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SINOPEC Engineering (Group)

SEHK:2386
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2386
SEHK
HK$27B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

SINOPEC Engineering (Group) Co., Ltd., together with its subsidiaries, provides EPC contracting services in the People’s Republic of China. The last earnings update was 132 days ago. More info.


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  • SINOPEC Engineering (Group) has significant price volatility in the past 3 months.
2386 Share Price and Events
7 Day Returns
-3.3%
SEHK:2386
0.9%
HK Construction
0.8%
HK Market
1 Year Returns
-23.2%
SEHK:2386
-10.9%
HK Construction
-4.4%
HK Market
2386 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SINOPEC Engineering (Group) (2386) -3.3% -10.9% -17.5% -23.2% -9.1% -30%
HK Construction 0.9% -5.5% -13.3% -10.9% -21.1% -4.4%
HK Market 0.8% 0.3% -7.4% -4.4% 17.8% 1.7%
1 Year Return vs Industry and Market
  • 2386 underperformed the Construction industry which returned -10.9% over the past year.
  • 2386 underperformed the Market in Hong Kong which returned -4.4% over the past year.
Price Volatility
2386
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for SINOPEC Engineering (Group)'s competitors could be found in our database.

2386 Value

 Is SINOPEC Engineering (Group) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SINOPEC Engineering (Group) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SINOPEC Engineering (Group).

SEHK:2386 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2386
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.036 (1 + (1- 25%) (1.62%))
1.033
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.033 * 5.96%)
8.16%

Discounted Cash Flow Calculation for SEHK:2386 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SINOPEC Engineering (Group) is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2386 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.16%)
2020 4,297.00 Analyst x2 3,972.88
2021 5,443.00 Analyst x1 4,652.85
2022 5,486.78 Est @ 0.8% 4,336.49
2023 5,550.65 Est @ 1.16% 4,056.07
2024 5,629.23 Est @ 1.42% 3,803.21
2025 5,718.84 Est @ 1.59% 3,572.32
2026 5,816.93 Est @ 1.72% 3,359.51
2027 5,921.72 Est @ 1.8% 3,162.06
2028 6,031.98 Est @ 1.86% 2,977.99
2029 6,146.85 Est @ 1.9% 2,805.80
Present value of next 10 years cash flows CN¥36,699.18
SEHK:2386 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥6,146.85 × (1 + 2%) ÷ (8.16% – 2%)
CN¥101,863.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥101,863.80 ÷ (1 + 8.16%)10
CN¥46,496.83
SEHK:2386 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥36,699.18 + CN¥46,496.83
CN¥83,196.02
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥83,196.02 / 4,428.00
CN¥18.79
SEHK:2386 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2386)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥18.79 x 1.135
HK$21.32
Value per share (HKD) From above. HK$21.32
Current discount Discount to share price of HK$6.07
= -1 x (HK$6.07 - HK$21.32) / HK$21.32
71.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SINOPEC Engineering (Group) is available for.
Intrinsic value
>50%
Share price is HK$6.07 vs Future cash flow value of HK$21.32
Current Discount Checks
For SINOPEC Engineering (Group) to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SINOPEC Engineering (Group)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SINOPEC Engineering (Group)'s share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SINOPEC Engineering (Group)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SINOPEC Engineering (Group)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2386 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.38
SEHK:2386 Share Price ** SEHK (2019-07-19) in HKD HK$6.07
SEHK:2386 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥5.35
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 10.2x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SINOPEC Engineering (Group).

SEHK:2386 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2386 Share Price ÷ EPS (both in CNY)

= 5.35 ÷ 0.38

14.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SINOPEC Engineering (Group) is overvalued based on earnings compared to the HK Construction industry average.
  • SINOPEC Engineering (Group) is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does SINOPEC Engineering (Group)'s expected growth come at a high price?
Raw Data
SEHK:2386 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
20%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 10 Publicly-Listed Construction Companies 0.56x
Hong Kong Market PEG Ratio Median Figure of 481 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:2386 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.1x ÷ 20%

0.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SINOPEC Engineering (Group) is good value based on expected growth next year.
Price based on value of assets
What value do investors place on SINOPEC Engineering (Group)'s assets?
Raw Data
SEHK:2386 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥5.87
SEHK:2386 Share Price * SEHK (2019-07-19) in HKD HK$6.07
SEHK:2386 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥5.35
Hong Kong Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.37x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:2386 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2386 Share Price ÷ Book Value per Share (both in CNY)

