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Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.
(1938)
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Rating:62Neutral
Price Target:
HK$0.24
▼(-14.29% Downside)
Action:Reiterated
Date:08/22/26
The score is supported by very low valuation (P/E ~1.02) and a generally constructive technical trend with positive MACD. Offsetting this is middling financial quality for a cyclical Steel business—2025 revenue contraction, very thin operating margin, and notably weaker/free-cash-flow volatility—plus elevated RSI signaling higher near-term technical risk.
Positive Factors
Profitability Recovery
The company has moved from a 2021 loss to sustained profitability through 2025, while net margin improved meaningfully. This recovery indicates stronger earnings capacity than in the earlier period and provides a more durable base for operations and capital allocation.
Negative Factors
Revenue Contraction
The return to revenue contraction after two years of growth signals weakening demand or cyclical pressure in the company’s markets. Sustained top-line softness could reduce operating leverage, constrain reinvestment, and make future earnings more dependent on cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
The company has moved from a 2021 loss to sustained profitability through 2025, while net margin improved meaningfully. This recovery indicates stronger earnings capacity than in the earlier period and provides a more durable base for operations and capital allocation.
Read all positive factors
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (1938) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$228.52M
Dividend Yield2.39%
Average Volume (3M)115.60K
Price to Earnings (P/E)1.6
Beta (1Y)0.83
Revenue Growth-39.70%
EPS Growth-51.97%
CountryHK
Employees824
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.24
Shares Outstanding1,011,142,000
10 Day Avg. Volume111,600
30 Day Avg. Volume115,600
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.18
Price to Sales (P/S)0.11
P/FCF Ratio2.14
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 & Natural Gas Steel Pipe Holdings Ltd. is an investment holding company that manufactures and sells welded steel pipes. It operates through the Steel Pipes and Property Development and Investment segments. The company primarily ...
How the Company Makes Money
Specific, verifiable information about the company’s revenue model, key revenue streams, and earnings drivers is not available from the information provided in this chat. null...
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
57
Neutral
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.35B | 2.94B | 2.65B | 2.36B | 1.81B |
| Gross Profit | 435.53M | 517.41M | 554.21M | 470.62M | 195.52M |
| EBITDA | 109.77M | 146.35M | 175.16M | 282.97M | -114.28M |
| Net Income | 246.31M | 212.67M | 183.78M | 163.03M | -94.35M |
Balance Sheet | |||||
| Total Assets | 5.92B | 6.51B | 6.42B | 6.55B | 7.92B |
| Cash, Cash Equivalents and Short-Term Investments | 26.17M | 53.32M | 260.71M | 16.13M | 638.46M |
| Total Debt | 1.74B | 1.87B | 1.83B | 1.78B | 1.81B |
| Total Liabilities | 4.30B | 5.27B | 5.35B | 5.62B | 7.10B |
| Stockholders Equity | 1.50B | 1.24B | 1.08B | 930.94M | 825.52M |
Cash Flow | |||||
| Free Cash Flow | 123.20M | 205.87M | 334.81M | 140.76M | -973.59M |
| Operating Cash Flow | 154.12M | 205.87M | 431.07M | 154.07M | -904.63M |
| Investing Cash Flow | -4.19M | -55.82M | -8.68M | 38.17M | 2.56B |
| Financing Cash Flow | -197.65M | -78.47M | -366.03M | -149.10M | -1.71B |
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Technical Analysis
Negative
0.28
Price Trends
0.23
Negative
0.26
Negative
0.30
Negative
Market Momentum
>-0.01
Positive
45.35
Neutral
6.04
Positive
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 0.25, above the 50-day MA of 0.23, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 6.04 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$689.25M | 4.62 | 9.86% | 5.42% | -4.52% | -8.87% | |
65 Neutral | HK$650.70M | 5.93 | 7.76% | 8.00% | -35.49% | -32.38% | |
62 Neutral | HK$228.52M | 1.65 | 7.82% | 2.39% | -39.70% | -51.97% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
45 Neutral | HK$21.06B | -3.86 | -11.45% | 0.38% | -1.22% | 8.37% | |
44 Neutral | HK$13.75B | -4.03 | -18.85% | 6.49% | -6.57% | -6.67% | |
43 Neutral | HK$47.52M | -2.91 | -49.70% | ― | -1.48% | 69.34% |
* Basic Materials Sector Average
HK:1938
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.
0.23
-0.21
-48.64%
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-0.42
-31.77%
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0.23
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Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Corporate Events
Chu Kong Petroleum & Natural Gas Steel Pipe Swings to Smaller Profit on Revenue Slump
Aug 28, 2026
Chu Kong Petroleum Natural Gas Steel Pipe Holdings reported a sharp revenue decline to RMB611.7 million for the six months ended 30 June 2026, down from RMB1.39 billion a year earlier, as gross profit fell to RMB124.6 million from RMB255.4 millio...
Chu Kong Steel Pipe Issues Profit Warning Amid Middle East Disruptions
Aug 27, 2026
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd. has warned that its consolidated net profit for the first half of 2026 is expected to be not less than RMB40 million, sharply lower than the RMB246.3 million recorded for full-year 2025 a...
Chu Kong Petroleum Schedules Board Meeting on Interim Results and Dividend
Aug 18, 2026
Chu Kong Petroleum Natural Gas Steel Pipe Holdings Ltd., a Hong Kong-listed manufacturer of steel pipes for the petroleum and natural gas sectors, operates mainly from Guangdong Province to serve energy industry clients. The company is governed b...
Chu Kong Steel Pipe Wins Strong Shareholder Backing at 2026 AGM
Jun 12, 2026
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings reported that all resolutions at its 12 June 2026 annual general meeting in Hong Kong were approved by shareholders via poll with an overwhelming majority. The meeting covered routine corporat...
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.