Shandong Molong Petroleum Machinery Co Ltd: Stock Surge and Market Developments

Shandong Molong Petroleum Machinery Co Ltd, a Chinese energy equipment and service company, experienced a significant surge in its stock price, with its Hong Kong-listed shares jumping over 100% recently. This remarkable increase follows the announcement by the Shenzhen Stock Exchange (SZSE) that Shandong Molong’s A-shares, listed on the SZSE, were removed from the Other Risks Alert. Consequently, the company’s H-shares were added to the list of Hong Kong stocks under the Shenzhen-Hong Kong Stock Connect, effective immediately.

On May 6, 2025, Shandong Molong’s shares opened 14.9% higher and soared by 58% to a peak of HKD 2.75, marking more than a year high. The stock last traded at HKD 2.51, up 44.25%, with 33.8468 million shares traded, involving a capital of HKD 81.8665 million. This surge is attributed to the increased trading volume and investor interest following the inclusion in the Stock Connect program.

Despite the recent stock performance, Shandong Molong reported a net loss of HKD 436.998 million for the year 2024, a significant improvement from the previous year’s loss of HKD 567 million. The company’s total revenue for 2024 was HKD 1.356 billion, showing a 2.95% increase year-over-year. The net cash flow from operating activities was HKD 438.728 million, down 67.5% from the previous year.

The company’s primary business involves the manufacturing and sale of petroleum extraction machinery and related accessories, including oil well pipes, sucker rods, pumps, and other accessories. Shandong Molong is listed on the Hong Kong Stock Exchange and has been publicly traded since its IPO on April 15, 2004.

In the broader market context, the A-share market saw a significant rally, with technology and innovation sectors leading the gains. Notably, the controlled nuclear fusion, rare earth magnets, brain-machine interface, and Huawei-related sectors experienced substantial increases. This rally was partly driven by positive news, such as the early start of the construction for China’s compact fusion experiment device, which is expected to advance nuclear fusion research and development.

Overall, Shandong Molong’s recent stock performance reflects both the company’s strategic market positioning and broader market trends favoring energy and technology sectors. Investors and market analysts will continue to monitor the company’s financial health and market developments closely.