= 5.35 ÷ 5.87

0.91x

* Primary Listing of SINOPEC Engineering (Group).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SINOPEC Engineering (Group) is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess SINOPEC Engineering (Group)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. SINOPEC Engineering (Group) has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2386 Future Performance

 How is SINOPEC Engineering (Group) expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SINOPEC Engineering (Group) expected to grow at an attractive rate?
  • SINOPEC Engineering (Group)'s earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • SINOPEC Engineering (Group)'s earnings growth is expected to exceed the Hong Kong market average.
  • SINOPEC Engineering (Group)'s revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2386 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2386 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 20%
SEHK:2386 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 6.9%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2386 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2386 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 58,029 4,002 3,298 8
2020-12-31 54,214 4,458 3,194 11
2019-12-31 51,121 4,143 2,806 10
SEHK:2386 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 47,019 6,104 1,679
2018-09-30 43,900 5,024 1,541
2018-06-30 40,780 3,944 1,403
2018-03-31 38,494 4,092 1,266
2017-12-31 36,209 4,241 1,130
2017-09-30 35,820 4,682 1,278
2017-06-30 35,432 5,124 1,427
2017-03-31 37,417 4,898 1,549
2016-12-31 39,402 4,671 1,671
2016-09-30 40,852 4,180 2,175
2016-06-30 42,328 3,838 2,686
2016-03-31 43,913 4,815 3,002

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SINOPEC Engineering (Group)'s earnings are expected to grow by 20% yearly, however this is not considered high growth (20% yearly).
  • SINOPEC Engineering (Group)'s revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2386 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from SINOPEC Engineering (Group) Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2386 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.75 0.87 0.66 6.00
2020-12-31 0.72 0.89 0.56 8.00
2019-12-31 0.65 0.73 0.52 8.00
SEHK:2386 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.38
2018-09-30 0.35
2018-06-30 0.32
2018-03-31 0.29
2017-12-31 0.26
2017-09-30 0.29
2017-06-30 0.32
2017-03-31 0.35
2016-12-31 0.38
2016-09-30 0.49
2016-06-30 0.61
2016-03-31 0.68

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SINOPEC Engineering (Group) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SINOPEC Engineering (Group)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SINOPEC Engineering (Group) has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2386 Past Performance

  How has SINOPEC Engineering (Group) performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SINOPEC Engineering (Group)'s growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SINOPEC Engineering (Group)'s year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • SINOPEC Engineering (Group)'s 1-year earnings growth exceeds its 5-year average (48.6% vs -23.2%)
  • SINOPEC Engineering (Group)'s earnings growth has exceeded the HK Construction industry average in the past year (48.6% vs -13.1%).
Earnings and Revenue History
SINOPEC Engineering (Group)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SINOPEC Engineering (Group) Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2386 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 47,019.02 1,679.47 1,518.82 1,675.69
2018-09-30 43,899.60 1,541.07 1,446.08 1,377.32
2018-06-30 40,780.18 1,402.66 1,373.34 1,078.96
2018-03-31 38,494.45 1,266.32 1,372.28 1,040.93
2017-12-31 36,208.72 1,129.97 1,371.22 1,002.91
2017-09-30 35,820.33 1,278.31 1,387.36 1,046.98
2017-06-30 35,431.95 1,426.64 1,403.50 1,091.05
2017-03-31 37,417.14 1,548.76 1,372.42 1,102.07
2016-12-31 39,402.33 1,670.89 1,341.35 1,113.08
2016-09-30 40,851.79 2,174.51 1,293.09 1,118.59
2016-06-30 42,328.15 2,686.15 1,245.34 1,124.10
2016-03-31 43,913.25 3,001.92 1,275.93 1,154.53
2015-12-31 45,498.35 3,317.70 1,306.53 1,184.96
2015-09-30 46,549.77 3,320.35 1,331.51 1,133.31
2015-06-30 47,601.18 3,323.00 1,356.49 1,081.67
2015-03-31 48,473.57 3,406.40 1,355.10 1,007.96
2014-12-31 49,345.96 3,489.80 1,353.71 934.25
2014-09-30 47,961.09 3,404.97 1,344.84 810.71
2014-06-30 46,576.23 3,320.15 1,335.96 687.17
2014-03-31 45,074.04 3,488.47 1,313.09 658.43
2013-12-31 43,571.85 3,656.80 1,290.23 629.70
2013-09-30 42,427.68 3,594.70 1,204.74 611.96
2013-06-30 41,283.51 3,532.60 1,119.25 594.22
2013-03-31 39,905.00 3,424.79 1,137.72 570.89
2012-12-31 38,526.49 3,316.97 1,156.18 547.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SINOPEC Engineering (Group) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SINOPEC Engineering (Group) used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.
  • SINOPEC Engineering (Group)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SINOPEC Engineering (Group)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SINOPEC Engineering (Group) has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2386 Health

