SEHK:338

Stock Analysis Report

Sinopec Shanghai Petrochemical

Executive Summary

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

Rewards

Trading at 8.5% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -0.5% per year for the next 3 years

Dividend of 12.32% is not well covered by earnings

Profit margins (2.2%) are lower than last year (6.4%)

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Saudi Basic Industries

SASE:2010

Share Price & News

How has Sinopec Shanghai Petrochemical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 338 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

338

-0.4%

HK Chemicals

1.6%

HK Market


1 Year Return

-36.2%

338

-21.0%

HK Chemicals

6.0%

HK Market

Return vs Industry: 338 underperformed the Hong Kong Chemicals industry which returned -20.8% over the past year.

Return vs Market: 338 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

338IndustryMarket
7 Day-1.3%-0.4%1.6%
30 Day1.3%2.9%4.4%
90 Day2.2%1.7%8.6%
1 Year-30.5%-36.2%-15.2%-21.0%9.9%6.0%
3 Year-37.4%-49.9%-24.0%-36.0%27.7%14.7%
5 Year30.4%0.9%-6.8%-22.9%21.7%1.4%

Price Volatility Vs. Market

How volatile is Sinopec Shanghai Petrochemical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

10.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 338 (HK$2.32) is trading below our estimate of fair value (HK$2.54)

Significantly Below Fair Value: 338 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 338 is poor value based on its PE Ratio (10.1x) compared to the Chemicals industry average (6.8x).

PE vs Market: 338 is good value based on its PE Ratio (10.1x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 338's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 338 is overvalued based on its PB Ratio (0.7x) compared to the HK Chemicals industry average (0.7x).


Next Steps

Future Growth

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

-0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 338's earnings are forecast to decline over the next 3 years (-0.5% per year).

Earnings vs Market: 338's earnings are forecast to decline over the next 3 years (-0.5% per year).

High Growth Earnings: 338's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 338's revenue (1.1% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 338's revenue (1.1% per year) is forecast to grow slower than 20% 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 (7.5%).


Next Steps

Past Performance

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

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 338 has high quality earnings.

Growing Profit Margin: 338's current net profit margins (2.2%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: 338's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: 338's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 338 had negative earnings growth (-65.8%) over the past year, making it difficult to compare to the Chemicals industry average (21.4%).


Return on Equity

High ROE: 338's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sinopec Shanghai Petrochemical's financial position?


Financial Position Analysis

Short Term Liabilities: 338's short term assets (CN¥19.7B) exceed its short term liabilities (CN¥9.9B).

Long Term Liabilities: 338's short term assets (CN¥19.7B) exceed its long term liabilities (CN¥163.8M).


Debt to Equity History and Analysis

Debt Level: 338's debt to equity ratio (3.4%) is considered satisfactory.

Reducing Debt: 338's debt to equity ratio has reduced from 43.3% to 3.4% over the past 5 years.

Debt Coverage: 338's debt is well covered by operating cash flow (296.1%).

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


Balance Sheet

Inventory Level: 338 has a high level of physical assets or inventory.

Debt Coverage by Assets: 338's debt is covered by short term assets (assets are 19.8x debt).


Next Steps

Dividend

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

12.36%

Current Dividend Yield


Dividend Yield vs Market

company12.4%marketbottom25%2.2%markettop25%6.0%industryaverage8.8%forecastin3Years6.0%

Current dividend yield vs market & industry

Notable Dividend: 338's dividend (12.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 338's dividend (12.32%) is in the top 25% of dividend payers in the Hong Kong market (6.02%)


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 high payout ratio (124.8%), 338's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 338's dividends in 3 years are forecast to be covered by earnings (53.1% payout ratio).


Next Steps

Management

What is the CEO of Sinopec Shanghai Petrochemical's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Sinopec Shanghai Petrochemical has no CEO, or we have no data on them.


Management Age and Tenure

1.1yrs

Average Tenure

52yo

Average Age

Experienced Management: 338's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

52yo

Average Age

Experienced Board: 338'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.


Recent Insider Transactions

SellHK$6,812,65509 Dec 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares3,128,800
Max PriceHK$2.18
SellHK$1,033,68209 Dec 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares474,732
Max PriceHK$2.18
BuyHK$984,38609 Dec 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares452,092
Max PriceHK$2.18
BuyHK$21,77409 Dec 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares10,000
Max PriceHK$2.18
BuyHK$3,509,03906 Dec 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares1,612,980
Max PriceHK$2.18
SellHK$19,431,79131 Oct 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares8,642,121
Max PriceHK$2.25
SellHK$14,531,66115 Oct 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares6,573,041
Max PriceHK$2.21
SellHK$7,594,89121 May 19
BlackRock, Inc.
EntityCompany
Shares2,216,385
Max PriceHK$3.43
SellHK$79,479,67829 Apr 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares21,358,599
Max PriceHK$3.72
BuyHK$45,120,27123 Apr 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares12,036,564
Max PriceHK$3.75
SellHK$86,769,44122 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares21,513,811
Max PriceHK$4.03
BuyHK$22,889,07020 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares5,724,555
Max PriceHK$4.00
BuyHK$111,663,77220 Mar 19
BlackRock, Inc.
EntityCompany
Shares27,876,206
Max PriceHK$4.01
BuyHK$30,47520 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares8,000
Max PriceHK$3.81
SellHK$18,802,03520 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares4,935,698
Max PriceHK$3.81
SellHK$8,388,29320 Feb 19
Highbridge Capital Management, LLC
EntityCompany
Shares2,202,000
Max PriceHK$3.81
BuyHK$472,74620 Feb 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares124,100
Max PriceHK$3.81
BuyHK$28,144,27519 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares7,285,983
Max PriceHK$3.86

