SEHK:386

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China Petroleum & Chemical

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.


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

-1.9%

386

0.6%

HK Oil and Gas

5.0%

HK Market


1 Year Return

-30.8%

386

-29.6%

HK Oil and Gas

-5.3%

HK Market

Return vs Industry: 386 underperformed the Hong Kong Oil and Gas industry which returned -28.2% over the past year.

Return vs Market: 386 underperformed the Hong Kong Market which returned -5.2% over the past year.


Shareholder returns

386IndustryMarket
7 Day-1.9%0.6%5.0%
30 Day-3.3%2.2%4.0%
90 Day-10.2%-9.8%-4.0%
1 Year-24.5%-30.8%-24.2%-29.6%-1.9%-5.3%
3 Year-27.4%-45.3%-23.6%-37.0%-0.5%-10.9%
5 Year-22.9%-44.8%-43.2%-54.0%-9.0%-23.5%

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

Valuation

Is China Petroleum & Chemical undervalued compared to its fair value and its price relative to the market?

17.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 386 (HK$3.53) is trading above our estimate of fair value (HK$2.32)

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 (17.1x) compared to the Oil and Gas industry average (6x).

PE vs Market: 386 is poor value based on its PE Ratio (17.1x) compared to the Hong Kong market (9.4x).


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?

41.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 386's forecast earnings growth (41.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 386's earnings (41.3% 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 (7.4% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 386's revenue (7.4% 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 (7.1%).


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?

9.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 386's dividend (9.57%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.44%).

High Dividend: 386's dividend (9.57%) is in the top 25% of dividend payers in the Hong Kong market (7.14%)


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 (83.6% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Yongsheng Ma (58yo)

1.67yrs

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 ($USD219.68K) is below average for companies of similar size in the Hong Kong market ($USD768.24K).

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

NamePositionTenureCompensationOwnership
Yongsheng Ma
President & Executive Director1.67yrsCN¥1.56mno data
Ge Chen
Senior Vice President1.67yrsCN¥1.60mno data
Dianwu Lei
Senior Vice President1.67yrsCN¥1.59mno data
Wensheng Huang
VP & Secretary to the Board of Directors8.08yrsCN¥1.50mno data
Rifeng Zhao
Vice President2.33yrsCN¥1.46mno data
Donghua Shou
CFO & Head of Accounting Institution0.42yrno datano data
Yiqun Ling
Senior VP & Executive Director2.08yrsno data0.000010% CN¥53.2k
Hongbin Liu
Senior Vice President0.25yrno datano data

1.7yrs

Average Tenure

56yo

Average Age

Experienced Management: 386's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yongsheng Ma
President & Executive Director1.67yrsCN¥1.56mno data
Yiqun Ling
Senior VP & Executive Director2.08yrsno data0.000010% CN¥53.2k
Gang Fan
Independent Non Executive Director5.08yrsCN¥350.00kno data
Yong Li
Non-Executive Director2.08yrsno datano data
Hongbin Cai
Independent Director2.08yrsCN¥350.00kno data
Baocai Yu
Non-Executive Director1.67yrsno datano data
Min Tang
Independent Non-Executive Director5.08yrsCN¥350.00kno data
Zhao Dong
Chairman of the Board of Supervisors3yrsno datano data
Kar Ling Ng
Independent Director2.08yrsCN¥350.00kno data
Yuzhuo Zhang
Chairman of the Board0.25yrno datano data

2.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 386's board of directors are not considered experienced ( 2.1 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$532.167b
  • 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
  • Beijing Province
  • 100728
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNPNYSE (New York Stock Exchange)ADS EACH REP 100 'H'SHS SPONUSUSDOct 2000
SNPLSE (London Stock Exchange)ADS EACH REP 100 'H'SHS SPONGBUSDOct 2000
CHUADB (Deutsche Boerse AG)ADS EACH REP 100 'H'SHS SPONDEEUROct 2000
SNP NBMV (Bolsa Mexicana de Valores)ADS EACH REP 100 'H'SHS SPONMXMXNOct 2000
SNPM.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 2000
386SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2000
CHUDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2000
386SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2000
386SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2000
600028SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYAug 2001
600028XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYAug 2001
SNPBASE (Buenos Aires Stock Exchange)EACH CEDEAR REP 0.333 ADRARARSAug 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 products, natural gas, 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; provision of geophysical and drilling services, as well as well testing and measurement services; manufacturing production equipment; 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 12:42
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.