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Petro-king Oilfield Services Ltd. (HK:2178)
:2178
Hong Kong Market

Petro-king Oilfield Services Ltd. (2178) AI Stock Analysis

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HK

Petro-king Oilfield Services Ltd.

(2178)

Rating:59Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The stock score is primarily influenced by financial performance and valuation concerns. Despite a strong technical outlook, the ongoing profitability issues and lack of dividend yield weigh heavily on the overall score. The company's financial recovery shows promise, but the negative P/E ratio highlights the need for consistent profitability.

Petro-king Oilfield Services Ltd. (2178) vs. iShares MSCI Hong Kong ETF (EWH)

Petro-king Oilfield Services Ltd. Business Overview & Revenue Model

Company DescriptionPetro-king Oilfield Services Ltd. (2178) is a leading provider of oilfield services primarily serving the oil and gas industry. The company specializes in offering a range of technical services and solutions designed to enhance the efficiency and productivity of oilfield operations. Core services include reservoir management, drilling optimization, and production enhancement, which are supported by advanced technologies and a team of experienced professionals.
How the Company Makes MoneyPetro-king Oilfield Services Ltd. generates revenue through its comprehensive suite of oilfield services. The company's primary revenue streams include fees for technical services such as reservoir management, drilling optimization, and production enhancement. These services are typically contracted by oil and gas companies looking to improve their operational efficiency and resource extraction capabilities. Additionally, Petro-king may earn revenue through partnerships and collaborations with major oil and gas firms, leveraging its expertise and technology to support large-scale projects. The company's earnings are significantly influenced by the global demand for oil and gas, as well as technological advancements that enhance service offerings.

Petro-king Oilfield Services Ltd. Financial Statement Overview

Summary
Petro-king Oilfield Services Ltd. is showing signs of financial recovery with improved margins and cash flows, yet still faces challenges with profitability and revenue growth. While leverage is managed better, the company needs to focus on driving revenue and achieving consistent profitability to ensure sustainable growth.
Income Statement
56
Neutral
The company showed an improvement in gross profit margin in the latest year at 77.0%, up from 12.3% previously, indicating better cost management. However, the net profit margin remains negative at -6.1%, showing persistent challenges in achieving profitability. Revenue declined by 7.1%, highlighting a need for growth focus. EBIT and EBITDA margins have improved but remain modest at 1.8% and 8.7% respectively.
Balance Sheet
60
Neutral
The debt-to-equity ratio improved to 0.86, reflecting a decrease in leverage. Return on equity has improved but remains negative at -10.3%, indicating ongoing profitability issues. The equity ratio stands at 26.9%, showing a reasonable level of equity financing compared to total assets.
Cash Flow
62
Positive
Free cash flow turned positive at $11.5 million, a significant improvement from a negative position, indicating better cash management. The operating cash flow to net income ratio is negative due to negative net income, but operating cash flow itself improved. Overall, cash flow performance is strengthening.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue292.44M314.84M313.77M163.97M307.99M
Gross Profit225.17M38.76M24.72M5.89M64.23M
EBITDA31.16M-20.09M17.70M-24.46M52.02M
Net Income-17.79M-73.51M-28.59M-105.28M-73.03M
Balance Sheet
Total Assets642.94M712.01M823.41M716.49M1.02B
Cash, Cash Equivalents and Short-Term Investments15.61M26.29M39.96M27.45M32.81M
Total Debt148.65M189.95M231.15M187.15M351.38M
Total Liabilities462.68M520.86M561.68M425.81M664.27M
Stockholders Equity172.82M186.83M256.05M286.01M331.90M
Cash Flow
Free Cash Flow11.51M-29.58M19.11M119.80M-32.56M
Operating Cash Flow19.21M-28.71M22.88M125.43M-8.90M
Investing Cash Flow15.51M43.60M22.45M-11.11M22.13M
Financing Cash Flow-42.74M-29.49M-28.51M-121.34M-16.24M

Petro-king Oilfield Services Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.07
Price Trends
50DMA
0.06
Positive
100DMA
0.06
Positive
200DMA
0.06
Positive
Market Momentum
MACD
<0.01
Positive
RSI
49.92
Neutral
STOCH
23.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2178, the sentiment is Neutral. The current price of 0.07 is equal to the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 23.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2178.

