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

• Market Cap: HK$190.09M
• Dividend Yield: N/A
• Average Volume (3M): 215.17K
• Price to Earnings (P/E): 0.8
• Beta (1Y): 0.26
• Revenue Growth: 8.99%
• EPS Growth: 11.60%
• Country: HK
• Employees: 858
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Steel
• EPS (TTM): 0.09
• Shares Outstanding: 1,011,142,000
• 10 Day Avg. Volume: 440,300
• 30 Day Avg. Volume: 215,166
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.81
• 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: 66 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The company's strong valuation highlights a potentially undervalued stock, offsetting concerns from financial performance due to high leverage and low margins. Technical indicators suggest stability with potential for upward movement, contributing to a moderately favorable overall score.

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 prominent manufacturer in the steel pipe industry, specializing in the production of longitudinal submerged arc welded (LSAW) steel pipes. These steel pipes are primarily utilized in the energy sector for oil and gas transportation, as well as in other industrial applications. The company primarily serves the markets in China and internationally, leveraging its advanced production facilities and technological expertise to deliver high-quality steel pipe solutions.

How the Company Makes Money

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. generates revenue through the manufacture and sale of steel pipes, primarily to the oil and gas industry. Its key revenue streams include the production of LSAW steel pipes, which are crucial for energy infrastructure projects such as pipelines for oil and gas transportation. The company benefits from strategic partnerships and contracts with energy companies and infrastructure developers, which ensure a steady demand for its products. Additionally, the company may engage in long-term supply agreements and collaborations that enhance its market position and revenue stability. Factors such as global energy demand, infrastructure development, and technological advancements in steel pipe manufacturing significantly influence 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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.94B	2.65B	2.36B	1.81B	1.14B
	Gross Profit
517.41M	554.21M	470.62M	195.52M	206.69M
	EBIT
52.52M	107.20M	273.62M	-173.95M	-227.41M
	EBITDA
146.35M	175.16M	282.97M	-95.81M	-99.08M
	Net Income Common Stockholders
212.67M	183.78M	163.03M	-94.35M	622.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.32M	260.71M	16.13M	20.59M	19.47M
	Total Assets
6.51B	6.42B	6.55B	7.92B	8.54B
	Total Debt
1.87B	1.83B	1.78B	1.81B	3.70B
	Net Debt
1.82B	1.80B	1.76B	1.79B	3.68B
	Total Liabilities
5.27B	5.35B	5.62B	7.10B	7.68B
	Stockholders Equity
1.24B	1.08B	930.94M	825.52M	856.70M
Cash Flow		Free Cash Flow
205.87M	334.81M	140.76M	-973.59M	42.75M
	Operating Cash Flow
205.87M	431.07M	154.07M	-904.63M	71.36M
	Investing Cash Flow
-55.82M	-8.68M	38.17M	2.56B	1.66B
	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 Price: 0.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.19 is above the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.19, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 57.39 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1339	85 Outperform	$379.46B	5.51	17.85%	2.21%	4.62%	81.63%
1088	80 Outperform	HK$824.54B	10.97	12.78%	7.25%	-7.73%	-6.97%
3899	75 Outperform	$12.92B	10.85	9.63%	4.71%	2.96%	-4.32%
1618	75 Outperform	€61.91B	5.34	5.56%	5.73%	-19.10%	-30.15%
2333	70 Neutral	$178.28B	8.41	14.58%	2.56%	5.32%	10.61%
1938	66 Neutral	HK$190.09M	0.82	18.42%	―	8.99%	11.60%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

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

Chu Kong Petroleum Announces 2025 AGM Agenda

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. has announced its upcoming annual general meeting scheduled for June 20, 2025, in Hong Kong. Key agenda items include the review of the company’s financial statements, re-election of directors, and re-appointment of auditors. Additionally, shareholders will consider a resolution to authorize the board to issue shares, which could impact the company’s capital structure and shareholder value.

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Announces 2024 Financial Results

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. reported its annual financial results for the year ended December 31, 2024, showing a revenue increase to RMB 2,939,876,000 from RMB 2,650,852,000 in 2023. Despite a decrease in gross profit and increased finance costs, the company achieved a profit before tax of RMB 166,509,000, significantly higher than the previous year’s RMB 39,079,000, attributed to other income gains and an income tax credit.