SPT Energy Group (1251) AI Stock Analysis

• Market Cap: HK$371.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• 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: 1,954,136,000
• 10 Day Avg. Volume: 1,162,400
• 30 Day Avg. Volume: 1,186,400
• PEG Ratio: <0.01
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 55.22
• 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: 46 Neutral
• Price Target: HK$0.18 ▼(-4.21% Downside)

The overall stock score is primarily influenced by significant financial challenges, including declining revenues and profitability, moderate leverage, and weak cash flow generation. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings and lack of dividend yield.

Positive Factors

International Expansion

SPT Energy Group's international expansion diversifies its revenue base and reduces dependency on the domestic market, enhancing long-term growth prospects.

Service Contract Stability

Stable service contracts with major oil companies provide a reliable revenue stream, supporting financial stability and long-term business sustainability.

Growing Demand for Energy

Rising energy demand supports increased investment in exploration and production, potentially boosting SPT Energy Group's service demand and revenue growth.

Negative Factors

Declining Revenue

A consistent decline in revenue indicates challenges in market competitiveness and demand, potentially impacting long-term financial health.

Negative Profitability

Negative profitability suggests operational inefficiencies and challenges in cost management, threatening long-term viability and shareholder value.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to reinvest in growth opportunities and manage debt, posing risks to financial stability.

SPT Energy Group Business Overview & Revenue Model

Company Description

SPT Energy Group Inc. is a leading provider of integrated energy services in the oil and gas industry, specializing in drilling, completion, and production services. The company operates primarily in China and has expanded its operations internationally, offering a range of services including drilling rigs, drilling fluid systems, and technical support. SPT Energy Group focuses on both onshore and offshore oil and gas exploration, catering to a diverse client base that includes national and international oil companies.

How the Company Makes Money

SPT Energy Group generates revenue primarily through its service contracts in the oil and gas sector. The company's key revenue streams include fees from drilling services, completion services, and production enhancement services. Additionally, it earns income from the sale of equipment and materials used in drilling operations. Significant partnerships with major oil companies and ongoing contracts for exploration and production services contribute to its earnings stability. The company also benefits from the growing demand for energy resources, which drives investment in oil and gas exploration and production activities.

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	1.67B	1.69B	1.95B	1.77B	1.59B	1.29B
Gross Profit	892.29M	1.14B	1.10B	1.10B	957.79M	721.00M
EBITDA	-116.14M	-163.60M	120.46M	127.86M	98.10M	16.84M
Net Income	-241.43M	-256.23M	16.75M	13.24M	8.79M	-91.19M
Balance Sheet
Total Assets	2.27B	2.51B	2.91B	2.88B	2.79B	2.70B
Cash, Cash Equivalents and Short-Term Investments	296.49M	389.23M	355.29M	343.24M	430.33M	386.29M
Total Debt	646.68M	656.75M	517.64M	570.64M	641.89M	556.21M
Total Liabilities	1.32B	1.51B	1.63B	1.66B	1.58B	1.47B
Stockholders Equity	976.39M	1.02B	1.30B	1.23B	1.19B	1.21B
Cash Flow
Free Cash Flow	26.65M	4.15M	88.37M	-19.87M	744.00K	-271.00M
Operating Cash Flow	45.98M	26.38M	142.10M	4.61M	12.67M	-162.36M
Investing Cash Flow	-15.26M	-32.71M	-60.91M	-10.99M	8.28M	-131.77M
Financing Cash Flow	-17.70M	98.06M	-58.34M	-86.18M	21.55M	43.24M

SPT Energy Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 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:1251, the sentiment is Negative. The current price of 0.19 is above the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.20, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 20.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	73 Outperform	HK$1.88T	8.59	10.16%	6.40%	-6.92%	-2.57%
0386	67 Neutral	$729.18B	13.69	―	5.70%	-10.02%	-27.89%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0228	59 Neutral	HK$437.95M	97.30	0.25%	―	-23.19%	-94.80%
0346	51 Neutral	HK$412.54M	7.85	4.17%	―	-32.19%	-70.01%
0931	49 Neutral	HK$3.94B	-29.44	-40.82%	―	23.08%	23.40%
1251	46 Neutral	HK$371.29M	-1.42	―	―	-10.89%	-335.83%

SPT Energy Group Corporate Events

SPT Energy Group Secures Development Rights for Talara Oilfield in Peru

SPT Energy Group Inc. has successfully won the bid for the development rights of Block VI of the Talara Oilfield in Peru, marking a significant step in its expansion into South America. This project, which involves a 30-year hydrocarbon extraction license, will enhance the company’s market share and industry influence in the global oil and gas sector, while opening new avenues for sustainable development.

SPT Energy Group Engages in Strategic Finance Lease Agreement

SPT Energy Group Inc. announced that its subsidiary, Petrotech (Xinjiang) Engineering Co., Ltd, entered into a finance lease agreement with Zhongguancun Science-Tech. The agreement involves selling oil and gas drilling equipment for RMB14,000,000 and leasing it back for 36 months, with total lease payments amounting to RMB15,578,693. This transaction, along with previous finance lease arrangements, constitutes a discloseable transaction under Hong Kong Stock Exchange rules, indicating a strategic move to manage assets and finances effectively.

SPT Energy Group Partners with Pioneer Oil for Indonesian Oil and Gas Exploration

SPT Energy Group Inc.’s subsidiary, CNG, has entered into an Operation Cooperation Agreement with Pioneer Oil Indonesia to explore and develop oil and gas fields in the Jabung Tengah Block, Indonesia. This agreement, which involves a $200 million investment from POI, aims to leverage both companies’ resources and expertise to expedite exploration and exploitation activities, with a profit-sharing arrangement set at 50:50 if successful.

SPT Energy Group’s Subsidiary Enters Finance Lease Agreement

SPT Energy Group Inc. announced that its subsidiary, Sinopetroleum Technology Inc., has entered into a finance lease agreement involving the sale and leaseback of oil and gas drilling equipment. This transaction, valued at RMB19,523,024, is part of a series of finance lease arrangements that are considered discloseable transactions under the Hong Kong Stock Exchange’s listing rules, indicating a strategic move to optimize asset utilization and financial structuring.