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China Petroleum & Chemical

SEHK:386
Snowflake Description

Good value with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
386
SEHK
HK$736B
Market Cap
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Last updated 2019/05/24 12:37
Company description

China Petroleum & Chemical Corporation, an energy and chemical company, engages in oil and gas, and chemical operations in the People’s Republic of China. The last earnings update was 25 days ago. More info.

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386 Share Price and Events
7 Day Returns
-0.7%
SEHK:386
-2.2%
HK Oil and Gas
-4.1%
HK Market
1 Year Returns
-23.2%
SEHK:386
-22.7%
HK Oil and Gas
-17.2%
HK Market
386 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Petroleum & Chemical (386) -0.7% -6.5% -17.6% -23.2% 6.2% -20.1%
HK Oil and Gas -2.2% -10.7% -14.2% -22.7% 2% -36.2%
HK Market -4.1% -10.7% -8.4% -17.2% 20% 5.5%
1 Year Return vs Industry and Market
  • 386 underperformed the Market in Hong Kong which returned -17.2% over the past year.
Price Volatility
386
Industry
5yr Volatility vs Market

386 Value

 Is China Petroleum & Chemical 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 China Petroleum & Chemical 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 China Petroleum & Chemical.

SEHK:386 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
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:386
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.903 (1 + (1- 25%) (56.75%)) 		1.193
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.193 * 5.96%) 		9.11%

Discounted Cash Flow Calculation for SEHK:386 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Petroleum & Chemical 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:386 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.11%)
2019 110,143.65 Analyst x2 100,946.61
2020 85,113.42 Analyst x3 71,492.85
2021 83,655.29 Analyst x5 64,400.66
2022 112,221.58 Analyst x1 79,178.19
2023 113,273.76 Est @ 0.94% 73,247.16
2024 114,697.86 Est @ 1.26% 67,974.98
2025 116,396.48 Est @ 1.48% 63,221.66
2026 118,302.55 Est @ 1.64% 58,891.48
2027 120,369.52 Est @ 1.75% 54,917.05
2028 122,564.99 Est @ 1.82% 51,249.47
Present value of next 10 years cash flows CN¥685,520.12
SEHK:386 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥122,564.99 × (1 + 2%) ÷ (9.11% – 2%) 		CN¥1,758,914.57
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥1,758,914.57 ÷ (1 + 9.11%)10 		CN¥735,474.66
SEHK:386 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥685,520.12 + CN¥735,474.66 		CN¥1,420,994.78
Equity Value per Share
(CNY)		 = Total value / Shares Outstanding
= CN¥1,420,994.78 / 121,071.21 		CN¥11.74
SEHK:386 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:386) 		1.136
Value per Share
(HKD)		 = Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥11.74 x 1.136 		HK$13.33
Value per share (HKD) From above. HK$13.33
Current discount Discount to share price of HK$5.62
= -1 x (HK$5.62 - HK$13.33) / HK$13.33 		57.8%

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

Current Discount
Amount off the current price China Petroleum & Chemical is available for.
Intrinsic value
>50%
Share price is HK$5.62 vs Future cash flow value of HK$13.33
Current Discount Checks
For China Petroleum & Chemical to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Petroleum & Chemical's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Petroleum & Chemical'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 China Petroleum & Chemical's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Petroleum & Chemical's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:386 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.48
SEHK:386 Share Price ** SEHK (2019-05-24) in HKD HK$5.62
SEHK:386 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥4.95
Hong Kong Oil and Gas Industry PE Ratio Median Figure of 28 Publicly-Listed Oil and Gas Companies 10.16x
Hong Kong Market PE Ratio Median Figure of 1,478 Publicly-Listed Companies 10.96x

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

** Primary Listing of China Petroleum & Chemical.

SEHK:386 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:386 Share Price ÷ EPS (both in CNY)

= 4.95 ÷ 0.48

 10.36x

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

  • China Petroleum & Chemical is overvalued based on earnings compared to the HK Oil and Gas industry average.
  • China Petroleum & Chemical is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Petroleum & Chemical's expected growth come at a high price?
Raw Data
SEHK:386 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts		 4.7%per year
Hong Kong Oil and Gas Industry PEG Ratio Median Figure of 11 Publicly-Listed Oil and Gas Companies 0.76x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.77x

*Line of best fit is calculated by linear regression .

