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

-1.7%

SEHK:386

-1.1%

HK Oil and Gas

-0.7%

HK Market


1 Year Return

-35.9%

SEHK:386

-26.6%

HK Oil and Gas

-9.8%

HK Market

386 underperformed the Oil and Gas industry which returned -26.8% over the past year.

386 underperformed the Market in Hong Kong which returned -10.1% over the past year.


Share holder returns

386IndustryMarket
7 Day-1.7%-1.1%-0.7%
30 Day-10.5%-10.4%-9.3%
90 Day-18.4%-15.2%-8.4%
1 Year-30.8%-35.9%-22.5%-26.6%-6.6%-9.8%
3 Year1.5%-17.8%-2.0%-14.6%12.8%1.6%
5 Year-20.6%-40.1%-41.2%-51.4%7.3%-10.5%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

China Petroleum & Chemical is poor value based on expected growth next year.


Price Based on Value of Assets

China Petroleum & Chemical is good value based on assets compared to the HK Oil and Gas industry average.


Next Steps

Future Growth

How is China Petroleum & Chemical expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Petroleum & Chemical's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

China Petroleum & Chemical's earnings are expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

China Petroleum & Chemical's revenue growth is positive but not above the Hong Kong market average.

China Petroleum & Chemical's earnings growth is positive but not above the Hong Kong market average.

China Petroleum & Chemical's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Petroleum & Chemical is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 16.5%).


Return on Equity

China Petroleum & Chemical has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Petroleum & Chemical used its assets less efficiently than the HK Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

China Petroleum & Chemical's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Petroleum & Chemical's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

China Petroleum & Chemical's level of debt (21%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (53.3% vs 21% today).

Debt is well covered by operating cash flow (80.7%, greater than 20% of total debt).

China Petroleum & Chemical earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

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

9.06%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Petroleum & Chemical's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.29%).

China Petroleum & Chemical's dividend is above the markets top 25% of dividend payers in Hong Kong (6.29%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


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?

1.5yrs

Average management tenure


CEO

Yongsheng Ma (58yo)

0.8yrs

Tenure

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

1.5yrs

Average Tenure

56yo

Average Age

The average tenure for the China Petroleum & Chemical management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

57yo

Average Age

The average tenure for the China Petroleum & Chemical board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Ge Chen (56yo)

    Senior Vice President

    • Tenure: 0.8yrs
  • Dianwu Lei (56yo)

    Senior Vice President

    • Tenure: 0.8yrs
  • Yiqun Ling (56yo)

    Senior VP & Executive Director

    • Tenure: 1.5yrs
  • Wensheng Huang (52yo)

    VP & Secretary to the Board of Directors

    • Tenure: 7.3yrs
  • Dehua Wang (53yo)

    Chief Financial Officer

    • Tenure: 2.9yrs
  • Yongsheng Ma (58yo)

    President & Executive Director

    • Tenure: 0.8yrs
  • Zhongyun Liu (55yo)

    Senior VP & Executive Director

    • Tenure: 1.5yrs
  • Rifeng Zhao (56yo)

    Vice President

    • Tenure: 1.5yrs

Board Members

  • Johnny Ng (58yo)

    Independent Director

    • Tenure: 1.3yrs
  • Yongsheng Ma (58yo)

    President & Executive Director

    • Tenure: 3.5yrs
  • Yiqun Ling (56yo)

    Senior VP & Executive Director

    • Tenure: 1.3yrs
  • Yunpeng Li (60yo)

    Non-Executive Director

    • Tenure: 2.2yrs
  • Min Tang (65yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥300.00k
  • Zhongyun Liu (55yo)

    Senior VP & Executive Director

    • Tenure: 1.3yrs
  • Houliang Dai (55yo)

    Chairman of the Board

    • Compensation: CN¥840.00k
  • Yong Li (56yo)

    Director

    • Tenure: 1.3yrs
  • Gang Fan (64yo)

    Independent Non Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥300.00k
  • Zhao Dong (48yo)

    Chairman of the Board of Supervisors

    • Tenure: 2.2yrs

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$647.576b
  • Shares outstanding: 121.07b
  • Website: Click here

Number of Employees


Location

  • China Petroleum & Chemical Corporation
  • No. 22 Chaoyangmen North Street
  • Chaoyang District
  • Beijing
  • 100728
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNPM.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 2000
386SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2000
386SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2000
386SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2000
CHUDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 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
CHUADB (Deutsche Boerse AG)ADS EACH REP 100 'H'SHS SPONDEEUROct 2000
600028SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYAug 2001
600028XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYAug 2001
SNPNYSE (New York Stock Exchange)ADS EACH REP 100 'H'SHS SPONUSUSDOct 2000

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 Analysis2019/08/16 12:35
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
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.