Executive Summary
China Petroleum & Chemical Corporation, an energy and chemical company, engages in oil and gas, and chemical operations in the People’s Republic of China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with proven track record.
Similar Companies
Share Price & News
How has China Petroleum & Chemical's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 386 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: 386's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
4.0%
386
5.4%
HK Oil and Gas
-1.8%
HK Market
1 Year Return
12.0%
386
17.2%
HK Oil and Gas
27.5%
HK Market
Return vs Industry: 386 underperformed the Hong Kong Oil and Gas industry which returned 14.1% over the past year.
Return vs Market: 386 underperformed the Hong Kong Market which returned 27.1% over the past year.
Shareholder returns
| 386 | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.0% | 5.4% | -1.8% |
| 30 Day | -1.2% | 5.4% | -1.6% |
| 90 Day | 9.3% | 19.2% | -2.5% |
| 1 Year | 21.8%12.0% | 26.4%17.2% | 32.5%27.5% |
| 3 Year | -33.6%-48.5% | -28.5%-40.6% | 4.0%-7.0% |
| 5 Year | 12.5%-19.7% | 1.5%-20.2% | 60.1%32.9% |
Long-Term Price Volatility Vs. Market
How volatile is China Petroleum & Chemical's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
We Think China Petroleum & Chemical (HKG:386) Is Taking Some Risk With Its Debt1 month ago | Simply Wall St
There May Be Reason For Hope In China Petroleum & Chemical's (HKG:386) Disappointing Earnings1 month ago | Simply Wall St
There Are Reasons To Feel Uneasy About China Petroleum & Chemical's (HKG:386) Returns On CapitalValuation
Is China Petroleum & Chemical undervalued compared to its fair value and its price relative to the market?
5.87x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 386 (HK$4.12) is trading above our estimate of fair value (HK$3.39)
Significantly Below Fair Value: 386 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 386 is good value based on its PE Ratio (5.9x) compared to the HK Oil and Gas industry average (7.6x).
PE vs Market: 386 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: 386 is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: 386 is good value based on its PB Ratio (0.5x) compared to the HK Oil and Gas industry average (0.7x).
Future Growth
How is China Petroleum & Chemical forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
2.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 386's forecast earnings growth (2.7% per year) is above the savings rate (1.5%).
Earnings vs Market: 386's earnings (2.7% per year) are forecast to grow slower than the Hong Kong market (17.3% per year).
High Growth Earnings: 386's earnings are forecast to grow, but not significantly.
Revenue vs Market: 386's revenue (2.8% per year) is forecast to grow slower than the Hong Kong market (12.7% per year).
High Growth Revenue: 386's revenue (2.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 386's Return on Equity is forecast to be low in 3 years time (8%).
Past Performance
How has China Petroleum & Chemical performed over the past 5 years?
-1.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 386 has high quality earnings.
Growing Profit Margin: 386's current net profit margins (3.3%) are higher than last year (0.8%).
Past Earnings Growth Analysis
Earnings Trend: 386's earnings have declined by 1.3% per year over the past 5 years.
Accelerating Growth: 386's earnings growth over the past year (210.9%) exceeds its 5-year average (-1.3% per year).
Earnings vs Industry: 386 earnings growth over the past year (210.9%) exceeded the Oil and Gas industry -3.6%.
Return on Equity
High ROE: 386's Return on Equity (9.5%) is considered low.
Financial Health
How is China Petroleum & Chemical's financial position?
Financial Position Analysis
Short Term Liabilities: 386's short term assets (CN¥520.0B) do not cover its short term liabilities (CN¥559.7B).
Long Term Liabilities: 386's short term assets (CN¥520.0B) exceed its long term liabilities (CN¥332.7B).
Debt to Equity History and Analysis
Debt Level: 386's debt to equity ratio (18.6%) is considered satisfactory.
Reducing Debt: 386's debt to equity ratio has reduced from 30.8% to 18.6% over the past 5 years.
Debt Coverage: 386's debt is well covered by operating cash flow (129.7%).
Interest Coverage: 386 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is China Petroleum & Chemical current dividend yield, its reliability and sustainability?
3.79%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 386's dividend (3.79%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.91%).
High Dividend: 386's dividend (3.79%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.05%).
Stability and Growth of Payments
Stable Dividend: 386's dividend payments have been volatile in the past 10 years.
Growing Dividend: 386's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.2%), 386's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 386's dividends in 3 years are forecast to be covered by earnings (65.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Yongsheng Ma (59 yo)
2.58yrs
Tenure
CN¥1,013,000
Compensation
Mr. Yongsheng Ma is the President of China Petroleum & Chemical Corp since October 30, 2018. He was a Senior Vice President of China Petroleum & Chemical Corp. from December 28, 2015 to October 30, 2018 an...
CEO Compensation Analysis
Compensation vs Market: Yongsheng's total compensation ($USD156.48K) is below average for companies of similar size in the Hong Kong market ($USD847.04K).
Compensation vs Earnings: Yongsheng's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 386's management team is considered experienced (2.6 years average tenure).
Board Members
Experienced Board: 386's board of directors are considered experienced (3 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
China Petroleum & Chemical Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Petroleum & Chemical Corporation
- Ticker: 386
- Exchange: SEHK
- Founded: 2000
- Industry: Integrated Oil and Gas
- Sector: Energy
- Market Cap: HK$594.972b
- Shares outstanding: 121.07b
- Website: https://www.sinopec.com
Number of Employees
Location
- China Petroleum & Chemical Corporation
- No. 22 Chaoyangmen North Street
- Chaoyang District
- Beijing
- 100728
- China
Listings
Biography
China Petroleum & Chemical Corporation, an energy and chemical company, engages in oil and gas, and chemical operations in the People’s Republic of China. It operates through five segments: Exploration and...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/06 10:15 |
| End of Day Share Price | 2021/05/06 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.