 How is SINOPEC Engineering (Group)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SINOPEC Engineering (Group)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SINOPEC Engineering (Group) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SINOPEC Engineering (Group)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SINOPEC Engineering (Group)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 166.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SINOPEC Engineering (Group) Company Filings, last reported 6 months ago.

SEHK:2386 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 25,983.15 384.34 19,155.72
2018-09-30 25,983.15 384.34 19,155.72
2018-06-30 25,940.71 569.03 14,493.39
2018-03-31 25,940.71 569.03 14,493.39
2017-12-31 25,591.01 431.26 16,089.23
2017-09-30 25,591.01 431.26 16,089.23
2017-06-30 25,707.10 243.88 12,898.87
2017-03-31 25,707.10 243.88 12,898.87
2016-12-31 25,265.11 0.00 14,153.71
2016-09-30 25,201.92 0.00 14,115.63
2016-06-30 24,910.65 0.00 10,367.18
2016-03-31 24,910.65 0.00 10,367.18
2015-12-31 24,638.51 0.00 13,197.21
2015-09-30 24,638.51 0.00 13,197.21
2015-06-30 23,735.72 0.00 10,705.83
2015-03-31 23,735.72 0.00 10,705.83
2014-12-31 22,872.57 0.00 9,726.91
2014-09-30 22,872.57 0.00 9,726.91
2014-06-30 21,897.32 0.00 10,317.83
2014-03-31 21,897.32 0.00 10,317.83
2013-12-31 20,980.34 0.00 10,969.90
2013-09-30 20,980.34 0.00 10,969.90
2013-06-30 19,910.43 0.00 14,625.80
2013-03-31 19,910.43 0.00 14,625.80
2012-12-31 7,081.25 157.14 4,883.26
  • SINOPEC Engineering (Group)'s level of debt (1.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 1.5% today).
  • Debt is well covered by operating cash flow (1588.2%, greater than 20% of total debt).
  • SINOPEC Engineering (Group) earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess SINOPEC Engineering (Group)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SINOPEC Engineering (Group) has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2386 Dividends

 What is SINOPEC Engineering (Group)'s current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.19%
Current annual income from SINOPEC Engineering (Group) dividends. Estimated to be 6.4% next year.
If you bought HK$2,000 of SINOPEC Engineering (Group) shares you are expected to receive HK$84 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SINOPEC Engineering (Group)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • SINOPEC Engineering (Group)'s dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2386 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2386 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.39 8.00
2020-12-31 0.34 11.00
2019-12-31 0.31 11.00
SEHK:2386 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-11 0.224 3.690
2018-08-21 0.244 3.759
2018-03-19 0.200 3.055
2017-03-20 0.150 2.450
2016-03-21 0.297 5.100
2015-08-31 0.301 5.663
2015-03-30 0.312 5.391
2014-08-18 0.315 5.891
2014-03-17 0.380 5.431
2013-09-09 0.268 3.234

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SINOPEC Engineering (Group) has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • SINOPEC Engineering (Group) has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of SINOPEC Engineering (Group)'s earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess SINOPEC Engineering (Group)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SINOPEC Engineering (Group) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SINOPEC Engineering (Group) has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2386 Management

 What is the CEO of SINOPEC Engineering (Group)'s salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Wenwu Xiang
COMPENSATION CN¥1,100,000
AGE 53
TENURE AS CEO 2.5 years
CEO Bio

