SPT Energy Group (1251) AI Stock Analysis

• Market Cap: $566.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -10.89%
• EPS Growth: -335.83%
• Country: HK
• Employees: 3,985
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Oil & Gas Integrated
• EPS (TTM): -0.03
• Shares Outstanding: 1,953,924,000
• 10 Day Avg. Volume: 1,912,200
• 30 Day Avg. Volume: 1,169,800
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 0.68
• Enterprise Value/Ebitda: 31.38
• 1Y Price Target: $0.47
• Price Target Upside: 61.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: HK$0.50 ▲(72.41% Upside)

The overall stock score is primarily influenced by the company's weak financial performance, characterized by declining revenues, profitability, and cash flow generation. While technical analysis shows some positive momentum, the negative valuation metrics further weigh down the score.

SPT Energy Group Business Overview & Revenue Model

Company Description

SPT Energy Group Inc., an investment holding company, provides integrated oilfield services; and manufactures and sells oilfield services related products in the People's Republic of China, Kazakhstan, Turkmenistan, Canada, Singapore, Indonesia, the Middle East, and internationally. It operates through three segments: Drilling, Well Completion, and Reservoir. The company offers drilling services, including drilling rig, workover rig, complex well workover and fishing, cementing and drilling fluid services, etc., as well as rotary geosteering, vertical drilling, horizontal drilling, side tracking, underbalanced drilling, and fine managed pressure drilling technology services. It also provides well completion project design, well completion tools, and stimulation and fracturing services. In addition, the company offers geology research and oil reservoir research, dynamic monitoring, oil testing and recovery technology, coiled tubing service, and repair service of surface production devices, etc. Further, it is also involved in farming, trading, and manufacturing activities; the promotion of technology and application services; and the provision of gas operation and services. SPT Energy Group Inc. was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

SPT Energy Group generates revenue through several key streams, predominantly from its drilling and well services, which include contract drilling, workover services, and the provision of equipment and technology solutions. The company enters into contracts with oil and gas companies, securing fees for its services based on the scope and complexity of projects. Significant partnerships with major energy firms enhance its market position and lead to larger contracts, while the company's investment in technological advancements allows it to offer more efficient and cost-effective services, thereby increasing its competitiveness and profitability.

SPT Energy Group Financial Statement Overview

Summary

SPT Energy Group is facing significant financial challenges, with declining revenues and profitability, moderate leverage, and weak cash flow generation. The negative trends in key financial metrics suggest operational inefficiencies and potential liquidity concerns.

Income Statement

The income statement shows a declining trend in revenue with a negative revenue growth rate of -9.65% in the latest year. The company has also experienced a significant drop in profitability, with a negative net profit margin of -15.12% and negative EBIT and EBITDA margins. This indicates operational challenges and declining profitability.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.64. However, the return on equity is negative at -25.06%, indicating inefficiencies in generating returns on shareholder investments. The equity ratio is not provided, but the overall financial stability appears to be under pressure.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow growth at -151.25%. The operating cash flow to net income ratio is low at 0.0186, suggesting challenges in converting income into cash. The free cash flow to net income ratio is positive but low, indicating limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.69B	1.95B	1.77B	1.59B	1.29B
Gross Profit	1.07B	1.14B	1.10B	1.10B	957.79M	721.00M
EBITDA	23.10M	-163.60M	120.46M	127.86M	98.10M	16.84M
Net Income	-55.34M	-256.23M	16.75M	13.24M	8.79M	-91.19M
Balance Sheet
Total Assets	2.62B	2.51B	2.91B	2.88B	2.79B	2.70B
Cash, Cash Equivalents and Short-Term Investments	276.10M	389.23M	355.29M	343.24M	430.33M	386.29M
Total Debt	635.81M	656.75M	517.64M	570.64M	641.89M	556.21M
Total Liabilities	1.40B	1.51B	1.63B	1.66B	1.58B	1.47B
Stockholders Equity	1.24B	1.02B	1.30B	1.23B	1.19B	1.21B
Cash Flow
Free Cash Flow	-8.11M	4.15M	88.37M	-19.87M	744.00K	-271.00M
Operating Cash Flow	49.24M	26.38M	142.10M	4.61M	12.67M	-162.36M
Investing Cash Flow	-69.43M	-32.71M	-60.91M	-10.99M	8.28M	-131.77M
Financing Cash Flow	86.15M	98.06M	-58.34M	-86.18M	21.55M	43.24M

SPT Energy Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1251, the sentiment is Positive. The current price of 0.29 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 83.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1251.