SEHK:386 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.36x ÷ 4.7%

 2.22x

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

  • China Petroleum & Chemical is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on China Petroleum & Chemical's assets?
Raw Data
SEHK:386 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥6.10
SEHK:386 Share Price * SEHK (2019-05-24) in HKD HK$5.62
SEHK:386 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥4.95
Hong Kong Oil and Gas Industry PB Ratio Median Figure of 45 Publicly-Listed Oil and Gas Companies 0.89x
Hong Kong Market PB Ratio Median Figure of 2,157 Publicly-Listed Companies 0.94x
SEHK:386 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:386 Share Price ÷ Book Value per Share (both in CNY)

= 4.95 ÷ 6.10

 0.81x

* Primary Listing of China Petroleum & Chemical.

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

  • China Petroleum & Chemical is good value based on assets compared to the HK Oil and Gas industry average.
Show me more potentially undervalued companies in the Oil and Gas industry
X
Value checks
We assess China Petroleum & Chemical'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 Oil and Gas 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 Oil and Gas industry average (and greater than 0)? (1 check)
    5. China Petroleum & Chemical 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.

386 Future Performance

 How is China Petroleum & Chemical expected to perform in the next 1 to 3 years based on estimates from 18 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
4.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Petroleum & Chemical expected to grow at an attractive rate?
  • China Petroleum & Chemical's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Petroleum & Chemical's earnings growth is positive but not above the Hong Kong market average.
  • China Petroleum & Chemical's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:386 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:386 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 4.7%
SEHK:386 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 3%
Hong Kong Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 6.6%
Hong Kong Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.6%
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:386 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:386 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,394,267 224,644 76,478 1
2022-12-31 3,340,512 215,431 78,028 2
2021-12-31 3,055,505 207,017 70,160 14
2020-12-31 2,953,545 224,205 67,869 18
2019-12-31 2,922,991 184,857 65,131 13
SEHK:386 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 2,986,444 149,207 57,780
2018-12-31 2,890,116 175,868 61,618
2018-09-30 2,687,415 217,661 71,995
2018-06-30 2,493,815 201,708 65,715
2018-03-31 2,398,466 189,711 53,351
2017-12-31 2,359,400 190,935 51,244
2017-09-30 2,311,012 194,036 55,969
2017-06-30 2,216,619 199,278 54,668
2017-03-31 2,098,126 193,534 57,203
2016-12-31 1,930,002 214,543 46,672
2016-09-30 1,845,390 181,201 35,544
2016-06-30 1,857,490 174,757 27,008

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Petroleum & Chemical's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
  • China Petroleum & Chemical's revenue is expected to grow by 3% 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:386 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from China Petroleum & Chemical Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:386 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.63 0.63 0.63 1.00
2022-12-31 0.62 0.64 0.60 2.00
2021-12-31 0.58 0.64 0.49 14.00
2020-12-31 0.57 0.64 0.41 19.00
2019-12-31 0.54 0.61 0.42 18.00
SEHK:386 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.48
2018-12-31 0.51
2018-09-30 0.60
2018-06-30 0.54
2018-03-31 0.44
2017-12-31 0.42
2017-09-30 0.46
2017-06-30 0.45
2017-03-31 0.47
2016-12-31 0.39
2016-09-30 0.29
2016-06-30 0.22

*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.
  • China Petroleum & Chemical is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Petroleum & Chemical'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.
China Petroleum & Chemical has a total score of 1/6, 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.

