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

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HK:1938

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.

(1938)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
HK$0.22
▼(-21.79% Downside)
Action:Reiterated
Date:07/14/26
The score is supported most by very low valuation (P/E ~0.75) and improved profitability versus earlier years. However, the overall rating is held back by weakening 2025 fundamentals (revenue decline, very thin operating margin, and weaker/volatile free cash flow) and bearish technicals (price below major moving averages with negative MACD and RSI near 40).
Positive Factors
Restored Profitability
The company moved from losses in 2021 to sustained profits through 2022–2025, establishing a recurring earnings base. This recovery improves capacity to fund operations, reinvest in the business, and service obligations, giving management a firmer platform to navigate the steel cycle.
Negative Factors
Revenue Decline
A nearly 15% revenue drop in 2025 signals weakening end-market demand or lost pricing/volume, which is structural for a cyclical steel player. Falling top line impairs scale economics, reduces pricing leverage and makes sustainable margin recovery and investment in growth harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Restored Profitability
The company moved from losses in 2021 to sustained profits through 2022–2025, establishing a recurring earnings base. This recovery improves capacity to fund operations, reinvest in the business, and service obligations, giving management a firmer platform to navigate the steel cycle.
Read all positive factors

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (1938) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company Description
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. is an investment holding company that manufactures and sells welded steel pipes. It operates through the Steel Pipes and Property Development and Investment segments. The company primarily ...

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

Summary
Financials have improved from prior stress (losses and negative cash flow in 2021) to sustained profitability through 2022–2025 and gradually improving leverage. Offsetting this, 2025 showed a notable revenue decline (~14.9%), very thin and weakening operating margin (~1.4% in 2025 vs ~2.8% in 2024), and weaker/volatile cash generation (FCF down ~54% YoY and FCF below net income), which is a key risk in a cyclical Steel business.
Income Statement
62
Positive
Balance Sheet
57
Neutral
Cash Flow
44
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.35B2.94B2.65B2.36B1.81B
Gross Profit435.53M517.41M554.21M470.62M195.52M
EBITDA109.77M146.35M175.16M282.97M-114.28M
Net Income246.31M212.67M183.78M163.03M-94.35M
Balance Sheet
Total Assets5.92B6.51B6.42B6.55B7.92B
Cash, Cash Equivalents and Short-Term Investments26.17M53.32M260.71M16.13M638.46M
Total Debt1.74B1.87B1.83B1.78B1.81B
Total Liabilities4.30B5.27B5.35B5.62B7.10B
Stockholders Equity1.50B1.24B1.08B930.94M825.52M
Cash Flow
Free Cash Flow123.20M205.87M334.81M140.76M-973.59M
Operating Cash Flow154.12M205.87M431.07M154.07M-904.63M
Investing Cash Flow-4.19M-55.82M-8.68M38.17M2.56B
Financing Cash Flow-197.65M-78.47M-366.03M-149.10M-1.71B

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

Technical Analysis Sentiment
Negative
Last Price0.28
Price Trends
50DMA
0.27
Negative
100DMA
0.31
Negative
200DMA
0.33
Negative
Market Momentum
MACD
-0.01
Positive
RSI
39.35
Neutral
STOCH
20.63
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 above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.27, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.35 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$654.79M4.3810.26%6.28%4.94%-4.32%
64
Neutral
HK$611.66M3.8111.64%7.84%-13.96%-1.91%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
HK$222.45M0.7816.71%-20.11%15.44%
44
Neutral
HK$12.96B-3.83-18.53%-13.27%4.42%
43
Neutral
HK$19.37B-3.60-11.13%-7.68%15.78%
41
Neutral
HK$37.44M-1.65-50.60%-42.37%-239.85%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1938
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.
0.22
-0.12
-35.29%
HK:0347
Angang Steel Co
1.15
-1.14
-49.78%
HK:1053
Chongqing Iron & Steel Co., Ltd. Class H
0.88
-0.89
-50.28%
HK:1118
Golik Holdings Limited
1.14
0.20
21.02%
HK:1553
Maike Tube Industry Holdings Limited
1.41
0.03
2.17%
HK:8402
GT Steel Construction Group Limited
0.08
-0.03
-29.09%

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

Chu Kong Steel Pipe Wins Strong Shareholder Backing at 2026 AGM
Jun 12, 2026
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings reported that all resolutions at its 12 June 2026 annual general meeting in Hong Kong were approved by shareholders via poll with an overwhelming majority. The meeting covered routine corporat...
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...
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.Date of analysis: Jul 14, 2026