concerns. These factors collectively indicate a high-risk investment with limited short-term upside potential.

Positive Factors

Global Market Reach

The company's global market presence allows it to tap into diverse revenue streams, reducing dependency on any single market and enhancing resilience against regional downturns.

Long-term Contracts

Long-term contracts provide stable income and predictability, allowing for better financial planning and reduced revenue volatility, crucial for long-term business sustainability.

Product Offering

Specialization in high-quality products positions the company as a reliable supplier in the oil and gas industry, potentially leading to strong customer loyalty and competitive advantage.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market share or pricing power, which could undermine long-term growth prospects and financial health.

Financial Leverage

Higher leverage increases financial risk, potentially leading to higher interest expenses and reduced flexibility in times of financial stress, impacting long-term stability.

Negative Cash Flow

Negative cash flow suggests liquidity issues, limiting the company's ability to invest in growth opportunities or weather economic downturns, affecting long-term viability.

Shengli Oil & Gas Pipe Holdings Ltd. Business Overview & Revenue Model

Company Description

Shengli Oil & Gas Pipe Holdings Limited, an investment holding company, designs, processes, manufactures, and sells welded pipes for oil and gas pipeline, and other construction and manufacturing applications in Mainland China and Hong Kong. The company operates through two segments, Pipes Business and Trading Business. It produces submerged-arc helical and longitudinal welded pipes that are primarily used to transport crude oil, refined petroleum products, natural gas, and other related products, as well as used for the oil and infrastructure industry. The company also engages in the provision of anti-corrosion services for oil and gas pipelines, and other construction and manufacturing applications; trading of environmental energy equipment, fuel oil and chemical products, and commodities; and provision of new energy technical development services. In addition, it offers anti-corrosion technical and rental services; and trades in rolled coils. Shengli Oil & Gas Pipe Holdings Limited was founded in 1972 and is headquartered in Zibo, the People's Republic of China.

How the Company Makes Money

The company generates revenue primarily through the manufacturing and sale of steel pipes and related products, which are essential for the oil and gas sector. Key revenue streams include the sale of seamless and welded pipes, as well as pipe fittings and accessories. Shengli Oil & Gas Pipe Holdings Ltd. benefits from long-term contracts and relationships with major oil and gas companies and contractors, providing a stable source of income. Additionally, the company may engage in partnerships or joint ventures to expand its market reach and enhance its product offerings, which can contribute to its overall earnings. Fluctuations in oil prices and demand for energy can also significantly impact its revenue, as these factors influence the investment levels in exploration and production activities by its clients.

Shengli Oil & Gas Pipe Holdings Ltd. Financial Statement Overview

Summary

Shengli Oil & Gas Pipe Holdings Ltd. faces significant financial challenges, marked by declining revenues, persistent losses, and unstable cash flows. The balance sheet reflects increasing financial leverage and reduced equity, raising concerns about financial stability. These issues highlight the need for strategic changes to improve profitability and strengthen the company's financial health.

Income Statement

The company has consistently reported declining revenues over the years with a recent slight uptick in gross profit margin from 2023 to 2024. However, it continues to suffer from negative EBIT and net income, indicating ongoing operational challenges and inability to cover operating expenses with revenue.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio and declining stockholders' equity, reflecting a weakening financial position. The equity ratio has been decreasing, indicating increased reliance on liabilities over equity. Despite these weaknesses, the company maintains a reasonable level of cash and short-term investments.

Cash Flow

The company experienced significant fluctuations in free cash flow, with negative free cash flow in recent years, indicating potential liquidity issues. The operating cash flow has also been inconsistent, aligning with the challenges in maintaining positive net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	611.29M	570.07M	591.88M	1.05B	1.53B	856.43M
Gross Profit	67.13M	59.14M	33.46M	101.98M	135.82M	44.23M
EBITDA	-26.38M	-32.68M	-76.44M	-24.30M	-131.42M	-232.40M
Net Income	-42.99M	-42.56M	-98.41M	-33.00M	-260.72M	-325.39M
Balance Sheet
Total Assets	1.02B	1.06B	1.08B	1.16B	1.92B	2.24B
Cash, Cash Equivalents and Short-Term Investments	119.66M	127.72M	150.51M	176.27M	151.77M	129.97M
Total Debt	339.32M	310.88M	331.53M	324.07M	692.19M	782.75M
Total Liabilities	633.60M	637.17M	580.15M	553.81M	1.29B	1.38B
Stockholders Equity	380.05M	418.18M	495.20M	593.54M	626.43M	841.60M
Cash Flow
Free Cash Flow	100.70M	13.11M	-34.71M	39.90M	-5.77M	92.05M
Operating Cash Flow	103.24M	16.24M	-26.70M	54.94M	38.44M	120.01M
Investing Cash Flow	-29.30M	9.00M	12.03M	-151.42M	57.39M	-66.06M
Financing Cash Flow	-1.66M	-34.84M	-6.79M	121.09M	-74.98M	-40.33M

Shengli Oil & Gas Pipe Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1080, the sentiment is Positive. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 67.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1080.

Shengli Oil & Gas Pipe Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0353	68 Neutral	HK$329.57M	1.22	22.21%	―	-5.34%	400.80%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0206	62 Neutral	HK$870.00M	15.61	3.95%	3.85%	-8.93%	-25.43%
1623	48 Neutral	HK$334.20M	-0.88	-11.09%	―	-2.11%	-779.00%
1921	48 Neutral	HK$11.14B	-457.06	-1.68%	―	4.66%	-432.65%
2178	48 Neutral	HK$88.06M	-2.84	-16.54%	―	-36.59%	48.63%
1080	43 Neutral	HK$337.07M	-6.83	-10.68%	―	0.97%	33.70%

Shengli Oil & Gas Pipe Holdings Ltd. Corporate Events

Shengli Oil & Gas Pipe Holdings Ltd. Reassesses Disposal Strategy After Unsuccessful Tender

Shengli Oil & Gas Pipe Holdings Ltd. announced that no potential bidders were identified by the expiration of the public tender period for the potential disposal of equity interest in a target company. As a result, the company will reassess its strategy for the disposal and will provide further updates as necessary. This development may impact the company’s operational strategy and could influence investor decisions.