386 Past Performance

  How has China Petroleum & Chemical 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 China Petroleum & Chemical's growth in the last year to its industry (Oil and Gas).
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.
  • China Petroleum & Chemical's year on year earnings growth rate has been positive over the past 5 years.
  • China Petroleum & Chemical's 1-year earnings growth exceeds its 5-year average (8.3% vs 5.2%)
  • China Petroleum & Chemical's earnings growth has not exceeded the HK Oil and Gas industry average in the past year (8.3% vs 10.8%).
Earnings and Revenue History
China Petroleum & Chemical'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 China Petroleum & Chemical Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:386 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,986,444.00 57,780.00 149,787.00
2018-12-31 2,890,116.00 61,618.00 154,107.00
2018-09-30 2,687,415.00 71,995.00 156,221.00
2018-06-30 2,493,815.00 65,715.00 157,949.00
2018-03-31 2,398,466.00 53,351.00 154,394.00
2017-12-31 2,359,400.00 51,244.00 150,916.00
2017-09-30 2,311,012.00 55,969.00 143,545.00
2017-06-30 2,216,619.00 54,668.00 138,434.00
2017-03-31 2,098,126.00 57,203.00 139,100.00
2016-12-31 1,930,002.00 46,672.00 139,282.00
2016-09-30 1,845,390.00 35,544.00 139,257.00
2016-06-30 1,857,490.00 27,008.00 138,432.00
2016-03-31 1,955,221.00 37,008.00 137,063.00
2015-12-31 2,019,401.00 32,512.00 136,569.00
2015-09-30 2,247,560.00 21,743.00 134,760.00
2015-06-30 2,510,211.00 39,346.00 135,521.00
2015-03-31 2,662,428.00 34,517.00 136,208.00
2014-12-31 2,826,892.00 46,639.00 137,037.00
2014-09-30 2,855,423.00 65,630.00 139,095.00
2014-06-30 2,820,627.00 68,394.00 139,417.00
2014-03-31 2,825,193.00 63,576.00 138,242.00
2013-12-31 2,879,699.00 66,132.00 137,854.00
2013-09-30 2,900,694.00 73,350.00 134,303.00
2013-06-30 2,852,708.00 69,657.00 133,409.00
2013-03-31 2,809,742.00 67,150.00 130,724.00
2012-12-31 2,785,536.00 63,879.00 128,474.00
2012-09-30 2,654,910.00 54,658.00 125,502.00
2012-06-30 2,620,046.00 56,554.00 124,756.00

*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.
  • China Petroleum & Chemical has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Petroleum & Chemical used its assets less efficiently than the HK Oil and Gas industry average last year based on Return on Assets.
  • China Petroleum & Chemical's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Petroleum & Chemical'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 Oil and Gas 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.
China Petroleum & Chemical 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.

386 Health

 How is China Petroleum & Chemical'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 China Petroleum & Chemical's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Petroleum & Chemical's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • China Petroleum & Chemical's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Petroleum & Chemical'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.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x 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 China Petroleum & Chemical Company Filings, last reported 1 month ago.

SEHK:386 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 880,983.00 367,610.00 185,258.00
2018-12-31 856,535.00 154,654.00 192,747.00
2018-09-30 861,616.00 197,155.00 236,356.00
2018-06-30 856,178.00 188,641.00 212,422.00
2018-03-31 876,150.00 187,181.00 212,807.00
2017-12-31 852,890.00 179,773.00 216,200.00
2017-09-30 844,218.00 184,118.00 161,903.00
2017-06-30 844,591.00 182,704.00 160,822.00
2017-03-31 852,345.00 189,243.00 135,050.00
2016-12-31 831,235.00 192,265.00 142,497.00
2016-09-30 812,183.00 203,712.00 86,383.00
2016-06-30 808,634.00 225,215.00 76,986.00
2016-03-31 795,118.00 244,837.00 63,889.00
2015-12-31 788,161.00 255,192.00 69,666.00
2015-09-30 784,088.00 250,526.00 57,173.00
2015-06-30 786,957.00 276,113.00 74,203.00
2015-03-31 772,563.00 302,165.00 73,946.00
2014-12-31 645,577.00 329,080.00 10,100.00
2014-09-30 649,433.00 339,790.00 20,919.00
2014-06-30 641,543.00 335,251.00 14,346.00
2014-03-31 639,451.00 341,115.00 20,771.00
2013-12-31 621,626.00 309,460.00 15,101.00
2013-09-30 597,349.00 325,270.00 12,096.00
2013-06-30 584,609.00 309,214.00 11,385.00
2013-03-31 585,357.00 310,128.00 14,788.00
2012-12-31 548,036.00 278,098.00 10,864.00
2012-09-30 527,537.00 277,400.00 14,855.00
2012-06-30 516,785.00 303,746.00 13,960.00
  • China Petroleum & Chemical's level of debt (41.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (53.3% vs 41.7% today).
  • Debt is well covered by operating cash flow (40.6%, greater than 20% of total debt).
  • China Petroleum & Chemical earns more interest than it pays, coverage of interest payments is not a concern.
Show me more healthy companies in the Oil and Gas industry
X
Financial health checks
We assess China Petroleum & Chemical'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. China Petroleum & Chemical has a total score of 4/6, 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.

