Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (HK:1938)
:1938
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Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.
(1938)
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Rating:70Outperform
Price Target:
HK$0.40
▲(41.43% Upside)
Action:ReiteratedDate:01/20/26
The score is driven primarily by solid but risk-tilted financials (good cash generation and improved profitability offset by high leverage and low operating margins), supported by an extremely low P/E. Technicals add moderate support due to a clear uptrend, though overbought readings temper the outlook.
Positive Factors
Free Cash Flow Strength
Sustained positive and growing free cash flow supports the company’s ability to fund operations, service debt, and invest in capacity without relying on external financing. This underpins long-term resilience in cyclical steel and energy-related project cycles.
Negative Factors
High Financial Leverage
Elevated debt levels increase refinancing and interest-rate vulnerability, limiting strategic flexibility. In a capital-intensive commodity business, high leverage raises risk during downturns and constrains the company’s ability to invest countercyclically.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained positive and growing free cash flow supports the company’s ability to fund operations, service debt, and invest in capacity without relying on external financing. This underpins long-term resilience in cyclical steel and energy-related project cycles.
Read all positive factors
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (1938) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$364.01M
Dividend YieldN/A
Average Volume (3M)586.00K
Price to Earnings (P/E)0.3
Beta (1Y)0.59
Revenue Growth-13.26%
EPS Growth63.38%
CountryHK
Employees858
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.08
Shares Outstanding1,011,142,000
10 Day Avg. Volume300,600
30 Day Avg. Volume586,000
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.13
Price to Sales (P/S)0.05
P/FCF Ratio0.78
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 and Natural Gas Steel Pipe Holdings Limited, an investment holding company, manufactures, sells, and exports longitudinal welded steel pipes in the People's Republic of China and internationally. It operates in two segments, Ste...
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...
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| 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 | 3.75B |
| 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
Neutral
0.28
Price Trends
0.37
Negative
0.33
Positive
0.34
Positive
Market Momentum
>-0.01
Positive
43.33
Neutral
20.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1938, the sentiment is Neutral. The current price of 0.28 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.37, and below the 200-day MA of 0.34, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$698.85M | 2.53 | 6.04% | 5.81% | 16.92% | 146.69% | |
70 Outperform | HK$364.01M | 0.30 | 18.94% | ― | -13.26% | 63.38% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
48 Neutral | HK$1.17B | 9.40 | 1.06% | 2.77% | -8.90% | -79.06% | |
46 Neutral | HK$967.65M | -28.09 | -15.58% | ― | -8.38% | -86.16% | |
46 Neutral | HK$1.32B | -77.37 | -55.31% | ― | -49.95% | -310.53% | |
46 Neutral | HK$886.98M | 15.18 | 0.60% | 1.61% | -37.08% | -60.64% |
* Basic Materials Sector Average
HK:1938
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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.