Shengli Oil & Gas Pipe Holdings Ltd. (1080) AI Stock Analysis

• Market Cap: €344.82M
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 0.97%
• EPS Growth: 33.70%
• Country: HK
• Employees: 461
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): >-0.01
• Shares Outstanding: 3,874,365,500
• 10 Day Avg. Volume: 1,509,770
• 30 Day Avg. Volume: 2,061,206
• PEG Ratio: 0.05
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 8.60
• 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

• Rating: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 49 reflects significant financial challenges, including declining revenues and persistent losses, which are the most impactful factors. Technical analysis shows neutral indicators, offering some stability but no strong positive signals. Valuation is weak due to negative earnings and lack of dividends, further weighing down the score.

Shengli Oil & Gas Pipe Holdings Ltd. Business Overview & Revenue Model

Company Description

Shengli Oil & Gas Pipe Holdings Ltd. is a leading manufacturer and supplier of pipes and related products for the oil and gas industry. The company operates primarily in the sectors of energy and infrastructure, focusing on the production of high-quality steel pipes and pipe fittings that are essential for oil and gas exploration, production, and transportation. Shengli Oil & Gas Pipe Holdings Ltd. serves a global market, catering to the needs of various clients in both the upstream and downstream segments of the oil and gas industry.

How the Company Makes Money

The company generates revenue primarily through the manufacturing and sale of steel pipes and related products, which are essential for the oil and gas sector. Key revenue streams include the sale of seamless and welded pipes, as well as pipe fittings and accessories. Shengli Oil & Gas Pipe Holdings Ltd. benefits from long-term contracts and relationships with major oil and gas companies and contractors, providing a stable source of income. Additionally, the company may engage in partnerships or joint ventures to expand its market reach and enhance its product offerings, which can contribute to its overall earnings. Fluctuations in oil prices and demand for energy can also significantly impact its revenue, as these factors influence the investment levels in exploration and production activities by its clients.

Shengli Oil & Gas Pipe Holdings Ltd. Financial Statement Overview

Summary

Shengli Oil & Gas Pipe Holdings Ltd. faces significant financial challenges, marked by declining revenues, persistent losses, and unstable cash flows. The balance sheet reflects increasing financial leverage and reduced equity, raising concerns about financial stability. These issues highlight the need for strategic changes to improve profitability and strengthen the company's financial health.

Income Statement

The company has consistently reported declining revenues over the years with a recent slight uptick in gross profit margin from 2023 to 2024. However, it continues to suffer from negative EBIT and net income, indicating ongoing operational challenges and inability to cover operating expenses with revenue.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio and declining stockholders' equity, reflecting a weakening financial position. The equity ratio has been decreasing, indicating increased reliance on liabilities over equity. Despite these weaknesses, the company maintains a reasonable level of cash and short-term investments.

Cash Flow

The company experienced significant fluctuations in free cash flow, with negative free cash flow in recent years, indicating potential liquidity issues. The operating cash flow has also been inconsistent, aligning with the challenges in maintaining positive net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	570.07M	591.88M	1.05B	1.53B	856.43M
Gross Profit	59.14M	33.46M	101.98M	135.82M	44.23M
EBITDA	-32.68M	-76.44M	-24.30M	-131.42M	-232.40M
Net Income	-42.56M	-98.41M	-33.00M	-260.72M	-325.39M
Balance Sheet
Total Assets	1.06B	1.08B	1.16B	1.92B	2.24B
Cash, Cash Equivalents and Short-Term Investments	127.72M	150.51M	176.27M	151.77M	129.97M
Total Debt	310.88M	331.53M	324.07M	692.19M	782.75M
Total Liabilities	637.17M	580.15M	553.81M	1.29B	1.38B
Stockholders Equity	418.18M	495.20M	593.54M	626.43M	841.60M
Cash Flow
Free Cash Flow	13.11M	-34.71M	39.90M	-5.77M	92.05M
Operating Cash Flow	16.24M	-26.70M	54.94M	38.44M	120.01M
Investing Cash Flow	9.00M	12.03M	-151.42M	57.39M	-66.06M
Financing Cash Flow	-34.84M	-6.79M	121.09M	-74.98M	-40.33M

Shengli Oil & Gas Pipe Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1080, the sentiment is Neutral. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1080.

Shengli Oil & Gas Pipe Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0353	68 Neutral	HK$356.59M	1.37	22.57%	―	-37.38%	337.64%
0206	67 Neutral	HK$902.22M	16.18	3.95%	3.70%	-8.93%	-25.43%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1623	60 Neutral	€410.54M	8.67	-11.09%	―	-2.11%	-779.00%
2178	54 Neutral	HK$105.33M	―	-16.54%	―	-36.59%	48.63%
1080	49 Neutral	€344.82M	―	-10.68%	―	0.97%	33.70%
1921	48 Neutral	HK$9.77B	―	-1.68%	0.62%	4.66%	-432.65%

Shengli Oil & Gas Pipe Holdings Ltd. Corporate Events

Shengli Oil & Gas Pipe Holdings Ltd. Reassesses Disposal Strategy After Unsuccessful Tender

Shengli Oil & Gas Pipe Holdings Ltd. announced that no potential bidders were identified by the expiration of the public tender period for the potential disposal of equity interest in a target company. As a result, the company will reassess its strategy for the disposal and will provide further updates as necessary. This development may impact the company’s operational strategy and could influence investor decisions.

