tiprankstipranks
Trending News
More News >
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (HK:1938)
:1938
Hong Kong Market
Advertisement

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

Compare
0 Followers

Top Page

HK:1938

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.

(1938)

Rating:72Outperform
Price Target:
HK$0.50
▲(61.29%Upside)
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. benefits from a strong valuation score due to its low P/E ratio, suggesting it is undervalued. Financial performance is stable but impacted by high leverage. Technical analysis indicates positive momentum, supporting a favorable outlook.

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 DescriptionChu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (1938) is a leading manufacturer and supplier in the steel pipe industry, specializing in producing large-diameter welded steel pipes primarily used in the oil, natural gas, and construction sectors. The company operates internationally, providing high-quality steel piping solutions that support infrastructure and energy projects worldwide.
How the Company Makes MoneyChu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. generates revenue primarily through the manufacture and sale of welded steel pipes. These pipes are essential components in the transportation of oil and natural gas, as well as in various construction projects. The company leverages its manufacturing capabilities to produce high-quality, durable products that meet international standards, thus catering to a global clientele. Key revenue streams include direct sales to energy companies, construction firms, and government infrastructure projects. Additionally, the company may engage in strategic partnerships or joint ventures to expand its market reach and enhance its production capacity, 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 demonstrated steady revenue growth and improved profitability in recent years. However, high leverage and low margins remain concerns. The company's strong cash flow generation showcases its ability to manage operations effectively despite industry challenges.
Income Statement
67
Positive
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
58
Neutral
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
72
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.94B2.65B2.36B1.81B1.14B
Gross Profit517.41M554.21M470.62M195.52M206.69M
EBITDA146.35M175.16M282.97M-95.81M-99.08M
Net Income212.67M183.78M163.03M-94.35M622.91M
Balance Sheet
Total Assets6.51B6.42B6.55B7.92B8.54B
Cash, Cash Equivalents and Short-Term Investments53.32M260.71M16.13M20.59M19.47M
Total Debt1.87B1.83B1.78B1.81B3.70B
Total Liabilities5.27B5.35B5.62B7.10B7.68B
Stockholders Equity1.24B1.08B930.94M825.52M856.70M
Cash Flow
Free Cash Flow205.87M334.81M140.76M-973.59M42.75M
Operating Cash Flow205.87M431.07M154.07M-904.63M71.36M
Investing Cash Flow-55.82M-8.68M38.17M2.56B1.66B
Financing Cash Flow-78.47M-366.03M-149.10M-1.71B-1.79B

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

Technical Analysis Sentiment
Positive
Last Price0.31
Price Trends
50DMA
0.24
Positive
100DMA
0.22
Positive
200DMA
0.20
Positive
Market Momentum
MACD
0.03
Positive
RSI
57.06
Neutral
STOCH
25.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1938, the sentiment is Positive. The current price of 0.31 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.24, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 25.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1938.

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€844.06M6.005.38%3.76%15.34%113.64%
72
Outperform
HK$303.34M1.3218.42%8.99%11.60%
67
Neutral
HK$1.44B34.841.79%2.85%-3.91%-46.06%
64
Neutral
€1.40B36.151.36%0.85%-25.32%-42.98%
59
Neutral
HK$16.65B4.27-5.31%4.61%-3.83%-62.19%
55
Neutral
€980.22M-15.03%-9.84%-90.32%
53
Neutral
HK$904.00M131.58-0.96%-41.26%-110.87%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1938
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.
0.32
0.15
88.24%
HK:1231
Newton Resources Ltd.
0.23
-0.08
-25.90%
HK:0103
Shougang Concord Century Holding Ltd.
0.54
0.30
127.85%
HK:1090
Da Ming International Holdings Limited
0.78
-0.08
-9.30%
HK:1203
GDH Guangnan (Holdings) Limited
0.91
0.35
61.92%
HK:0217
China Chengtong Development Group Limited
0.24
0.16
197.47%

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

Chu Kong Petroleum Proposes Share Premium Reduction to Offset Losses
Jul 29, 2025

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. has announced a proposed share premium reduction to offset its accumulated losses, amounting to approximately RMB 767,097,000. This financial maneuver aims to improve the company’s financial position and provide a clearer picture of its business operations to shareholders and investors. The reduction does not affect the company’s share capital or trading arrangements and is contingent upon shareholder approval and compliance with legal requirements.

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. AGM Resolutions Unanimously Passed
Jun 20, 2025

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. announced that all resolutions proposed at its Annual General Meeting held on June 20, 2025, were unanimously passed by shareholders. The resolutions included re-electing directors, authorizing the board to fix remuneration, re-appointing auditors, and granting mandates for share issuance and repurchase, indicating strong shareholder support and strategic flexibility for the company.

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 31, 2025