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

• Market Cap: HK$267.95M
• Dividend Yield: N/A
• Average Volume (3M): 586.00K
• Price to Earnings (P/E): 1.0
• Beta (1Y): 0.55
• Revenue Growth: -13.26%
• EPS Growth: 63.38%
• Country: HK
• Employees: 858
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.18
• Shares Outstanding: 1,011,142,000
• 10 Day Avg. Volume: 300,600
• 30 Day Avg. Volume: 586,000
• PEG Ratio: 0.05
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 0.78
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

The stock's overall score is primarily influenced by its strong valuation, indicating it may be undervalued. However, technical indicators suggest bearish momentum, and financial performance highlights concerns over high leverage and low margins. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Model Diversification

Diversified revenue streams from multiple sectors reduce dependency on a single market, enhancing stability and growth potential.

Cash Flow Generation

Strong cash generation supports operational needs and strategic investments, indicating effective financial management.

Improved Profitability

Improved profitability reflects efficient cost management and enhanced operational performance, boosting long-term financial health.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Low Margins

Low operational margins suggest challenges in cost control and efficiency, which may hinder profitability in competitive markets.

Revenue Decline

A decline in revenue growth indicates potential market challenges or competitive pressures, affecting future earnings potential.

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, Steel Pipes, and Property Development and Investment. The company offers longitudinal and spiral submerged arc-welded steel pipes. It also trades in steel pipes; manufactures and sells petrol fittings, oil country tubular goods, steel pipe and metallurgy equipment, and screw-thread steels; and provides steel pipe casing and lining, and port services. In addition, the company is involved in the property investment, development, and management activities; provision of manufacturing services for processing raw materials into steel pipes; trading of steel plates; and sale of steel fittings and scrap materials. Its steel pipes are primarily used for energy transmission, including oil and gas transmission pipelines, deep sea pipelines, city gas networks, and petrochemicals, as well as mining, infrastructure construction, offshore engineering, steel structure, and water utilities industries. The company was founded in 1993 and is headquartered in Kowloon Bay, Hong Kong. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited is a subsidiary of Bournam Profits Limited.

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 companies, as well as contracts with construction and infrastructure firms. Significant revenue streams come from long-term contracts and project-based sales in the energy sector, particularly as demand for oil and gas continues to grow. Additionally, the company may engage in partnerships with other industry players to enhance its distribution capabilities and expand its market reach, further 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 shown steady revenue growth and improved profitability. However, high leverage and low margins are concerns. Strong cash flow generation indicates effective management, but reducing debt and improving operational efficiency are crucial for future stability.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.30, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 26.52 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1203	71 Outperform	HK$735.15M	4.62	6.32%	5.81%	16.92%	146.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1938	61 Neutral	HK$267.95M	0.98	19.13%	―	-13.26%	63.38%
0103	51 Neutral	HK$1.61B	76.14	1.06%	2.77%	-8.90%	-79.06%
1090	49 Neutral	HK$1.08B	-2.42	-15.58%	―	-8.38%	-86.16%
0217	47 Neutral	HK$738.16M	33.51	0.80%	1.61%	-37.08%	-60.64%
1231	46 Neutral	HK$1.36B	-85.00	-7.12%	―	-49.95%	-310.53%