Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (1938) AI Stock Analysis

• Market Cap: HK$308.40M
• Dividend Yield: N/A
• Average Volume (3M): 374.60K
• Price to Earnings (P/E): 1.1
• Beta (1Y): 0.44
• Revenue Growth: -13.26%
• EPS Growth: 63.38%
• Country: HK
• Employees: 858
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.18
• Shares Outstanding: 1,011,142,000
• 10 Day Avg. Volume: 463,600
• 30 Day Avg. Volume: 374,600
• PEG Ratio: 0.05
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 0.78
• 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

• Rating: 60 Neutral
• Price Target: HK$0.50 ▲(38.89% Upside)

The stock's overall score is driven by strong valuation metrics, indicating potential undervaluation. However, financial performance is mixed with high leverage and low margins posing risks. Technical analysis shows bearish trends, suggesting caution in the short term. The absence of earnings call and corporate events data limits further insights.

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Business Overview & Revenue Model

Company Description

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (1938) is a leading manufacturer and distributor of steel pipes, primarily serving the oil and gas industry. The company specializes in producing high-quality seamless and welded steel pipes, which are essential for the transportation of petroleum and natural gas. Operating mainly in the People's Republic of China, Chu Kong also extends its services to various sectors such as construction, infrastructure, and energy, thereby diversifying its customer base and product application.

How the Company Makes Money

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. generates revenue primarily through the sale of its steel pipes and related products. The company benefits from a diversified revenue model, which includes direct sales to large oil and gas companies, as well as contracts with construction and infrastructure firms. Significant revenue streams come from long-term contracts and project-based sales in the energy sector, particularly as demand for oil and gas continues to grow. Additionally, the company may engage in partnerships with other industry players to enhance its distribution capabilities and expand its market reach, further contributing to its earnings.

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Financial Statement Overview

Summary

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. has shown steady revenue growth and improved profitability, but high leverage and low margins are concerns. Strong cash flow generation indicates effective management despite industry challenges.

Income Statement

The company has shown a consistent revenue growth rate, with an increase from 2022 to 2024. However, gross profit margin has slightly decreased, indicating rising costs. The net profit margin improved significantly in 2024, reflecting better overall profitability. The EBIT and EBITDA margins are relatively low, suggesting challenges in operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, which could pose financial risks if not managed properly. Return on Equity (ROE) has improved over the years, indicating better utilization of shareholders' equity. The equity ratio is low, suggesting high leverage and potential financial vulnerability.

Cash Flow

The free cash flow has been positive and showed growth in recent years, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion. The company has managed its capital expenditures well, maintaining positive free cash flow despite industry challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.69B	2.94B	2.65B	2.36B	1.81B	1.14B
Gross Profit	465.53M	517.41M	554.21M	470.62M	195.52M	206.69M
EBITDA	129.04M	146.35M	175.16M	282.97M	-114.28M	-251.17M
Net Income	254.90M	212.67M	183.78M	163.03M	-94.35M	622.91M
Balance Sheet
Total Assets	6.29B	6.51B	6.42B	6.55B	7.92B	8.54B
Cash, Cash Equivalents and Short-Term Investments	44.60M	53.32M	260.71M	16.13M	638.46M	19.47M
Total Debt	1.72B	1.87B	1.83B	1.78B	1.81B	3.70B
Total Liabilities	4.84B	5.27B	5.35B	5.62B	7.10B	7.68B
Stockholders Equity	1.45B	1.24B	1.08B	930.94M	825.52M	856.70M
Cash Flow
Free Cash Flow	267.99M	205.87M	334.81M	140.76M	-973.59M	42.75M
Operating Cash Flow	245.04M	205.87M	431.07M	154.07M	-904.63M	71.36M
Investing Cash Flow	-32.96M	-55.82M	-8.68M	38.17M	2.56B	1.66B
Financing Cash Flow	-250.81M	-78.47M	-366.03M	-149.10M	-1.71B	-1.79B

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: 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 0.36 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.41, and above the 200-day MA of 0.27, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 29.54 is Positive, neither overbought nor oversold. The STOCH value of 26.48 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1203	―	€798.68M	5.02	6.32%	5.68%	16.92%	146.69%
0103	―	€2.11B	100.00	1.06%	2.19%	-8.90%	-78.99%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1938	―	HK$308.40M	1.12	19.13%	―	-13.26%	63.38%
1090	―	€1.12B	-2.51	-15.58%	―	-8.38%	-86.16%
1231	―	HK$1.08B	―	-7.12%	―	-49.95%	-310.53%
0217	―	HK$761.97M	35.14	0.80%	1.63%	-37.08%	-60.64%

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Corporate Events

Chu Kong Petroleum Approves Financial Restructuring at EGM

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. announced that all proposed ordinary resolutions were approved by shareholders at an Extraordinary General Meeting held on September 5, 2025. The key resolution involved reducing the company’s share premium account by approximately RMB767,097,000 to offset accumulated losses as of December 31, 2024. This financial restructuring aims to improve the company’s balance sheet and potentially enhance its financial stability, which could positively impact its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1938) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. stock, see the HK:1938 Stock Forecast page.

Chu Kong Petroleum Updates Share Option Scheme Details

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. has released a supplemental announcement regarding its Share Option Scheme, as detailed in its 2024 Annual Report. The company disclosed that as of the report date, 101,114,200 shares were available for issue under the scheme, representing approximately 10% of its total issued share capital. The scheme has a remaining life of approximately 5.5 years, indicating continued opportunities for stakeholder engagement and investment.

The most recent analyst rating on (HK:1938) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. stock, see the HK:1938 Stock Forecast page.

Chu Kong Petroleum Reports Increased Profit Despite Revenue Decline in 2025 Interim Results

Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd. reported its unaudited financial results for the first half of 2025, showing a decrease in revenue to RMB 1,389,183,000 from RMB 1,638,141,000 in the same period of 2024. Despite the revenue drop, the company achieved a significant increase in profit before tax, reaching RMB 175,133,000 compared to RMB 86,665,000 in the previous year, attributed to higher other income and gains, and reduced other expenses. This financial performance indicates a strategic shift in operations that may enhance the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1938) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. stock, see the HK:1938 Stock Forecast page.

Chu Kong Petroleum Schedules Board Meeting for Interim Results and Dividend Consideration

Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd. has announced an upcoming board meeting scheduled for August 29, 2025. The meeting will address the approval of the company’s unaudited interim results for the first half of 2025 and the consideration of an interim dividend, which could impact shareholder returns and market perceptions.

Chu Kong Petroleum Announces EGM to Address Share Premium Reduction

Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd. has announced an extraordinary general meeting to discuss and potentially approve a reduction in the company’s share premium account by approximately RMB767,097,000. This move aims to offset the accumulated losses as of December 31, 2024, which could improve the company’s financial standing and offer a clearer picture of its fiscal health to stakeholders.