386 Dividends

 What is China Petroleum & Chemical'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
8.49%
Current annual income from China Petroleum & Chemical dividends. Estimated to be 8.41% next year.
If you bought HK$2,000 of China Petroleum & Chemical shares you are expected to receive HK$170 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?
  • China Petroleum & Chemical's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.1%).
  • China Petroleum & Chemical's dividend is above the markets top 25% of dividend payers in Hong Kong (5.84%).
Upcoming dividend payment

Purchase China Petroleum & Chemical before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:386 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 18 Analyst Estimates (S&P Global) See Below
Hong Kong Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 5.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 967 Stocks 3.7%
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 5.8%

Industry and Market average data is calculated daily.

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

SEHK:386 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.47 1.00
2022-12-31 0.43 2.00
2021-12-31 0.41 14.00
2020-12-31 0.41 20.00
2019-12-31 0.42 16.00
SEHK:386 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-25 0.420 8.092
2018-04-27 0.500 8.408
2018-03-26 0.500 8.550
2017-07-11 0.249 4.974
2016-04-20 0.150 2.988
2016-03-29 0.150 3.507
2015-04-10 0.200 4.566
2015-03-23 0.200 4.024
2014-03-24 0.240 4.422
2013-09-05 0.290 5.850
2013-04-11 0.231 4.931
2012-03-26 0.231 4.688
2011-08-29 0.177 3.447
2011-03-28 0.162 3.352
2010-08-23 0.146 3.021
2010-04-30 0.139 3.343
2010-03-29 0.139 3.169

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

  • China Petroleum & Chemical has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but China Petroleum & Chemical only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of China Petroleum & Chemical's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
Show me more dividend paying companies in the Oil and Gas industry
X
Income/ dividend checks
We assess China Petroleum & Chemical'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 China Petroleum & Chemical afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. China Petroleum & Chemical has a total score of 4/6, see the detailed checks below.


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

386 Management

 What is the CEO of China Petroleum & Chemical'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
Yongsheng Ma
COMPENSATION CN¥0
AGE 57
TENURE AS CEO 0.6 years
CEO Bio

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 and has been its Executive Director since February 25, 2016. In April 2002, Mr. Ma was appointed as Chief Geologist of Sinopec Southern Exploration and Production Branch. In April 2006, he was appointed as Executive Deputy Manager (presiding over the work), Chief Geologist of Sinopec Southern Exploration and Production Branch. In January 2007, he was appointed as Manager and Party Secretary of Sinopec Southern Exploration and Production Branch. In March 2007, he served as General Manager and Deputy Party Secretary of Sinopec Exploration Branch. In May 2007, he was appointed as Deputy Commander of Sichuan-East China Gas Transmission Construction Project Headquarter of Sinopec Corp., General Manager and Deputy Party Secretary of Sinopec Exploration Branch. In May 2008, he was appointed as Deputy Director General of Exploration and Production Department of Sinopec Corp. (Director General Level) and Deputy Commander of Sichuan-East China Gas Transmission Construction Project Headquarter. Since July 2010, he served as Deputy Chief Geologist of Sinopec Corp. Since August 2013, he was appointed as Chief Geologist of Sinopec Corp. Since December 2015, he served as Vice President of China Petrochemical Corporation. Mr. Ma is a professor level senior engineer with a Ph.D. degree and an academician of the Chinese Academy of Engineering.

