SEHK:386

Stock Analysis Report

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

Fundamentals

Excellent balance sheet established 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


Market Performance


7 Day Return

2.0%

386

3.1%

HK Oil and Gas

2.2%

HK Market


1 Year Return

-31.1%

386

-25.5%

HK Oil and Gas

-1.3%

HK Market

Return vs Industry: 386 underperformed the Hong Kong Oil and Gas industry which returned -25.5% over the past year.

Return vs Market: 386 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

386IndustryMarket
7 Day2.0%3.1%2.2%
30 Day-5.3%-2.7%-2.9%
90 Day-9.8%-6.0%-5.8%
1 Year-25.2%-31.1%-21.1%-25.5%2.3%-1.3%
3 Year2.5%-18.0%2.0%-12.5%15.6%3.9%
5 Year-3.8%-28.4%-26.6%-39.7%20.1%0.06%

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 based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 386 (HK$4.69) is trading below our estimate of fair value (HK$6.61)

Significantly Undervalued: 386 is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: 386 is poor value based on its PE Ratio (10x) compared to the Oil and Gas industry average (7x).

PE vs Market: 386 is good value based on its PE Ratio (10x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 386 is poor value based on its PEG Ratio (2.1x)


Price Based on Value of Assets

PB vs Industry: 386 is good value based on its PB Ratio (0.7x) compared to the HK Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is China Petroleum & Chemical expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 386's forecast earnings growth (4.8% per year) is above the savings rate (2%).

Earnings vs Market: 386's earnings (4.8% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 386's earnings are forecast to grow, but not significantly.

Revenue vs Market: 386's revenue (2.9% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 386's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 386's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has China Petroleum & Chemical performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 386's earnings have grown by 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 (-21.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (12.6%).


Return on Equity

High ROE: 386's Return on Equity (7.5%) is considered low.


Return on Assets

ROA vs Industry: 386's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: 386 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Petroleum & Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: 386's short term assets (HK$544.9B) do not cover its short term liabilities (HK$605.4B)

Long Term Liabilities: 386's short term assets (HK$544.9B) exceeds its long term liabilities (HK$352.2B)


Debt to Equity History and Analysis

Debt Level: 386's debt to equity ratio (22.2%) is considered satisfactory

Reducing Debt: 386's debt to equity ratio has reduced from 52.3% to 22.2% over the past 5 years.

Debt Coverage: 386's debt is well covered by operating cash flow (71.4%).

Interest Coverage: 386's interest payments on its debt are well covered by EBIT (22.7x coverage).


Balance Sheet

Inventory Level: 386 has a high level of physical assets or inventory.

Debt Coverage by Assets: 386's debt is covered by short term assets (assets are 2.834920x debt).


Next Steps

Dividend

What is China Petroleum & Chemical's current dividend yield, its reliability and sustainability?

8.00%

Expected Dividend Yield


Dividend Yield vs Market

company9.0%marketbottom25%2.3%markettop25%6.3%industryaverage6.1%forecastin3Years8.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 386's dividend (8.97%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 386's dividend (8.97%) is in the top 25% of dividend payers in the Hong Kong market (6.35%)

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: At its current payout ratio (89.4%), 386's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 386's dividends in 3 years are forecast to be covered by earnings (63.7% payout ratio).


Next Steps

Management

What is the CEO of China Petroleum & Chemical's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Yongsheng Ma (58yo)

1yrs

Tenure

0

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 ...


Management Age and Tenure

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 Age and Tenure

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: 386's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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Ownership Breakdown


Management Team

  • Ge Chen (56yo)

    Senior Vice President

    • Tenure: 1yrs
  • Dianwu Lei (56yo)

    Senior Vice President

    • Tenure: 1yrs
  • Yiqun Ling (56yo)

    Senior VP & Executive Director

    • Tenure: 1.4yrs
  • Wensheng Huang (52yo)

    VP & Secretary to the Board of Directors

    • Tenure: 7.4yrs
  • Dehua Wang (53yo)

    Chief Financial Officer

    • Tenure: 3.1yrs
  • Yongsheng Ma (58yo)

    President & Executive Director

    • Tenure: 1yrs
  • Zhongyun Liu (55yo)

    Senior VP & Executive Director

    • Tenure: 1.4yrs
  • Rifeng Zhao (56yo)

    Vice President

    • Tenure: 1.7yrs

Board Members

  • Yunpeng Li (60yo)

    Non-Executive Director

    • Tenure: 2.3yrs
  • Houliang Dai (55yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥840.00k
  • Gang Fan (64yo)

    Independent Non Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥300.00k
  • Yong Li (56yo)

    Director

    • Tenure: 1.4yrs
  • Yiqun Ling (56yo)

    Senior VP & Executive Director

    • Tenure: 1.4yrs
  • Min Tang (65yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥300.00k
  • Yongsheng Ma (58yo)

    President & Executive Director

    • Tenure: 1yrs
  • Zhongyun Liu (55yo)

    Senior VP & Executive Director

    • Tenure: 1.4yrs
  • Zhao Dong (48yo)

    Chairman of the Board of Supervisors

    • Tenure: 2.3yrs
  • Johnny Ng (58yo)

    Independent Director

    • Tenure: 1.4yrs

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$656.859b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHUADB (Deutsche Boerse AG)ADS EACH REP 100 'H'SHS SPONDEEUROct 2000
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
SNP NBMV (Bolsa Mexicana de Valores)ADS EACH REP 100 'H'SHS SPONMXMXNOct 2000
SNPM.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 2000
CHUDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2000
386SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 12:39
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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