SEHK:1033

Stock Analysis Report

Sinopec Oilfield Service

Executive Summary

Sinopec Oilfield Service Corporation provides petroleum engineering and technical services in the People’s Republic of China and internationally.


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has Sinopec Oilfield Service's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1033 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

1033

0.06%

HK Energy Services

-0.6%

HK Market


1 Year Return

-13.5%

1033

17.0%

HK Energy Services

-7.6%

HK Market

Return vs Industry: 1033 underperformed the Hong Kong Energy Services industry which returned 17% over the past year.

Return vs Market: 1033 matched the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1033IndustryMarket
7 Day-1.3%0.06%-0.6%
30 Day-10.5%-4.0%-1.4%
90 Day-3.8%4.4%2.0%
1 Year-13.5%-13.5%17.7%17.0%-4.2%-7.6%
3 Year-52.5%-52.5%-16.1%-17.2%12.9%1.5%
5 Year-72.0%-72.0%-46.6%-48.2%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Sinopec Oilfield Service's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sinopec Oilfield Service undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1033 (HK$0.78) is trading below our estimate of fair value (HK$4.2)

Significantly Below Fair Value: 1033 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1033 is poor value based on its PE Ratio (30.3x) compared to the Energy Services industry average (7.4x).

PE vs Market: 1033 is poor value based on its PE Ratio (30.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1033 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 1033 is overvalued based on its PB Ratio (1.9x) compared to the HK Energy Services industry average (0.8x).


Next Steps

Future Growth

How is Sinopec Oilfield Service forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

39.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1033's forecast earnings growth (39.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1033's earnings (39.1% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1033's revenue (11.6% per year) is forecast to grow faster than the Hong Kong market (9.6% per year).

High Growth Revenue: 1033's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1033's Return on Equity is forecast to be low in 3 years time (18.2%).


Next Steps

Past Performance

How has Sinopec Oilfield Service performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1033 has a large one-off gain of CN¥233.6M impacting its September 30 2019 financial results.

Growing Profit Margin: 1033 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 1033 has become profitable over the past 5 years, growing earnings by -11.1% per year.

Accelerating Growth: 1033 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1033 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (31.4%).


Return on Equity

High ROE: 1033's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sinopec Oilfield Service's financial position?


Financial Position Analysis

Short Term Liabilities: 1033's short term assets (CN¥37.9B) do not cover its short term liabilities (CN¥57.0B).

Long Term Liabilities: 1033's short term assets (CN¥37.9B) exceed its long term liabilities (CN¥2.9B).


Debt to Equity History and Analysis

Debt Level: 1033's debt to equity ratio (279%) is considered high.

Reducing Debt: 1033's debt to equity ratio has increased from 60.6% to 279% over the past 5 years.


Balance Sheet

Inventory Level: 1033 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1033's debt is covered by short term assets (assets are 2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1033 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 1033 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Sinopec Oilfield Service's current dividend yield, its reliability and sustainability?

0.72%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage0.7%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1033's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1033's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1033's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1033's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1033's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Jianqiang Yuan (56yo)

0.8yrs

Tenure

0

Mr. Jianqiang Yuan serves as General Manger of Sinopec Oilfield Service Corporation since May 20, 2019 and serves as its Executive Director since June 26, 2019. Mr. Jianqiang has been Non-Independent Direc ...


Leadership Team

NamePositionTenureCompensationOwnership
Xikun Chen
Executive Chairman0.2yrsCN¥696.00kno data
Yongjie Zhang
Deputy General Manager5yrsCN¥685.70kno data
Yaojiu Zuo
Deputy General Manager2.7yrsCN¥621.85kno data
Jinhong Zhang
Deputy General Manager4.8yrsCN¥573.10kno data
Honghai Li
Secretary to the Board5yrsCN¥429.36kno data
Jianqiang Yuan
GM & Executive Director0.8yrsno datano data
Yi Xiao
Chief Financial Officer0.2yrsno datano data

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 1033's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xikun Chen
Executive Chairman0.2yrsCN¥696.00kno data
Jianqiang Yuan
GM & Executive Director0.8yrsno datano data
Weidong Chen
Independent Non-Executive Director1.7yrsCN¥100.00kno data
Bo Jiang
Independent Non-Executive Director5yrsCN¥200.00kno data
Ying Pan
Independent Non-Executive Director4.2yrsCN¥200.00kno data
Baoping Lu
Non-Executive Director2yrsno datano data
Zhonghai Fan
Non-Executive Director2yrsno datano data
Ran Wei
Non-Executive Director1.7yrsno datano data
Xiucheng Dong
Independent Non-Executive Director1.7yrsCN¥100.00kno data
Xiang Ma
Chairman of Supervisory Board0.2yrsno datano data

1.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 1033's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.


Top Shareholders

Company Information

Sinopec Oilfield Service Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sinopec Oilfield Service Corporation
  • Ticker: 1033
  • Exchange: SEHK
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: HK$38.352b
  • Shares outstanding: 18.98b
  • Website: https://ssc.sinopec.com

Number of Employees


Location

  • Sinopec Oilfield Service Corporation
  • No. 22, Chaoyangmen North Street
  • Chaoyang District
  • Beijing
  • 100728
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1033SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDAug 2003
YIZHDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURAug 2003
YZCF.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDAug 2003
1033SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDAug 2003
600871SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYDec 2014
600871XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYDec 2014

Biography

Sinopec Oilfield Service Corporation provides petroleum engineering and technical services in the People’s Republic of China and internationally. The company operates in five segments: Geophysics, Drilling Engineering, Logging and Mud Logging, Special Down-Hole Operations, and Engineering Construction. The Geophysics segment offers terrestrial and marine geophysical exploration, development, and technical services. The Drilling Engineering segment provides land and ocean drilling design, construction, and technical services, as well as drilling instrumentation. The Logging and Mud Logging segment offers land and ocean project contracting and technical services for collection, monitoring, transmission, processing and interpretation, and evaluation of wellbore oil and gas, geology, and engineering information. The Special Down-Hole Operations segment provides oil engineering technical and construction services, including oil testing, well repair, and lateral drilling, as well as fracturing, acidizing, and oil assignments. The Engineering Construction segment offers various services, such as feasibility studies, design, procurement, and construction for projects of onshore and offshore oil and gas fields, long-distance pipeline projects, oil and gas transporting process projects, storage and transportation projects, petrochemical supporting projects, building construction, water resources and hydropower, ports and waterways, electricity transmission and distribution projects, manufacturing of pressure vessels, LNG projects, coal chemical engineering, geothermal utilization, energy saving, and municipal roads and bridges. The company was formerly known as Sinopec Yizheng Chemical Fibre Company Limited and changed its name to Sinopec Oilfield Service Corporation in March 2015. The company is headquartered in Beijing, the People’s Republic of China. Sinopec Oilfield Service Corporation is a subsidiary of China Petrochemical Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:38
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.