Shengli Oil & Gas Pipe Holdings Updates on Connected Transactions in 2024 Annual Report

Shengli Oil & Gas Pipe Holdings Ltd. has issued a supplemental announcement regarding its 2024 Annual Report, specifically addressing connected transactions. The company received financial assistance from related parties, including a current director, which was conducted on normal commercial terms and is exempt from certain reporting requirements under the Listing Rules. The announcement confirms compliance with disclosure requirements and states that no other connected transactions need to be disclosed.

Shengli Oil & Gas Pipe Holdings Initiates Public Tender for Equity Disposal

Shengli Oil & Gas Pipe Holdings Ltd. has announced the commencement of a public tender process for the potential disposal of its 98% equity interest in a target company. The tender will be conducted through the Southern United Assets and Equity Exchange, with a minimum bidding price set at RMB29.50 million. The financial impact of this disposal will depend on the final bidding price, and if successful, it may result in a gain on disposal and a decrease in fair value of equity investment. This transaction could be significant for the company, potentially constituting a discloseable transaction under the Listing Rules.

Shengli Oil & Gas Pipe Holdings Reports Revenue Growth Amid Continued Losses

Shengli Oil & Gas Pipe Holdings Ltd. reported an increase in revenue by 12.4% to approximately RMB374,825,000 for the first half of 2025 compared to the same period in 2024. Despite the rise in revenue and a slight improvement in gross profit margin, the company still faced a loss attributable to its owners amounting to approximately RMB24,146,000. The comprehensive loss for the period was reduced from the previous year, yet no interim dividend was declared, indicating ongoing financial challenges.

Shengli Oil & Gas Pipe Holdings Clarifies Misleading Media Reports

Shengli Oil & Gas Pipe Holdings Ltd. issued a clarification announcement regarding a recent media article that inaccurately reported a potential collaboration with a financial platform. The company clarified that while a representative from the financial platform visited one of its subsidiary’s factories, no discussions about collaboration took place, and there are no current plans to engage in such an arrangement. The announcement emphasizes the importance of relying on official company statements for accurate information and advises caution to shareholders and potential investors regarding market rumors.

Shengli Oil & Gas Pipe Warns of Increased Loss Amid Litigation Costs

Shengli Oil & Gas Pipe Holdings Ltd. has issued a profit warning, indicating an expected loss for the first half of 2025. Despite an increase in production, sales volumes, and gross profit from national pipeline projects, the company anticipates a slight increase in loss due to a one-off litigation provision. However, the total comprehensive loss is expected to decrease compared to the previous year due to favorable changes in the fair value of an unlisted equity investment.

Shengli Oil & Gas Pipe Holdings Announces Potential Disposal of Subsidiary

Shengli Oil & Gas Pipe Holdings Ltd. has announced its intention to dispose of its 98% equity interest in Zhejiang Shengguan Industrial Co., Ltd., a subsidiary with no business operations but holding a significant stake in Xinfeng Energy Enterprise Group Co., Ltd. The disposal will be conducted through a public tender process, with a minimum bidding price set at RMB29.50 million. The financial impact of this disposal on Shengli will depend on the final bidding price, but it is expected to result in a gain on disposal of approximately RMB14,000 and a decrease in fair value of the equity investment by RMB14,272,000.

Shengli Oil & Gas Pipe Holdings to Review Interim Results and Dividend

Shengli Oil & Gas Pipe Holdings Ltd. has announced an upcoming board meeting scheduled for August 25, 2025. The meeting will focus on reviewing and approving the unaudited interim results for the first half of 2025 and discussing the potential declaration and payment of an interim dividend. This announcement is significant as it could impact the company’s financial performance and shareholder returns.

Shengli Oil & Gas Pipe Holdings Faces Legal Challenges in Subsidiary Litigation

Shengli Oil & Gas Pipe Holdings Ltd. announced a litigation involving its subsidiaries, Zhejiang Shengguan Industrial Co., Ltd. and Shandong Shengli Steel Pipe Co., Ltd., related to an arbitration judgment. The judgment required Xinfeng Energy Enterprise Group Co., Ltd. to pay Gansu Keyao Electric Power Co., Ltd. a sum of RMB17,195,839.93, which was not paid on time, leading to further legal actions. The court ruled that Hangzhou Hanyue New Energy Co., Ltd. and Zhejiang Shengguan are liable for supplementary compensation, with Zhejiang Shengguan’s appeal against this judgment being dismissed. This litigation highlights potential financial liabilities for Shengli’s subsidiaries and underscores the complex legal challenges the company faces in its operations.