SINOPEC Engineering (Group)
Market Cap
HK$14.6b
Last Updated
2020/04/05 13:01 UTC
Data Sources
Company Financials +
Executive Summary
SINOPEC Engineering (Group) Co., Ltd., together with its subsidiaries, provides engineering, procurement, and construction (EPC) contracting services.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with flawless balance sheet and pays a dividend.
Share Price & News
How has SINOPEC Engineering (Group)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2386's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.5%
2386
-0.8%
HK Construction
0.2%
HK Market
1 Year Return
-57.0%
2386
-34.8%
HK Construction
-22.0%
HK Market
Return vs Industry: 2386 underperformed the Hong Kong Construction industry which returned -34.8% over the past year.
Return vs Market: 2386 underperformed the Hong Kong Market which returned -22% over the past year.
Shareholder returns
| 2386 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | -0.8% | 0.2% |
| 30 Day | -11.5% | -11.8% | -10.6% |
| 90 Day | -30.4% | -17.8% | -15.8% |
| 1 Year | -55.0%-57.0% | -31.4%-34.8% | -19.1%-22.0% |
| 3 Year | -55.7%-60.0% | -47.0%-52.6% | -3.7%-13.4% |
| 5 Year | -48.5%-57.9% | -55.9%-62.3% | -15.2%-28.8% |
Price Volatility Vs. Market
How volatile is SINOPEC Engineering (Group)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
SINOPEC Engineering (Group) Co., Ltd. Just Missed EPS By 9.9%: Here's What Analysts Think Will Happen Next2 weeks ago | Simply Wall St
Is SINOPEC Engineering (Group) Co., Ltd. (HKG:2386) At Risk Of Cutting Its Dividend?4 weeks ago | Simply Wall St
Is SINOPEC Engineering (Group) Co., Ltd. (HKG:2386) Trading At A 25% Discount?Valuation
Is SINOPEC Engineering (Group) undervalued compared to its fair value and its price relative to the market?
26.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2386 (HK$3.3) is trading below our estimate of fair value (HK$4.46)
Significantly Below Fair Value: 2386 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2386 is good value based on its PE Ratio (6.1x) compared to the Construction industry average (7.9x).
PE vs Market: 2386 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (9.1x).
Price to Earnings Growth Ratio
PEG Ratio: 2386 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: 2386 is good value based on its PB Ratio (0.5x) compared to the HK Construction industry average (0.8x).
Next Steps
Future Growth
How is SINOPEC Engineering (Group) forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
8.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2386's forecast earnings growth (8.9% per year) is above the savings rate (1.6%).
Earnings vs Market: 2386's earnings (8.9% per year) are forecast to grow slower than the Hong Kong market (11.6% per year).
High Growth Earnings: 2386's earnings are forecast to grow, but not significantly.
Revenue vs Market: 2386's revenue (4.6% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).
High Growth Revenue: 2386's revenue (4.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2386's Return on Equity is forecast to be low in 3 years time (9.2%).
Next Steps
Past Performance
How has SINOPEC Engineering (Group) performed over the past 5 years?
-18.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2386 has a high level of non-cash earnings.
Growing Profit Margin: 2386's current net profit margins (4.2%) are higher than last year (3.6%).
Past Earnings Growth Analysis
Earnings Trend: 2386's earnings have declined by -18.3% per year over the past 5 years.
Accelerating Growth: 2386's earnings growth over the past year (30%) exceeds its 5-year average (-18.3% per year).
Earnings vs Industry: 2386 earnings growth over the past year (30%) exceeded the Construction industry -2.5%.
Return on Equity
High ROE: 2386's Return on Equity (8%) is considered low.
Next Steps
Financial Health
How is SINOPEC Engineering (Group)'s financial position?
Financial Position Analysis
Short Term Liabilities: 2386's short term assets (CN¥60.6B) exceed its short term liabilities (CN¥37.8B).
Long Term Liabilities: 2386's short term assets (CN¥60.6B) exceed its long term liabilities (CN¥2.8B).
Debt to Equity History and Analysis
Debt Level: 2386 is debt free.
Reducing Debt: 2386 had no debt 5 years ago.
Debt Coverage: 2386 has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: 2386 has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 2386 has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if 2386's debt is covered by short term assets.
Next Steps
Dividend
What is SINOPEC Engineering (Group)'s current dividend yield, its reliability and sustainability?
10.60%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 2386's dividend (10.6%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.65%).
High Dividend: 2386's dividend (10.6%) is in the top 25% of dividend payers in the Hong Kong market (7.26%)
Stability and Growth of Payments
Stable Dividend: 2386 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 2386's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (64.9%), 2386's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 2386's dividends in 3 years are forecast to be covered by earnings (60.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Wenwu Xiang (53yo)
3.25s
Tenure
CN¥1,373,000
Compensation
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, ...
CEO Compensation Analysis
Compensation vs Market: Wenwu's total compensation ($USD193.64K) is below average for companies of similar size in the Hong Kong market ($USD513.50K).
Compensation vs Earnings: Wenwu's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Executive Director | 3.25yrs | CN¥1.37m | no data | |
| Employee Representative Director | 5.25yrs | CN¥1.39m | no data | |
| Employee Representative Director | 1.5yrs | CN¥1.00m | no data | |
| Executive Chairman | 0.17yr | no data | no data | |
| CFO & Company Secretary | 7.67yrs | no data | no data | |
| Head of the Finance Department & VP | no data | no data | no data |
2.4yrs
Average Tenure
52yo
Average Age
Experienced Management: 2386's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Executive Director | 3.25yrs | CN¥1.37m | no data | |
| Employee Representative Director | 5.25yrs | CN¥1.39m | no data | |
| Employee Representative Director | 1.5yrs | CN¥1.00m | no data | |
| Executive Chairman | 0.17yr | no data | no data | |
| Independent Non-Executive Director | 7yrs | CN¥200.00k | no data | |
| Independent Non-Executive Director | 7yrs | CN¥200.00k | no data | |
| Independent Non-Executive Director | 7yrs | CN¥200.00k | no data | |
| Supervisor | 5.25yrs | no data | no data | |
| Chairman of the Supervisory Committee | 2.92yrs | no data | no data | |
| Non-Executive Director | 1.5yrs | no data | no data |
4.2yrs
Average Tenure
55.5yo
Average Age
Experienced Board: 2386's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
SINOPEC Engineering (Group) Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: SINOPEC Engineering (Group) Co., Ltd.
- Ticker: 2386
- Exchange: SEHK
- Founded:
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: HK$14.612b
- Shares outstanding: 4.43b
- Website: https://www.segroup.cn
Number of Employees
Location
- SINOPEC Engineering (Group) Co., Ltd.
- Tower B
- No.19, Anhuibeili
- Beijing
- 100101
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2386 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | May 2013 |
| 1NS | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | May 2013 |
| 2386 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | May 2013 |
| 2386 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | May 2013 |
Biography
SINOPEC Engineering (Group) Co., Ltd., together with its subsidiaries, provides engineering, procurement, and construction (EPC) contracting services. 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, and equipment selling and leasing services, as well as medicine, pesticide, and chemical research services. The company serves various industries, such as petrol refining, chemical engineering, aromatics, coal chemicals, inorganic chemicals, pharmaceutical chemicals, clean energy, storage and transportation facilities, environmental protection, and energy saving. It has operations in the People’s Republic of China, Malaysia, Kuwait, Saudi Arabia, and internationally. The company is headquartered in Beijing, China. SINOPEC Engineering (Group) Co., Ltd. is a subsidiary of China Petrochemical Corporation.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/05 13:01 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.