Mr. Wenwu Xiang has been an Executive Director of Sinopec Engineering (Group) Co., Ltd. since February 21, 2017. Mr. Xiang has been the President of Sinopec Engineering (Group) Co., Ltd. (Alternate Names, Sinopec Fuel Oil) since January 5, 2017 and served as its Vice President from August 24, 2012 to January 5, 2017. Mr. Xiang served as General Manager and Executive Director of Sinopec Nanjing Engineering & Construction Incorporation from April 2012 to November 2014. He was a director and general manager of Sinopec Nanjing Engineering & Construction Incorporation from December 2009 to April 2012. Mr. Xiang worked in the Mechanical Engineering Office of China Petrochemical Corporation Second Construction Company (China Petrochemical Corporation SCC) from July 1988 to September 1993. He served as deputy chief accountant of China Petrochemical Corporation SCC from August 1995 to May 1998; deputy manager of the First Engineering Company of China Petrochemical Corporation SCC from November 1997 to February 1999; deputy chief economist of China Petrochemical Corporation SCC from May 1998 to June 1999; manager of marketing division of Sinopec Group Second Construction Company (Sinopec Group SCC) from February 1999 to June 1999; deputy manager of Sinopec Group Second Construction Company from June 1999 to March 2004; manager of Sinopec Group Second Construction Company from March 2004 to December 2008; general manager of Sinopec Group Second Construction Company from December 2008 to July 2010; and general manager of Sinopec Group Nanjing from December 2009 to April 2012. He served as Executive Director of Sinopec Group Nanjing from December 2009 to April 2012. Mr. Xiang was recognized as a professor-level senior economist by Sinopec Group in December 2003. Mr. Xiang graduated from Dalian Railway University with a Bachelor's degree in Engineering for locomotive and device in July 1988 and obtained an MBA degree from Dalian University of Technology in August 1996 and received a Doctorate (Ph.D.) degree in System Engineering from Southeast University in November 2007.

CEO Compensation
  • Wenwu's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Wenwu's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the SINOPEC Engineering (Group) management team in years:

2.5
Average Tenure
53
Average Age
  • The tenure for the SINOPEC Engineering (Group) management team is about average.
Management Team

Wenwu Xiang

TITLE
President & Executive Director
COMPENSATION
CN¥1M
AGE
53
TENURE
2.5 yrs

Dong Lu

TITLE
Vice Chairman
COMPENSATION
CN¥1M
AGE
55

Lili Sun

TITLE
Employee Representative Director
COMPENSATION
CN¥1M
AGE
57

Yingguan Zhou

TITLE
Employee Representative Director
COMPENSATION
CN¥111K
AGE
50
TENURE
0.8 yrs

Yiqun Jia

TITLE
CFO & Company Secretary
AGE
51
TENURE
6.9 yrs

Yi Wang

TITLE
Head of the Finance Department
Board of Directors Tenure

Average tenure and age of the SINOPEC Engineering (Group) board of directors in years:

2.4
Average Tenure
54.5
Average Age
  • The average tenure for the SINOPEC Engineering (Group) board of directors is less than 3 years, this suggests a new board.
Board of Directors

Baocai Yu

TITLE
Chairman of the Board
AGE
54
TENURE
0.8 yrs

Wenwu Xiang

TITLE
President & Executive Director
COMPENSATION
CN¥1M
AGE
53
TENURE
2.4 yrs

Dong Lu

TITLE
Vice Chairman
COMPENSATION
CN¥1M
AGE
55

Lili Sun

TITLE
Employee Representative Director
COMPENSATION
CN¥1M
AGE
57
TENURE
4.5 yrs

Yingguan Zhou

TITLE
Employee Representative Director
COMPENSATION
CN¥111K
AGE
50
TENURE
0.8 yrs

