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338

Sinopec Shanghai PetrochemicalSEHK:338 Stock Report

Last Price

HK$1.87

Market Cap

HK$42.6b

7D

0.5%

1Y

5.7%

Updated

23 Jan, 2022

Data

Company Financials +
338 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health5/6
Dividends4/6

338 Stock Overview

Sinopec Shanghai Petrochemical Company Limited, together with its subsidiaries, manufactures and sells petrochemical products in the People’s Republic of China.

Sinopec Shanghai Petrochemical Competitors

Saudi Basic Industries

SASE:2010

ر.س379.2b

BASF

XTRA:BAS

€60.7b

Bayer

XTRA:BAYN

€50.7b

Wanhua Chemical Group

SHSE:600309

CN¥294.1b

Price History & Performance

Summary of all time highs, changes and price drops for Sinopec Shanghai Petrochemical
Historical stock prices
Current Share PriceHK$1.87
52 Week HighHK$2.25
52 Week LowHK$1.55
Beta0.71
1 Month Change3.89%
3 Month Change-1.06%
1 Year Change5.65%
3 Year Change-48.91%
5 Year Change-61.20%
Change since IPO51.62%

Recent News & Updates

Jan 07
Sinopec Shanghai Petrochemical (HKG:338) Will Be Hoping To Turn Its Returns On Capital Around

Sinopec Shanghai Petrochemical (HKG:338) Will Be Hoping To Turn Its Returns On Capital Around

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Dec 09
Is Sinopec Shanghai Petrochemical Company Limited (HKG:338) Trading At A 47% Discount?

Is Sinopec Shanghai Petrochemical Company Limited (HKG:338) Trading At A 47% Discount?

In this article we are going to estimate the intrinsic value of Sinopec Shanghai Petrochemical Company Limited...

Oct 25
Sinopec Shanghai Petrochemical (HKG:338) Seems To Use Debt Quite Sensibly

Sinopec Shanghai Petrochemical (HKG:338) Seems To Use Debt Quite Sensibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Oct 04
Sinopec Shanghai Petrochemical (HKG:338) Will Want To Turn Around Its Return Trends

Sinopec Shanghai Petrochemical (HKG:338) Will Want To Turn Around Its Return Trends

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll...

Shareholder Returns

338HK ChemicalsHK Market
7D0.5%-0.001%1.9%
1Y5.7%19.1%-13.5%

Return vs Industry: 338 underperformed the Hong Kong Chemicals industry which returned 19.1% over the past year.

Return vs Market: 338 exceeded the Hong Kong Market which returned -13.5% over the past year.

Price Volatility

Is 338's price volatile compared to industry and market?
338 volatility
338 Average Weekly Movement4.1%
Chemicals Industry Average Movement7.1%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.1%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 338 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 338's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19728,199Zemin Guanhttps://www.spc.com.cn

Sinopec Shanghai Petrochemical Company Limited, together with its subsidiaries, manufactures and sells petrochemical products in the People’s Republic of China. It operates through five segments: Synthetic Fibers, Resins and Plastics, Intermediate Petrochemicals, Petroleum Products, and Trading of Petrochemical Products. The Synthetic Fibers segment produces polyesters, acrylic fibers, and carbon fibers that are primarily used in the textile and apparel industries.

Sinopec Shanghai Petrochemical Fundamentals Summary

How do Sinopec Shanghai Petrochemical's earnings and revenue compare to its market cap?
338 fundamental statistics
Market CapCN¥34.71b
Earnings (TTM)CN¥3.24b
Revenue (TTM)CN¥81.61b

5.1x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
338 income statement (TTM)
RevenueCN¥81.61b
Cost of RevenueCN¥63.85b
Gross ProfitCN¥17.77b
ExpensesCN¥14.53b
EarningsCN¥3.24b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.30
Gross Margin21.77%
Net Profit Margin3.96%
Debt/Equity Ratio20.9%

How did 338 perform over the long term?

See historical performance and comparison

Dividends

6.6%

Current Dividend Yield

33%

Payout Ratio

Valuation

Is Sinopec Shanghai Petrochemical undervalued compared to its fair value and its price relative to the market?

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 338 (HK$1.87) is trading below our estimate of fair value (HK$3.41)

Significantly Below Fair Value: 338 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 338 is good value based on its PE Ratio (5.1x) compared to the Hong Kong Chemicals industry average (7.6x).

PE vs Market: 338 is good value based on its PE Ratio (5.1x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 338 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 338 is good value based on its PB Ratio (0.5x) compared to the HK Chemicals industry average (0.8x).


Future Growth

How is Sinopec Shanghai Petrochemical forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 338's forecast earnings growth (4.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 338's earnings (4.7% per year) are forecast to grow slower than the Hong Kong market (16.4% per year).

High Growth Earnings: 338's earnings are forecast to grow, but not significantly.

Revenue vs Market: 338's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: 338's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 338's Return on Equity is forecast to be low in 3 years time (10.1%).


Past Performance

How has Sinopec Shanghai Petrochemical performed over the past 5 years?

-29.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 338 has high quality earnings.

Growing Profit Margin: 338 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 338's earnings have declined by 29% per year over the past 5 years.

Accelerating Growth: 338 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 338 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (60.9%).


Return on Equity

High ROE: 338's Return on Equity (10.7%) is considered low.


Financial Health

How is Sinopec Shanghai Petrochemical's financial position?


Financial Position Analysis

Short Term Liabilities: 338's short term assets (CN¥23.4B) exceed its short term liabilities (CN¥16.0B).

Long Term Liabilities: 338's short term assets (CN¥23.4B) exceed its long term liabilities (CN¥852.7M).


Debt to Equity History and Analysis

Debt Level: 338 has more cash than its total debt.

Reducing Debt: 338's debt to equity ratio has increased from 1.5% to 20.9% over the past 5 years.

Debt Coverage: 338's debt is well covered by operating cash flow (55.5%).

Interest Coverage: 338 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Sinopec Shanghai Petrochemical current dividend yield, its reliability and sustainability?

6.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 338's dividend (6.57%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.31%).

High Dividend: 338's dividend (6.57%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.95%).


Stability and Growth of Payments

Stable Dividend: 338's dividend payments have been volatile in the past 10 years.

Growing Dividend: 338's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.3%), 338's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 338's dividends in 3 years are forecast to be covered by earnings (58.2% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Zemin Guan (57 yo)

1.92yrs

Tenure

CN¥805,000

Compensation

Mr. Zemin Guan serves as Vice Chairman and Executive Director at Sinopec Shanghai Petrochemical Company Limited since June 18, 2020. Mr. Guan has been President of Sinopec Shanghai Petrochemical Company Li...


CEO Compensation Analysis

Compensation vs Market: Zemin's total compensation ($USD126.99K) is below average for companies of similar size in the Hong Kong market ($USD705.00K).

Compensation vs Earnings: Insufficient data to compare Zemin's compensation with company performance.


Leadership Team

Experienced Management: 338's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: 338's board of directors are not considered experienced ( 2.3 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

Sinopec Shanghai Petrochemical Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sinopec Shanghai Petrochemical Company Limited
  • Ticker: 338
  • Exchange: SEHK
  • Founded: 1972
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: HK$42.633b
  • Shares outstanding: 10.82b
  • Website: https://www.spc.com.cn

Number of Employees


Location

  • Sinopec Shanghai Petrochemical Company Limited
  • 48 Jinyi Road
  • Jinshan District
  • Shanghai
  • 200540
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 10:05
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.