How does 2386's PE Ratio compare to its peers?

2386 is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (6.6x).

How does 2386's PE Ratio compare vs other companies in the HK Construction Industry?

2386 is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the Hong Kong Construction industry average (10.8x).

What is 2386's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

Insufficient data to calculate 2386's Price-To-Earnings Fair Ratio for valuation analysis.

What is the Fair Price of 2386 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2386 (HK$6.73) is trading above our estimate of [[fair value]] (HK$4.88)

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Target price is lower than the current share price.

2386 Stock Overview

Provides engineering, procurement, and construction (EPC) contracting services in the People’s Republic of China, Saudi Arabia, Kuwait, and internationally. More details

2386 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	3/6
Financial Health	5/6
Dividends	2/6

Rewards

Earnings are forecast to grow 12.18% per year

Earnings grew by 4.1% over the past year

Risk Analysis

High level of non-cash earnings

Dividend of 5.35% is not well covered by free cash flows

My Notes

Capture your thoughts, links and company narrative

SINOPEC Engineering (Group) Co., Ltd. Competitors

China Communications Services

SEHK:552

HK$31.6b

Metallurgical Corporation of China

SEHK:1618

HK$67.4b

China Conch Venture Holdings

SEHK:586

HK$12.0b

China State Construction International Holdings

SEHK:3311

HK$61.8b

Price History & Performance

Summary of share price highs, lows and changes for SINOPEC Engineering (Group)
Historical stock prices
Current Share Price	HK$6.73
52 Week High	HK$6.87
52 Week Low	HK$4.90
Beta	0.72
1 Month Change	18.49%
3 Month Change	24.17%
1 Year Change	n/a
3 Year Change	70.81%
5 Year Change	41.39%
Change since IPO	0.60%

Recent updates

Shareholder Returns

	2386	HK Construction	HK Market
7D	0.7%	0.2%	0.3%
1Y	n/a	28.9%	19.4%

Return vs Industry: Insufficient data to determine how 2386 performed against the Hong Kong Construction industry.

Return vs Market: Insufficient data to determine how 2386 performed against the Hong Kong Market.

Price Volatility

Is 2386's price volatile compared to industry and market?
2386 volatility
2386 Average Weekly Movement	4.6%
Construction Industry Average Movement	8.2%
Market Average Movement	8.4%
10% most volatile stocks in HK Market	17.7%
10% least volatile stocks in HK Market	3.8%

Stable Share Price: 2386 has not had significant price volatility in the past 3 months compared to the Hong Kong market.

Volatility Over Time: Insufficient data to determine 2386's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
2012	15,626	Xinming Zhang	www.segroup.cn

SINOPEC Engineering (Group) Co., Ltd., together with its subsidiaries, provides engineering, procurement, and construction (EPC) contracting services in the People’s Republic of China, Saudi Arabia, Kuwait, and internationally. The company operates through Engineering, Consulting and Licensing; EPC Contracting; Construction; and Equipment Manufacturing segments. The Engineering, Consulting and Licensing segment offers design, consulting, research and development, feasibility studies, and compliance certification services.

SINOPEC Engineering (Group) Co., Ltd. Fundamentals Summary

How do SINOPEC Engineering (Group)'s earnings and revenue compare to its market cap?
2386 fundamental statistics
Market cap	HK$29.60b
Earnings (TTM)	HK$2.49b
Revenue (TTM)	HK$63.78b

11.9x

P/E Ratio

0.5x

P/S Ratio

Is 2386 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
2386 income statement (TTM)
Revenue	CN¥59.94b
Cost of Revenue	CN¥54.08b
Gross Profit	CN¥5.87b
Other Expenses	CN¥3.53b
Earnings	CN¥2.34b

Last Reported Earnings

Jun 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)	0.53
Gross Margin	9.79%
Net Profit Margin	3.90%
Debt/Equity Ratio	0.4%

How did 2386 perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

71%

Payout Ratio

Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2025/01/01 07:19
End of Day Share Price	2024/12/31 00:00
Earnings	2024/06/30
Annual Earnings	2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

SINOPEC Engineering (Group) Co., Ltd. is covered by 24 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Cho Ming Lau	BOCI Research Ltd.
Yiming Wang	BofA Global Research
null null	China International Capital Corporation Limited

SINOPEC Engineering (Group) SHSC:2386 Stock Report