CEO Compensation
  • Insufficient data for Yongsheng to compare compensation growth.
  • Yongsheng's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Petroleum & Chemical management team in years:

1.3
Average Tenure
55
Average Age
  • The average tenure for the China Petroleum & Chemical management team is less than 2 years, this suggests a new team.
Management Team

Yongsheng Ma

TITLE
President & Executive Director
AGE
57
TENURE
0.6 yrs

Dehua Wang

TITLE
Chief Financial Officer
AGE
52
TENURE
2.7 yrs

Dianwu Lei

TITLE
Senior Vice President
AGE
55
TENURE
0.6 yrs

Yiqun Ling

TITLE
Senior VP & Executive Director
AGE
55
TENURE
1.3 yrs

Wensheng Huang

TITLE
VP & Secretary to the Board of Directors
AGE
51
TENURE
7 yrs

Ge Chen

TITLE
Senior Vice President
AGE
55
TENURE
0.6 yrs

Zhongyun Liu

TITLE
Senior VP & Executive Director
AGE
54
TENURE
1.3 yrs

Rifeng Zhao

TITLE
Vice President
AGE
55
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the China Petroleum & Chemical board of directors in years:

1.9
Average Tenure
56
Average Age
  • The average tenure for the China Petroleum & Chemical board of directors is less than 3 years, this suggests a new board.
Board of Directors

Houliang Dai

TITLE
Chairman of the Board
COMPENSATION
CN¥840K
AGE
54

Yongsheng Ma

TITLE
President & Executive Director
AGE
57
TENURE
3.3 yrs

Yiqun Ling

TITLE
Senior VP & Executive Director
AGE
55
TENURE
1 yrs

Zhongyun Liu

TITLE
Senior VP & Executive Director
AGE
54
TENURE
1 yrs

Gang Fan

TITLE
Independent Non Executive Director
COMPENSATION
CN¥300K
AGE
63
TENURE
4 yrs

Zhao Dong

TITLE
Chairman of the Board of Supervisors
AGE
47
TENURE
1.9 yrs

Johnny Ng

TITLE
Independent Director
AGE
57
TENURE
1 yrs

Min Tang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥300K
AGE
64
TENURE
4 yrs

Yunpeng Li

TITLE
Non-Executive Director
AGE
59
TENURE
1.9 yrs

Yong Li

TITLE
Director
AGE
55
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
14. May 19 Sell Schroder Investment Management (Hong Kong) Limited Company 08. May 19 08. May 19 -14,992,000 HK$5.79 HK$-86,833,617
13. Mar 19 Sell Citigroup Inc.,Banking and Securities Investments Company 08. Mar 19 08. Mar 19 -8,873,559 HK$6.47 HK$-57,402,170
22. Jan 19 Buy Schroder Investment Management Limited Company 17. Jan 19 17. Jan 19 23,505,102 HK$6.17 HK$145,026,542
18. Sep 18 Sell Schroder Investment Management Limited Company 14. Sep 18 14. Sep 18 -26,242,000 HK$7.58 HK$-198,977,266
30. May 18 Buy BlackRock, Inc. Company 25. May 18 25. May 18 1,680,000 HK$7.38 HK$12,393,359
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Management checks
We assess China Petroleum & Chemical'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. China Petroleum & Chemical 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.

386 News

Simply Wall St News

Are China Petroleum & Chemical Corporation's (HKG:386) Interest Costs Too High?

Today we will look at China Petroleum & Chemical’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … 386's debt levels surged from CN¥187b to CN¥368b over the last 12 months – this includes long-term debt. … You should continue to research China Petroleum & Chemical to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for 386’s future growth?

Simply Wall St - –

What Should Investors Know About The Future Of China Petroleum & Chemical Corporation's (HKG:386)?

Since China Petroleum & Chemical Corporation (HKG:386) released its earnings in December 2018,. … with earnings expected to grow by 1.7% in the upcoming year … the higher past 5-year average growth rate of 2.6%

Simply Wall St - –

Do China Petroleum & Chemical's (HKG:386) Earnings Warrant Your Attention?

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in China Petroleum & Chemical (HKG:386). … China Petroleum & Chemical's Earnings Per Share Are Growing. … While we note China Petroleum & Chemical's EBIT margins were flat over the last year, revenue grew by a solid 22% to CN¥2.9t.

Simply Wall St - –

How Do Analysts See China Petroleum & Chemical Corporation (HKG:386) Performing In The Next Couple Of Years?

