Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (HK:1938)
:1938
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Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.
(1938)
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Rating:53Neutral
Price Target:
HK$0.31
▲(10.71% Upside)
Action:Downgraded
Date:05/01/26
The score is held back mainly by weakening fundamentals (revenue decline, very thin operating margin, and weaker/volatile free cash flow) and bearish technicals (price below key moving averages with negative MACD and low RSI/Stoch). The primary offset is a very low P/E, suggesting attractive valuation if earnings prove durable.
Positive Factors
Improving leverage & ROE
Capital structure has materially improved from extreme 2020 leverage, and a rebuilt equity base with ~16% ROE in 2025 indicates management is generating attractive returns on invested capital. This increases resilience and the firm's ability to fund operations and reinvest over the medium term.
Negative Factors
Revenue decline
A near 15% revenue drop signals durable end-market softness or loss of volume that reduces scale benefits. Lower top-line makes it harder to cover fixed costs, compresses margins, and limits reinvestment capacity, posing a structural headwind to medium-term earnings stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage & ROE
Capital structure has materially improved from extreme 2020 leverage, and a rebuilt equity base with ~16% ROE in 2025 indicates management is generating attractive returns on invested capital. This increases resilience and the firm's ability to fund operations and reinvest over the medium term.
Read all positive factors
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (1938) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$323.57M
Dividend YieldN/A
Average Volume (3M)586.00K
Price to Earnings (P/E)0.9
Beta (1Y)0.63
Revenue Growth-20.11%
EPS Growth15.44%
CountryHK
Employees858
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.24
Shares Outstanding1,011,142,000
10 Day Avg. Volume300,600
30 Day Avg. Volume586,000
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.18
Price to Sales (P/S)0.11
P/FCF Ratio2.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Business Overview & Revenue Model
Company Description
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited, an investment holding company, manufactures, sells, and exports longitudinal welded steel pipes in the People's Republic of China and internationally. It operates in two segments, Ste...
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
57
Neutral
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.35B | 2.94B | 2.65B | 2.36B | 1.81B |
| Gross Profit | 435.53M | 517.41M | 554.21M | 470.62M | 195.52M |
| EBITDA | 109.77M | 146.35M | 175.16M | 282.97M | -114.28M |
| Net Income | 246.31M | 212.67M | 183.78M | 163.03M | -94.35M |
Balance Sheet | |||||
| Total Assets | 5.92B | 6.51B | 6.42B | 6.55B | 7.92B |
| Cash, Cash Equivalents and Short-Term Investments | 26.17M | 53.32M | 260.71M | 16.13M | 638.46M |
| Total Debt | 1.74B | 1.87B | 1.83B | 1.78B | 1.81B |
| Total Liabilities | 4.30B | 5.27B | 5.35B | 5.62B | 7.10B |
| Stockholders Equity | 1.50B | 1.24B | 1.08B | 930.94M | 825.52M |
Cash Flow | |||||
| Free Cash Flow | 123.20M | 205.87M | 334.81M | 140.76M | -973.59M |
| Operating Cash Flow | 154.12M | 205.87M | 431.07M | 154.07M | -904.63M |
| Investing Cash Flow | -4.19M | -55.82M | -8.68M | 38.17M | 2.56B |
| Financing Cash Flow | -197.65M | -78.47M | -366.03M | -149.10M | -1.71B |
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Technical Analysis
Negative
0.28
Price Trends
0.34
Negative
0.34
Negative
0.35
Negative
Market Momentum
>-0.01
Negative
46.98
Neutral
27.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1938, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.34, and below the 200-day MA of 0.35, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1938.
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | HK$635.32M | 5.45 | 6.04% | 5.81% | 1.35% | -20.70% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | HK$323.57M | 0.90 | 16.63% | ― | -20.11% | 15.44% | |
51 Neutral | HK$1.32B | -41.03 | -55.31% | ― | -37.53% | -2640.00% | |
51 Neutral | HK$1.19B | 28.73 | 1.06% | 2.77% | 1.14% | 28.45% | |
49 Neutral | HK$875.07M | 4.77 | 0.60% | 1.61% | 4.77% | 23.08% | |
48 Neutral | HK$929.95M | -5.65 | -15.58% | ― | -4.81% | 91.31% |
* Basic Materials Sector Average
HK:1938
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Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Corporate Events
Chu Kong Petroleum & Natural Gas Steel Pipe Sets 2026 AGM, Seeks New Share Mandate
Apr 23, 2026
Chu Kong Petroleum Natural Gas Steel Pipe Holdings Ltd. has convened its annual general meeting for 12 June 2026 in Hong Kong to review the audited consolidated financial statements for the year ended 31 December 2025. Shareholders will also cons...
Chu Kong Petroleum & Natural Gas Steel Pipe Clarifies Independence of New Board Appointee
Apr 2, 2026
Chu Kong Petroleum Natural Gas Steel Pipe Holdings Ltd. has issued a supplemental announcement clarifying details of the appointment of Ms. Sun Dixie Hui as an independent non-executive director. She will also serve as chairman of the remuneratio...
Chu Kong Petroleum & Natural Gas Steel Pipe Revamps Board With New Independent Director
Mar 31, 2026
Chu Kong Petroleum Natural Gas Steel Pipe Holdings Ltd. announced that independent non-executive director Zhan Jian Zhou will resign from the board, and step down as chairman of the remuneration committee and member of the audit and nomination co...
Chu Kong Petroleum & Natural Gas Steel Pipe Updates Board and Committee Structure
Mar 31, 2026
Chu Kong Petroleum Natural Gas Steel Pipe Holdings Ltd. has announced the current composition of its board, which includes two executive directors led by chairman Chen Chang and three independent non-executive directors. The structure underscores...
Chu Kong Petroleum Updates Nomination Committee Mandate to Strengthen Board Governance
Mar 31, 2026
Chu Kong Petroleum Natural Gas Steel Pipe Holdings Ltd. has updated the terms of reference for its Nomination Committee, effective 1 April 2026, to refine the structure and governance of its board. The committee must comprise at least three membe...
Chu Kong Petroleum Posts Higher Earnings on Tax Credit Despite Revenue Decline
Mar 30, 2026
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited reported a drop in annual revenue to RMB2.35 billion for 2025 from RMB2.94 billion a year earlier, reflecting weaker sales. Despite lower gross profit and reduced other income, the com...
Chu Kong Petroleum & Natural Gas Steel Pipe Sets Board Meeting on 2025 Results and Dividend
Mar 18, 2026
Chu Kong Petroleum Natural Gas Steel Pipe Holdings Limited has announced that its board of directors will convene a meeting on 30 March 2026 in Guangdong Province. The agenda includes reviewing and approving the group’s annual results for t...
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.