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.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.2%
386
-3.4%
HK Oil and Gas
-3.7%
HK Market
1 Year Return
-35.8%
386
-33.9%
HK Oil and Gas
-10.0%
HK Market
Return vs Industry: 386 underperformed the Hong Kong Oil and Gas industry which returned -33.9% over the past year.
Return vs Market: 386 underperformed the Hong Kong Market which returned -10% over the past year.
Shareholder returns
| 386 | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | -3.4% | -3.7% |
| 30 Day | -6.5% | -2.5% | -1.5% |
| 90 Day | -10.4% | -13.8% | -8.8% |
| 1 Year | -30.3%-35.8% | -29.9%-33.9% | -6.9%-10.0% |
| 3 Year | -29.7%-43.8% | -27.6%-38.2% | -3.9%-13.7% |
| 5 Year | -27.6%-46.1% | -47.8%-57.1% | -16.3%-29.2% |
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
Is China Petroleum & Chemical (HKG:386) Using Too Much Debt?1 month ago | Simply Wall St
Tread With Caution Around China Petroleum & Chemical Corporation's (HKG:386) 8.5% Dividend Yield2 months ago | Simply Wall St
Did Changing Sentiment Drive China Petroleum & Chemical's (HKG:386) Share Price Down By 43%?Valuation
Is China Petroleum & Chemical undervalued compared to its fair value and its price relative to the market?
17.54x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 386 (HK$3.6) is trading above our estimate of fair value (HK$1.61)
Significantly Below Fair Value: 386 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 386 is poor value based on its PE Ratio (17.5x) compared to the Oil and Gas industry average (5.8x).
PE vs Market: 386 is poor value based on its PE Ratio (17.5x) compared to the Hong Kong market (9.3x).
Price to Earnings Growth Ratio
PEG Ratio: 386 is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 386 is good value based on its PB Ratio (0.6x) compared to the HK Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is China Petroleum & Chemical forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
41.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 386's forecast earnings growth (41.6% per year) is above the savings rate (1.6%).
Earnings vs Market: 386's earnings (41.6% per year) are forecast to grow faster than the Hong Kong market (16.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 386's revenue (7.5% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).
High Growth Revenue: 386's revenue (7.5% 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 (7.2%).
Next Steps
Past Performance
How has China Petroleum & Chemical performed over the past 5 years?
9.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 386 has high quality earnings.
Growing Profit Margin: 386's current net profit margins (0.8%) are lower than last year (2%).
Past Earnings Growth Analysis
Earnings Trend: 386's earnings have grown by 9.7% per year over the past 5 years.
Accelerating Growth: 386's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 386 had negative earnings growth (-61.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (1.8%).
Return on Equity
High ROE: 386's Return on Equity (3.8%) is considered low.
Next Steps
Financial Health
How is China Petroleum & Chemical's financial position?
Financial Position Analysis
Short Term Liabilities: 386's short term assets (CN¥496.0B) do not cover its short term liabilities (CN¥639.3B).
Long Term Liabilities: 386's short term assets (CN¥496.0B) exceed its long term liabilities (CN¥321.7B).
Debt to Equity History and Analysis
Debt Level: 386's debt to equity ratio (28.7%) is considered satisfactory.
Reducing Debt: 386's debt to equity ratio has reduced from 39% to 28.7% over the past 5 years.
Debt Coverage: 386's debt is well covered by operating cash flow (41.1%).
Interest Coverage: 386 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is China Petroleum & Chemical's current dividend yield, its reliability and sustainability?
9.31%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 386's dividend (9.31%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.61%).
High Dividend: 386's dividend (9.31%) is in the top 25% of dividend payers in the Hong Kong market (7.3%)
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 increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (163.3%), 386's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 386's dividends in 3 years are forecast to be covered by earnings (83% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Yongsheng Ma (58yo)
1.58yrs
Tenure
CN¥1,563,000
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 ($USD218.04K) is below average for companies of similar size in the Hong Kong market ($USD764.65K).
Compensation vs Earnings: Yongsheng's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Executive Director | 1.58yrs | CN¥1.56m | no data | |
| Senior Vice President | 1.58yrs | CN¥1.60m | no data | |
| Senior Vice President | 1.58yrs | CN¥1.59m | no data | |
| VP & Secretary to the Board of Directors | 8yrs | CN¥1.50m | no data | |
| Vice President | 2.25yrs | CN¥1.46m | no data | |
| CFO & Head of Accounting Institution | 0.33yr | no data | no data | |
| Senior VP & Executive Director | 2yrs | no data | 0.000010% CN¥52.3k | |
| Senior Vice President | 0.17yr | no data | no data |
1.6yrs
Average Tenure
56yo
Average Age
Experienced Management: 386's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Executive Director | 1.58yrs | CN¥1.56m | no data | |
| Senior VP & Executive Director | 2yrs | no data | 0.000010% CN¥52.3k | |
| Independent Non Executive Director | 5yrs | CN¥350.00k | no data | |
| Non-Executive Director | 2yrs | no data | no data | |
| Independent Director | 2yrs | CN¥350.00k | no data | |
| Non-Executive Director | 1.58yrs | no data | no data | |
| Independent Non-Executive Director | 5yrs | CN¥350.00k | no data | |
| Chairman of the Board of Supervisors | 2.92yrs | no data | no data | |
| Independent Director | 2yrs | CN¥350.00k | no data | |
| Chairman of the Board | 0.17yr | no data | no data |
2.0yrs
Average Tenure
56.5yo
Average Age
Experienced Board: 386's board of directors are not considered experienced ( 2 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.
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$523.277b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SNP | NYSE (New York Stock Exchange) | SPON ADR H SHS | US | USD | Oct 2000 | |
| SNP | LSE (London Stock Exchange) | SPON ADR H SHS | GB | USD | Oct 2000 | |
| CHUA | DB (Deutsche Boerse AG) | SPON ADR H SHS | DE | EUR | Oct 2000 | |
| SNP N | BMV (Bolsa Mexicana de Valores) | SPON ADR H SHS | MX | MXN | Oct 2000 | |
| SNPM.F | OTCPK (Pink Sheets LLC) | Yes | Foreign Shares-Foreign Listed | US | USD | Oct 2000 |
| 386 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Oct 2000 |
| CHU | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Oct 2000 |
| 386 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Oct 2000 |
| 386 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Oct 2000 |
| 600028 | SHSE (Shanghai Stock Exchange) | Domestic Shares | CN | CNY | Aug 2001 | |
| 600028 | XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect) | Domestic Shares | CN | CNY | Aug 2001 | |
| SNP | BASE (Buenos Aires Stock Exchange) | EACH CEDEAR REP 0.333 ADR | AR | ARS | Aug 2007 |
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 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, petrochemical, 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 byproducts; 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/28 12:46 |
| End of Day Share Price | 2020/05/28 00:00 |
| Earnings | 2020/03/31 |
| 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.