China Petroleum & Chemical Corporation's (HKG:386) most recent earnings announcement in December 2018a

Simply Wall St - –

Introducing China Petroleum & Chemical (HKG:386), A Stock That Climbed 26% In The Last Three Years

For example, the China Petroleum & Chemical Corporation (HKG:386) share price return of 26% over three years lags the market return in the same period. … China Petroleum & Chemical was able to grow its EPS at 24% per year over three years, sending the share price higher. … We know that China Petroleum & Chemical has improved its bottom line lately, but is it going to grow revenue

Simply Wall St - –

Is China Petroleum & Chemical Corporation (HKG:386) Investing Effectively In Its Business?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St - –

What Kind Of Shareholder Owns Most China Petroleum & Chemical Corporation (HKG:386) Stock?

A look at the shareholders of China Petroleum & Chemical Corporation (HKG:386) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … View our latest analysis for China Petroleum & Chemical

Simply Wall St - –

Why We Think China Petroleum & Chemical Corporation (HKG:386) Could Be Worth Looking At

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In the case of China Petroleum & Chemical Corporation (HKG:386), there's

Simply Wall St - –

Is China Petroleum & Chemical Corporation's (HKG:386) 11% Better Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand China Petroleum & Chemical Corporation (HKG:386). … Our data shows China Petroleum & Chemical has a return on equity of 11% for the last year.

Simply Wall St - –

China Petroleum & Chemical Corporation (HKG:386): What Can We Expect In The Future?

In September 2018, China Petroleum & Chemical Corporation (HKG:386) released its earnings update. … with earnings expected to decline by -5.3% in the upcoming year

Simply Wall St - –

386 Company Info

Description

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 Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others. The company explores for and develops oil fields; produces crude oil and natural gas; processes and purifies crude oil; and manufactures and sells petroleum products. It also owns and operates oil depots and service stations; and distributes and sells refined petroleum products, including gasoline and diesel through wholesale and retail sales networks. In addition, the company manufactures and sells petrochemical and derivative petrochemical products; and other chemical products, such as basic organic chemicals, synthetic resins, synthetic fiber monomers and polymers, synthetic fibers, synthetic rubber, and chemical fertilizers. Further, it is involved in the pipeline transportation and sale of petroleum and natural gas; production, sale, storage, and transportation of refinery and coal chemical products; import and export of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; research, development, and application of technologies and information; production and sale of catalyst products, lubricant base oil, polyester chips and fibers, plastics, and intermediate petrochemical products; research, development, production, and sale of ethylene and downstream by-products; and coal chemical industry investment management activities. The company was founded in 2000 and is headquartered in Beijing, the People’s Republic of China. China Petroleum & Chemical Corporation is a subsidiary of China Petrochemical Corporation.

Details
Name: China Petroleum & Chemical Corporation
386
Exchange: SEHK
Founded: 2000
HK$735,744,502,201
121,071,209,646
Website: http://www.sinopec.com
Address: China Petroleum & Chemical Corporation
No. 22 Chaoyangmen North Street,
Chaoyang District,
Beijing,
100728,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 386 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 19. Oct 2000
OTCPK SNPM.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 19. Oct 2000
DB CHU Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 19. Oct 2000
SHSC 386 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 19. Oct 2000
SZSC 386 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 19. Oct 2000
NYSE SNP ADS EACH REP 100 'H'SHS SPON New York Stock Exchange US USD 18. Oct 2000
SHSE 600028 Domestic Shares Shanghai Stock Exchange CN CNY 08. Aug 2001
DB CHUA ADS EACH REP 100 'H'SHS SPON Deutsche Boerse AG DE EUR 18. Oct 2000
LSE SNP ADS EACH REP 100 'H'SHS SPON London Stock Exchange GB USD 18. Oct 2000
XSSC 600028 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 08. Aug 2001
BMV SNP N ADS EACH REP 100 'H'SHS SPON Bolsa Mexicana de Valores MX MXN 18. Oct 2000
Number of employees
Current staff
Staff numbers
423,543
China Petroleum & Chemical employees.
Industry
Integrated Oil and Gas
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 12:37
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/23
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
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.

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