Investors Appear Satisfied With Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited’s (HKG:1938) Prospects As Shares Rocket 31%

Those holding Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited (HKG:1938) shares would be relieved that the share price has rebounded 31% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. The last 30 days bring the annual gain to a very sharp 93%.

In spite of the firm bounce in price, there still wouldn’t be many who think Chu Kong Petroleum and Natural Gas Steel Pipe Holdings’ price-to-sales (or “P/S”) ratio of 0.1x is worth a mention when the median P/S in Hong Kong’s Energy Services industry is similar at about 0.5x. Although, it’s not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

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View our latest analysis for Chu Kong Petroleum and Natural Gas Steel Pipe Holdings

SEHK:1938 Price to Sales Ratio vs Industry January 19th 2026 What Does Chu Kong Petroleum and Natural Gas Steel Pipe Holdings’ Recent Performance Look Like?

For example, consider that Chu Kong Petroleum and Natural Gas Steel Pipe Holdings’ financial performance has been poor lately as its revenue has been in decline. One possibility is that the P/S is moderate because investors think the company might still do enough to be in line with the broader industry in the near future. If not, then existing shareholders may be a little nervous about the viability of the share price.

Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Chu Kong Petroleum and Natural Gas Steel Pipe Holdings will help you shine a light on its historical performance. Do Revenue Forecasts Match The P/S Ratio?

There’s an inherent assumption that a company should be matching the industry for P/S ratios like Chu Kong Petroleum and Natural Gas Steel Pipe Holdings’ to be considered reasonable.

Taking a look back first, the company’s revenue growth last year wasn’t something to get excited about as it posted a disappointing decline of 13%. Regardless, revenue has managed to lift by a handy 26% in aggregate from three years ago, thanks to the earlier period of growth. So we can start by confirming that the company has generally done a good job of growing revenue over that time, even though it had some hiccups along the way.

It’s interesting to note that the rest of the industry is similarly expected to grow by 8.6% over the next year, which is fairly even with the company’s recent medium-term annualised growth rates.

With this information, we can see why Chu Kong Petroleum and Natural Gas Steel Pipe Holdings is trading at a fairly similar P/S to the industry. It seems most investors are expecting to see average growth rates continue into the future and are only willing to pay a moderate amount for the stock.

The Key Takeaway

Its shares have lifted substantially and now Chu Kong Petroleum and Natural Gas Steel Pipe Holdings’ P/S is back within range of the industry median. Using the price-to-sales ratio alone to determine if you should sell your stock isn’t sensible, however it can be a practical guide to the company’s future prospects.

As we’ve seen, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings’ three-year revenue trends seem to be contributing to its P/S, given they look similar to current industry expectations. Right now shareholders are comfortable with the P/S as they are quite confident future revenue won’t throw up any surprises. If recent medium-term revenue trends continue, it’s hard to see the share price moving strongly in either direction in the near future under these circumstances.

Before you settle on your opinion, we’ve discovered 4 warning signs for Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (1 shouldn’t be ignored!) that you should be aware of.

If you’re unsure about the strength of Chu Kong Petroleum and Natural Gas Steel Pipe Holdings’ business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.