Petro-king Oilfield Services Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$4.11B15.127.26%1.91%5.43%20.64%
68
Neutral
HK$486.25M9.005.34%-63.59%22.85%
59
Neutral
HK$124.32M-9.89%-6.39%75.82%
59
Neutral
HK$191.70M6.24
7.69%-81.72%
57
Neutral
HK$84.12B3.55-2.08%5.24%-4.66%-42.32%
53
Neutral
$4.77B-45.09%30.81%2.97%
46
Neutral
€139.48M-9.22%-5.75%57.80%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2178
Petro-king Oilfield Services Ltd.
0.07
0.00
0.00%
HK:0353
Energy International Investments Holdings Ltd
0.44
-0.36
-45.00%
HK:1623
Hilong Holding Ltd.
0.11
0.00
0.00%
HK:0568
Shandong Molong Petroleum Machinery
4.31
3.39
368.48%
HK:3337
Anton Oilfield Services Group
1.38
0.91
195.50%
HK:1080
Shengli Oil & Gas Pipe Holdings Ltd.
0.04
>-0.01
-7.69%

Petro-king Oilfield Services Ltd. Corporate Events

Petro-king Oilfield Services Secures Shareholder Approval for Strategic Agreement
Jun 12, 2025

Petro-king Oilfield Services Ltd. announced the successful passing of a resolution at their Extraordinary General Meeting held on June 12, 2025. The resolution, which pertained to the approval of a Framework Sale and Purchase Agreement, was passed with significant shareholder support, indicating a positive step for the company’s strategic transactions. The approval may enhance the company’s operational capabilities and market positioning, potentially benefiting stakeholders through improved business prospects.

Petro-king Oilfield Services Schedules EGM to Approve Strategic Agreement
May 27, 2025

Petro-king Oilfield Services Ltd. has announced an extraordinary general meeting (EGM) scheduled for June 12, 2025, in Hong Kong, where shareholders will consider approving a Framework Sale and Purchase Agreement. This agreement involves multiple subsidiaries and aims to enhance the company’s operational capabilities and strategic positioning in the oilfield services market.

Petro-king Oilfield Services Schedules Extraordinary General Meeting
May 26, 2025

Petro-king Oilfield Services Ltd. has announced the scheduling of an extraordinary general meeting (EGM) to be held on June 12, 2025, in Hong Kong. The meeting aims to discuss the Framework Sale and Purchase Agreement, with the register of members closed from June 9 to June 12, 2025, to determine voting eligibility. This announcement is significant for shareholders as it outlines the procedures for participating in the EGM, which could impact the company’s strategic decisions and future operations.

Petro-king Enters Strategic Agreement with Petro-king Energy Group
May 8, 2025

Petro-king Oilfield Services Ltd. has entered into a Framework Sale and Purchase Agreement with Petro-king Energy Group, effective retrospectively from January 1, 2025, to December 31, 2027. Under this agreement, Petro-king’s PRC Subsidiaries will purchase well completion, production enhancement, and drilling products from Petro-king Energy Group, with annual transaction caps set at RMB20,000,000. This agreement, involving connected persons under the Listing Rules, requires compliance with reporting and approval processes due to its financial scale, impacting the company’s operational strategy and regulatory obligations.

Petro-king Oilfield Services Ltd. Announces Successful AGM Resolutions
May 8, 2025

Petro-king Oilfield Services Ltd. announced that all resolutions proposed at their Annual General Meeting on May 8, 2025, were passed by shareholders. These resolutions included the re-election of directors, authorization of director remuneration, reappointment of the auditor, and granting of general mandates for share issuance and repurchase. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued operational stability and strategic flexibility.

Petro-king Oilfield Services Approves New Share Option Scheme
May 8, 2025

Petro-king Oilfield Services Ltd. announced the successful passing of a resolution at their Extraordinary General Meeting (EGM) held on May 8, 2025. The resolution, which involved the adoption of a New Share Option Scheme, was approved by a significant majority of shareholders, with 92.89% voting in favor. This development is expected to impact the company’s operational strategies and potentially enhance shareholder value by aligning the interests of the company’s management with those of its shareholders.

Petro-King Oilfield Services to Discuss New Share Option Scheme at Extraordinary General Meeting
Apr 15, 2025

Petro-King Oilfield Services Limited has announced an extraordinary general meeting scheduled for May 8, 2025, to discuss and potentially approve a new share option scheme. This scheme would allow the company to issue new shares up to 10% of the current shares in issue, excluding treasury shares, which could impact the company’s capital structure and provide flexibility in rewarding employees or raising capital.

Petro-king Oilfield Services Ltd. Announces AGM and Key Resolutions
Apr 15, 2025

Petro-king Oilfield Services Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for May 8, 2025, in Hong Kong. The meeting will address several key resolutions, including the re-election of directors, the authorization of director remuneration, and the re-appointment of BDO Limited as the company’s auditor. Additionally, the AGM will consider a resolution to empower the company’s directors to issue additional shares, subject to certain conditions. This move could potentially impact the company’s capital structure and shareholder value, reflecting its strategic positioning and operational plans.

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: Jun 25, 2025