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

• Market Cap: HK$89.79M
• Dividend Yield: N/A
• Average Volume (3M): 666.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -36.59%
• EPS Growth: 48.63%
• Country: HK
• Employees: 195
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,726,674,700
• 10 Day Avg. Volume: 441,100
• 30 Day Avg. Volume: 666,290
• PEG Ratio: 0.07
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 8.70
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by weak financial performance and poor technical indicators. Despite some financial recovery, the company struggles with profitability and revenue growth. Technical analysis shows a bearish trend, and valuation metrics are unattractive due to negative earnings. The absence of earnings call insights and corporate events further limits positive influences on the score.

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

Company Description

Petro-king Oilfield Services Ltd. (2178) is a leading provider of comprehensive oilfield services, specializing in drilling, well completion, and maintenance solutions for the oil and gas industry. The company operates primarily in the upstream sector, offering a wide range of services that support exploration and production activities. With a focus on technological innovation and operational efficiency, Petro-king aims to enhance the productivity and sustainability of oilfield operations across various regions.

How the Company Makes Money

Petro-king Oilfield Services Ltd. generates revenue through multiple streams, primarily by providing specialized oilfield services to exploration and production companies. Key revenue sources include drilling services, well completion operations, and ongoing maintenance contracts. The company often engages in long-term contracts with major oil and gas firms, ensuring a steady flow of income. Additionally, Petro-king may benefit from strategic partnerships with technology providers, allowing it to offer advanced solutions that cater to the evolving needs of the industry, thus enhancing its competitive edge and revenue potential.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	240.08M	292.44M	314.84M	313.77M	163.97M	307.99M
Gross Profit	119.18M	225.17M	38.76M	24.72M	5.89M	64.23M
EBITDA	7.79M	31.16M	-20.09M	17.70M	-36.66M	52.02M
Net Income	-29.19M	-17.79M	-73.51M	-28.59M	-105.28M	-73.03M
Balance Sheet
Total Assets	601.01M	642.94M	712.01M	823.41M	716.49M	1.02B
Cash, Cash Equivalents and Short-Term Investments	35.40M	15.61M	48.17M	39.96M	49.97M	29.55M
Total Debt	152.51M	148.65M	189.95M	231.15M	187.15M	351.38M
Total Liabilities	429.21M	462.68M	520.86M	561.68M	425.81M	664.27M
Stockholders Equity	164.09M	172.82M	186.83M	256.05M	286.01M	331.90M
Cash Flow
Free Cash Flow	43.71M	11.51M	-29.58M	19.11M	119.80M	-32.56M
Operating Cash Flow	48.51M	19.21M	-28.71M	22.88M	125.43M	-8.90M
Investing Cash Flow	914.00K	15.51M	43.60M	27.22M	-29.07M	23.93M
Financing Cash Flow	-38.27M	-42.74M	-29.49M	-28.51M	-98.86M	-16.24M

Petro-king Oilfield Services Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2178, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.06 is Neutral, neither overbought nor oversold. The STOCH value of 17.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2178.

Petro-king Oilfield Services Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0353	68 Neutral	HK$356.59M	1.39	22.57%	―	-37.38%	337.64%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
3337	65 Neutral	$3.08B	9.15	8.78%	2.65%	10.16%	49.48%
1623	51 Neutral	€339.29M	-0.92	-11.09%	―	-2.11%	-779.00%
1080	49 Neutral	€348.69M	-7.50	-10.68%	―	0.97%	33.70%
2178	46 Neutral	HK$89.79M	-3.08	-16.54%	―	-36.59%	48.63%
0568	40 Neutral	HK$5.31B	―	-20.65%	―	17.21%	59.09%

Petro-king Oilfield Services Ltd. Corporate Events

Petro-king Reports Revenue Decline Amid Project Delays and Contract Expirations

Petro-king Oilfield Services Ltd. reported a significant decline in revenue for the first half of 2025, with a 32.9% decrease compared to the same period in 2024. This decline was primarily due to postponed production enhancement projects in Southwestern China and the expiration of a supervisory service contract in the Middle East. Consequently, the company experienced a substantial increase in net loss, prompting the decision not to distribute an interim dividend. The revenue drop was notably severe in overseas markets, with an 86.7% decrease, while the China market saw a 26.4% decline.

Petro-king Oilfield Services Issues Profit Warning Amid Revenue Decline

Petro-king Oilfield Services Ltd. has issued a profit warning, expecting a significant increase in losses for the first half of 2025 compared to the previous year. The anticipated loss of up to HK$15.0 million is attributed to a decrease in revenue from postponed production enhancement services in China and the expiration of a service contract in the Middle East, impacting the company’s financial performance.

Petro-king Oilfield Services Ltd. Schedules Board Meeting for Interim Results

Petro-king Oilfield Services Ltd. has announced a board meeting scheduled for August 21, 2025, to discuss and approve the publication of the company’s unaudited interim results for the first half of 2025 and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.