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


Management Team

  • Haijun Wu (56yo)

    Chairman & Secretary to the Board

    • Tenure: 2.1yrs
    • Compensation: CN¥1.32m
  • Qiang Jin (54yo)

    VP & Executive Director

    • Tenure: 5.6yrs
    • Compensation: CN¥768.00k
  • Meiyun Zhou (49yo)

    VP, Deputy GM

    • Tenure: 2.6yrs
    • Compensation: CN¥702.00k
  • Wenmin Jin (54yo)

    VP & Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥734.00k
  • Feng Zhang (50yo)

    Employee Representative Supervisor & Auditing Director

    • Tenure: 0.3yrs
  • Hongjun Chen (48yo)

    Employee Representative Supervisor

    • Tenure: 0.3yrs

Board Members

  • Haijun Wu (56yo)

    Chairman & Secretary to the Board

    • Tenure: 2.1yrs
    • Compensation: CN¥1.32m
  • Dianwu Lei (56yo)

    Non-Executive Director

    • Tenure: 14.6yrs
  • Qiang Jin (54yo)

    VP & Executive Director

    • Tenure: 5.6yrs
    • Compensation: CN¥768.00k
  • Meiyun Zhou (49yo)

    VP, Deputy GM

    • Tenure: 2.6yrs
    • Compensation: CN¥702.00k
  • Yimin Zhang (65yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: CN¥150.00k
  • Wenmin Jin (54yo)

    VP & Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥734.00k
  • Yuanqin Li (46yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥150.00k
  • Yanhui Ma (48yo)

    Chairman of Supervisory Committee

    • Tenure: 2.3yrs
  • Feng Zhang (50yo)

    Employee Representative Supervisor & Auditing Director

    • Tenure: 0.3yrs
  • Hongjun Chen (48yo)

    Employee Representative Supervisor

    • Tenure: 0.3yrs

Company Information

Sinopec Shanghai Petrochemical Company Limited's company bio, 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
  • Market Cap: HK$41.306b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHINYSE (New York Stock Exchange)SPONS ADR-REPR 100 CLASS'H'CNYUUSUSDJul 1993
SHIDB (Deutsche Boerse AG)SPONS ADR-REPR 100 CLASS'H'CNYUDEEURJul 1993
K3DDSGX (Singapore Exchange)SPONS ADR-REPR 100 CLASS'H'CNYUSGUSDJul 1993
SPTJ.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDAug 1993
338SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDAug 1993
SGJHDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURAug 1993
338SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDAug 1993
338SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDAug 1993
600688SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJun 1994
600688XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJun 1994

Biography

Sinopec Shanghai Petrochemical Company Limited, together with its subsidiaries, manufactures and sells petrochemical products in the People’s Republic of China. The company operates through five segments: Synthetic Fibres, Resins and Plastics, Intermediate Petrochemical Products, Petroleum Products, and Trading of Petrochemical Products. The Synthetic Fibres segment produces polyesters, acrylic fibers, and carbon fibers that are primarily used in the textile and apparel industries. The Resins and Plastics segment produces polyester chips that are used to produce polyester fibers, coating, and containers; polyethylene resins and plastics, which are used to produce insulated cables and mulching films, as well as molded products, such as housewares and toys; and polypropylene resins that are used for films and sheets, as well as molded products, such as housewares, toys, consumer electronics, and automobile parts; and PVA granules. The Intermediate Petrochemical Products segment produces p-xylene, benzene, and ethylene oxide, which are used as raw materials in the production of other petrochemicals, resins, plastics, and synthetic fibers. The Petroleum Products segment operates crude oil distillation facilities that produce vacuum and atmospheric gas oils used as feedstock; and residual oil and low octane gasoline fuels, as well as produces various fuels, such as diesel oil, jet fuel, heavy oil, and liquefied petroleum gas for transportation, industry, and household heating applications. The Trading of Petrochemical Products segment is involved in the import and export of petrochemical products. The company was founded in 1972 and is based in Shanghai, the People's Republic of China. Sinopec Shanghai Petrochemical Company Limited is a subsidiary of China Petroleum & Chemical Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/20 12:45
End of Day Share Price2020/01/20 00:00
Earnings2019/09/30
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.