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

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.

(HKEX:1938)

Select Model

Rating:57Neutral

Price Target:HKD 0.17▲(3.57% Upside)

Action:reiterated

Date:09/27/26

The score is supported mainly by very low valuation (P/E ~1.43) and improved profitability versus earlier stress. Offsetting this are weaker recent fundamentals (2025 revenue decline, very thin operating margin, and sharply lower free cash flow) and bearish technicals (below major moving averages with negative MACD), which raise near-term risk despite the cheap multiple.

Positive Factors

Improved profitabilityThe recovery from a 2021 loss to sustained profitability through 2025 demonstrates a materially stronger earnings base. The higher net margin provides greater internal funding capacity and resilience, although its durability still depends on restoring operating profitability.

Negative Factors

Revenue contractionThe latest revenue decline signals weaker demand or end-market conditions and interrupts the prior growth pattern. If contraction persists, lower scale can reduce operating leverage, pressure profitability, and limit the company’s ability to compound earnings over the next several quarters.

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (1938) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 169.87M
Dividend Yield: ―
Average Volume (3M): 270.82K
Price to Earnings (P/E): 1.2
Beta (1Y): 0.83
Revenue Growth: -39.70%
EPS Growth: -51.97%
Country: Hong Kong
Employees: 824
Sector: Basic Materials
Sector Strength: 61
Industry: Steel

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 pro...

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

Profitability improved materially versus 2021 and remains solid at the net level, but 2025 shows rising pressure: revenue declined ~14.9%, operating margin is very thin (~1.4%), and free cash flow fell sharply with weaker cash conversion versus earnings. Leverage has improved but remains meaningful (debt-to-equity ~1.16x), limiting flexibility in a cyclical industry.

Income Statement

62Positive

Balance Sheet

57Neutral

Cash Flow

44Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.58B	2.35B	2.94B	2.65B	2.36B	1.81B
Gross Profit	304.84M	435.53M	517.41M	554.21M	470.62M	195.52M
EBITDA	54.21M	125.47M	162.13M	175.16M	282.97M	-86.19M
Net Income	118.77M	246.31M	212.67M	183.78M	163.03M	-94.35M
Balance Sheet
Total Assets	6.16B	5.92B	6.51B	6.42B	6.55B	7.92B
Cash, Cash Equivalents and Short-Term Investments	59.94M	26.17M	53.32M	260.71M	16.13M	638.46M
Total Debt	1.79B	1.74B	1.87B	1.83B	1.78B	1.81B
Total Liabilities	4.62B	4.30B	5.27B	5.35B	5.62B	7.10B
Stockholders Equity	1.54B	1.50B	1.24B	1.08B	930.94M	825.52M
Cash Flow
Free Cash Flow	-70.47M	123.20M	205.87M	334.81M	140.76M	-973.59M
Operating Cash Flow	-46.82M	154.12M	205.87M	431.07M	154.07M	-904.63M
Investing Cash Flow	13.33M	-4.19M	-55.82M	-8.68M	38.17M	2.56B
Financing Cash Flow	71.98M	-197.65M	-78.47M	-366.03M	-149.10M	-1.71B

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price0.17

Price Trends

50DMA0.21Negative

100DMA0.22Negative

200DMA0.28Negative

Market Momentum

MACD-0.01Negative

RSI37.02Neutral

STOCH13.79Positive

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 0.17 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.21, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 37.02 is Neutral, neither overbought nor oversold. The STOCH value of 13.79 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:1938 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1118	72Outperform	HKD 672.02M	4.77	9.86%	5.98%	-4.52%	-8.87%
HK:1553	65Neutral	HKD 616.00M	5.56	7.76%	8.45%	-35.49%	-32.38%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:1938	57Neutral	HKD 169.87M	1.21	7.82%	―	-39.70%	-51.97%
HK:1053	44Neutral	HKD 12.61B	-3.67	-18.85%	―	-6.57%	-6.67%
HK:8402	42Neutral	HKD 95.04M	-7.42	-28.01%	―	-1.48%	69.10%
HK:0347	39Underperform	HKD 18.92B	-3.49	-14.44%	―	-1.18%	-55.60%

* Basic Materials Sector Average

Performance Comparison

HK:1938 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1938	Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.	0.17	-0.15	-47.50%
HK:0347	Angang Steel Co Class H	0.99	-1.08	-52.16%
HK:1053	Chongqing Iron & Steel Co., Ltd. Class H	0.79	-0.58	-42.34%
HK:1118	Golik Holdings Limited	1.17	0.23	24.34%
HK:1553	Maike Tube Industry Holdings Limited	1.42	-0.03	-2.07%
HK:8402	GT Steel Construction Group Limited	0.13	0.04	36.08%

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 mill...

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 and...

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...

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: Sep 27, 2026

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