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Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.
(1938)
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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)
Market Cap
HK$222.45M
Dividend YieldN/A
Average Volume (3M)586.00K
Price to Earnings (P/E)0.8
Beta (1Y)0.71
Revenue Growth-20.11%
EPS Growth15.44%
CountryHK
Employees846
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 Ratio0.08
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 & 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
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
0.27
Negative
0.31
Negative
0.33
Negative
Market Momentum
-0.01
Positive
39.35
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$654.79M | 4.38 | 10.26% | 6.28% | 4.94% | -4.32% | |
64 Neutral | HK$611.66M | 3.81 | 11.64% | 7.84% | -13.96% | -1.91% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | HK$222.45M | 0.78 | 16.71% | ― | -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
HK:1938
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.
0.22
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-35.29%
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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.