SPT Energy Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0857	79 Outperform	1.59T	7.71	10.87%	7.23%	-10.41%	-3.12%
0386	60 Neutral	650.81B	12.94	6.00%	6.12%	-9.86%	-37.24%
0346	53 Neutral	462.04M	8.79	4.34%	―	-32.19%	-70.01%
1251	52 Neutral	$566.64M	―	―	―	-10.89%	-335.83%
0931	52 Neutral	3.16B	-26.56	-47.02%	―	57.62%	32.20%
0228	49 Neutral	413.62M	85.00	1.54%	―	-23.19%	-94.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

SPT Energy Group Corporate Events

SPT Energy Group Announces 2025 Annual General Meeting

SPT Energy Group Inc. has announced its upcoming Annual General Meeting, scheduled for August 26, 2025, in Hong Kong. Key agenda items include the adoption of the company’s financial statements for 2024, re-election of directors, and the re-appointment of CCTH CPA Limited as the auditor. The meeting will also address the authorization for directors to manage share allotments and related financial instruments, potentially impacting the company’s capital structure and shareholder value.

SPT Energy Group Reports Financial Decline for 2024

SPT Energy Group Inc. reported a significant decline in its financial performance for the year ended 31 December 2024, with revenue dropping by 13% to RMB1,694.1 million and a loss of RMB256.2 million attributable to equity owners, compared to a profit of RMB16.7 million in the previous year. The company did not propose a final dividend for 2024, indicating a challenging year for its operations and potentially impacting investor confidence.

SPT Energy Group Forms Nomination Committee to Strengthen Board Governance

SPT Energy Group Inc. has established a Nomination Committee to oversee the nomination process for its board of directors. The committee, which will consist of at least three members with a majority being independent non-executive directors, is tasked with reviewing the board’s structure, identifying qualified candidates, assessing director independence, and making recommendations on appointments and succession planning. This move is aimed at enhancing the company’s corporate governance and aligning its board composition with its strategic goals.

SPT Energy Group Issues Profit Warning Amid Market Challenges

SPT Energy Group Inc. has issued a profit warning, indicating an expected net loss of RMB250 million to RMB300 million for the year ending December 31, 2024, compared to a net profit of RMB16.7 million the previous year. This downturn is attributed to reduced workdays due to extreme weather in Kazakhstan, asset impairment provisions, and decreased revenue and profitability due to customer cost-cutting measures and intense market competition. Trading of the company’s shares on the Hong Kong Stock Exchange remains suspended, and stakeholders are advised to exercise caution.

SPT Energy Group Announces Board Meeting Amid Trading Suspension

SPT Energy Group Inc. has announced a board meeting scheduled for June 27, 2025, to review and approve the company’s annual results for 2024 and discuss the potential declaration of a final dividend. Additionally, the company has announced the continued suspension of its trading on the Hong Kong Stock Exchange, advising shareholders and potential investors to exercise caution.

SPT Energy Group Announces New Finance Lease Agreement

SPT Energy Group Inc. announced a new finance lease agreement involving its subsidiary, Sinopetroleum Technology Inc., which entered into a transaction with Zhongguancun Science-Tech. The agreement involves the sale and leaseback of oil and gas drilling equipment valued at RMB14,500,000, with a total lease payment of RMB16,086,559 over a 36-month period. This transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, indicating a strategic move to optimize asset management and financial structuring, potentially impacting the company’s financial flexibility and operational capacity in the energy sector.