Stephen Hui

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥183K
AGE
72
TENURE
6.3 yrs

Zheng Ye

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥183K
AGE
54
TENURE
6.3 yrs

Fei Zhu

TITLE
Chairman of the Supervisory Committee
AGE
54
TENURE
2.2 yrs

Yong Jin

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥183K
AGE
84
TENURE
6.3 yrs

Wenxin Wu

TITLE
Non-Executive Director
AGE
55
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
27. Jun 19 Sell FMR LLC Company 24. Jun 19 24. Jun 19 -237,000 HK$6.82 HK$-1,615,273
21. Jun 19 Sell FIL Limited Company 18. Jun 19 18. Jun 19 -1,319,000 HK$6.62 HK$-8,725,714
16. May 19 Buy FMR LLC Company 10. May 19 10. May 19 1,015,500 HK$7.16 HK$7,275,553
20. May 19 Buy FIL Limited Company 15. May 19 15. May 19 1,026,000 HK$6.90 HK$7,077,248
13. May 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 08. May 19 08. May 19 -4,505,106 HK$7.30 HK$-32,873,774
10. May 19 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 07. May 19 07. May 19 4,121,863 HK$7.25 HK$29,868,261
02. May 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 26. Apr 19 26. Apr 19 -5,731,056 HK$7.55 HK$-43,274,643
30. Apr 19 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 25. Apr 19 25. Apr 19 5,971,399 HK$7.57 HK$45,200,486
12. Apr 19 Sell Eastspring Investments (Singapore) Limited Company 10. Apr 19 10. Apr 19 -871,000 HK$7.58 HK$-6,598,175
09. Apr 19 Buy FIL Limited Company 03. Apr 19 03. Apr 19 5,421,500 HK$7.92 HK$42,959,411
19. Mar 19 Buy FIL Limited Company 14. Mar 19 14. Mar 19 1,160,500 HK$7.52 HK$8,726,615
06. Mar 19 Sell FIL Limited Company 01. Mar 19 01. Mar 19 -2,220,500 HK$7.37 HK$-16,365,090
10. Jan 19 Buy FIL Limited Company 07. Jan 19 07. Jan 19 270,500 HK$6.84 HK$1,848,976
02. Jan 19 Buy BlackRock, Inc. Company 26. Dec 18 26. Dec 18 32,000 HK$6.19 HK$198,080
21. Dec 18 Sell J.P. Morgan Asset Management, Inc. Company 18. Dec 18 18. Dec 18 -664,499 HK$6.54 HK$-4,347,218
23. Nov 18 Sell J.P. Morgan Asset Management, Inc. Company 20. Nov 18 20. Nov 18 -1,453,261 HK$7.08 HK$-10,293,589
30. Oct 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 25. Oct 18 25. Oct 18 241,935 HK$7.32 HK$1,771,545
29. Oct 18 Sell J.P. Morgan Asset Management, Inc. Company 24. Oct 18 24. Oct 18 -621,319 HK$7.71 HK$-4,792,666
11. Oct 18 Sell FIL Limited Company 08. Oct 18 08. Oct 18 -402,000 HK$8.55 HK$-3,436,578
12. Oct 18 Sell Eastspring Investments (Singapore) Limited Company 10. Oct 18 10. Oct 18 -643,000 HK$8.57 HK$-5,510,381
25. Sep 18 Buy J.P. Morgan Asset Management, Inc. Company 20. Sep 18 20. Sep 18 1,968,564 HK$8.23 HK$16,191,629
26. Sep 18 Sell J.P. Morgan Asset Management, Inc. Company 21. Sep 18 21. Sep 18 -1,317,345 HK$8.20 HK$-10,802,490
31. Aug 18 Sell J.P. Morgan Asset Management, Inc. Company 28. Aug 18 28. Aug 18 -1,170,181 HK$8.16 HK$-9,546,458
31. Aug 18 Sell National Social Security Fund Company 29. Aug 18 29. Aug 18 -100,000 HK$8.09 HK$-809,270
28. Aug 18 Buy J.P. Morgan Asset Management, Inc. Company 23. Aug 18 23. Aug 18 8,069,167 HK$7.78 HK$62,816,844
10. Aug 18 Sell Eastspring Investments (Singapore) Limited Company 07. Aug 18 07. Aug 18 -5,175,000 HK$8.08 HK$-41,839,871
X
Management checks
We assess SINOPEC Engineering (Group)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SINOPEC Engineering (Group) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2386 News

Simply Wall St News

What To Know Before Buying SINOPEC Engineering (Group) Co., Ltd. (HKG:2386) For Its Dividend

Historically, SINOPEC Engineering (Group) Co., Ltd. … Let's take a look at SINOPEC Engineering (Group) in more detail. … See our latest analysis for SINOPEC Engineering (Group)

Simply Wall St -

SINOPEC Engineering (Group) Co., Ltd. (HKG:2386) Is Trading At A 34.44% Discount

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is SINOPEC Engineering (Group) Co., Ltd.'s (HKG:2386) Liquidity Good Enough?

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as SINOPEC Engineering (Group) Co., Ltd. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … View our latest analysis for SINOPEC Engineering (Group)

Simply Wall St -

SINOPEC Engineering (Group) Co., Ltd. (HKG:2386): Commentary On Fundamentals

Today I've chosen to put the spotlight on SINOPEC Engineering (Group) Co., Ltd. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on SINOPEC Engineering (Group) here

Simply Wall St -

Read This Before Judging SINOPEC Engineering (Group) Co., Ltd.'s (HKG:2386) ROE

SINOPEC Engineering (Group) has a ROE of 5.4%, based on the last twelve months. … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.054 in profit. … View our latest analysis for SINOPEC Engineering (Group)?

Simply Wall St -

Could The SINOPEC Engineering (Group) Co Ltd (HKG:2386) Ownership Structure Tell Us Something Useful?

If you want to know who really controls SINOPEC Engineering (Group) Co Ltd (HKG:2386), then you'll have to look at the makeup of its share registry. … SINOPEC Engineering (Group) is a pretty big company. … See our latest analysis for SINOPEC Engineering (Group)

Simply Wall St -

Should You Be Tempted To Sell SINOPEC Engineering (Group) Co Ltd (HKG:2386) Because Of Its P/E Ratio?

SINOPEC Engineering (Group) has a price to earnings ratio of 21.22, based on the last twelve months. … How Do I Calculate SINOPEC Engineering (Group)'s Price To Earnings Ratio … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

How Does SINOPEC Engineering (Group) Co Ltd (HKG:2386) Fare As A Dividend Stock?

Historically, SINOPEC Engineering (Group) Co Ltd (HKG:2386) has paid a dividend to shareholders. … Does SINOPEC Engineering (Group) tick all the boxes of a great dividend stock? … View our latest analysis for SINOPEC Engineering (Group)

Simply Wall St -

SINOPEC Engineering (Group) Co Ltd (HKG:2386): A Look At Return On Capital

and want to better understand how you can grow your money by investing in SINOPEC Engineering (Group) Co Ltd (HKG:2386). … To understand SINOPEC Engineering (Group)’s capital returns we will look at a useful metric called return on capital employed. … SINOPEC Engineering (Group)'s Return On Capital Employed

Simply Wall St -

Why SINOPEC Engineering (Group) Co Ltd's (HKG:2386) ROE Of 5.4% Does Not Tell The Whole Story

SINOPEC Engineering (Group) Co Ltd (HKG:2386) generated a below-average return on equity of 5.4% in the past 12 months, while its industry returned 11.2%. … Knowing these components can change your views on 2386's below-average returns. … View our latest analysis for SINOPEC Engineering (Group)

Simply Wall St -

2386 Company Info

Description

SINOPEC Engineering (Group) Co., Ltd., together with its subsidiaries, provides EPC contracting services in the People’s Republic of China. It operates through four segments: Engineering, Consulting, and Licensing; EPC Contracting; Construction; and Equipment manufacturing. The Engineering, Consulting, and Licensing segment offers design, consulting, research and development, feasibility studies, and compliance certification services. The EPC Contracting segment provides integrated engineering, procurement, construction, maintenance, and project management services. The Construction segment offers infrastructure for oil refining and chemical industries, oil and gas storage, pipelines transportation, construction, renovation, expansion, repair and maintenance services, and large equipment lifting, as well as transportation services in construction projects. The Equipment manufacturing segment designs, develops, manufactures, and sells oil refining equipment and spare parts for oil refining and chemical facilities. SINOPEC Engineering (Group) Co., Ltd. also provides technical, technology development, and equipment selling and leasing services, as well as medicine, pesticide, and chemical research services. The company provides engineering services for a range of industries, such as oil refining, petrochemicals, new coal chemicals, inorganic chemicals, pharmaceutical chemicals, and clean energy, storage and transportation engineering, environmental protection, and energy saving. The company is headquartered in Beijing, China. SINOPEC Engineering (Group) Co., Ltd. is a subsidiary of China Petrochemical Corporation.

Details
Name: SINOPEC Engineering (Group) Co., Ltd.
2386
Exchange: SEHK
Founded:
HK$26,877,960,000
4,428,000,000
Website: http://www.segroup.cn
Address: SINOPEC Engineering (Group) Co., Ltd.
Tower B,
No.19, Anhuibeili,
Beijing,
100101,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2386 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 23. May 2013
DB 1NS Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 23. May 2013
SHSC 2386 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 23. May 2013
SZSC 2386 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 23. May 2013
Number of employees
Current staff
Staff numbers
18,031
SINOPEC Engineering (Group) employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 01:31
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/03/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.