Sinopec Shanghai Petrochemical Co (0338) AI Stock Analysis

• Market Cap: $28.15B
• Dividend Yield: 1.59%
• Average Volume (3M): 19.81M
• Price to Earnings (P/E): 43.7
• Beta (1Y): 0.78
• Revenue Growth: -11.11%
• EPS Growth: 62.07%
• Country: HK
• Employees: 7,124
• Sector: Energy
• Sector Strength: 58
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.04
• Shares Outstanding: 3,213,804,000
• 10 Day Avg. Volume: 23,825,889
• 30 Day Avg. Volume: 19,813,264
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 5.92
• 1Y Price Target: $1.48
• Price Target Upside: 8.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$1.50 ▲(9.49% Upside)

Sinopec Shanghai Petrochemical Co's overall stock score reflects a challenging financial environment with mixed technical indicators and unattractive valuation metrics. The company's financial performance is hindered by thin margins and cash flow issues, while the earnings call highlighted both operational improvements and financial setbacks. The stock's technical position is slightly positive, but the negative P/E ratio and low dividend yield weigh heavily on the valuation.

Sinopec Shanghai Petrochemical Co Business Overview & Revenue Model

Company Description

Sinopec Shanghai Petrochemical Company Limited, together with its subsidiaries, manufactures and sells petroleum 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. 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 Petrochemicals 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 refinery facilities used to produce refined gasoline, fuel, diesel oil, heavy oil, and liquefied petroleum gas. 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.

How the Company Makes Money

Sinopec Shanghai Petrochemical Co generates revenue through its diverse product lines, primarily consisting of refined petroleum products, petrochemicals, resins, and synthetic fibers. The company operates large-scale refining and chemical production facilities, enabling it to process crude oil into high-value end-products. Key revenue streams include the sale of gasoline, diesel, aviation fuel, and other refined products, as well as petrochemicals like ethylene and propylene used in manufacturing industries. The company benefits from strategic partnerships and its integration within the Sinopec Group, which provides access to extensive resources and distribution networks, enhancing its market reach and operational efficiency. Additionally, the company's focus on innovation and technological advancement helps it maintain competitiveness in the global market, contributing to its profitability.

Sinopec Shanghai Petrochemical Co Financial Statement Overview

Summary

Sinopec Shanghai Petrochemical Co shows a mixed financial profile. The income statement indicates modest profitability amidst fluctuating revenue and thin margins. The balance sheet is robust with low leverage, but returns on equity are minimal. Cash flow challenges persist, with negative free cash flow highlighting liquidity management issues. Improving operational efficiency and cash generation will be key to enhancing financial performance and stability.

Income Statement

The company's income statement shows mixed performance. The TTM data reveals a gross profit margin of 17.40% and a net profit margin of 0.17%, indicating slim profitability despite a positive gross margin. Revenue growth has been volatile, with significant fluctuations over recent years, including a decrease in TTM revenue. The EBIT and EBITDA margins for the TTM period are 0.29% and 0.60%, respectively, highlighting challenges in generating operating profits. The company's revenue growth and profitability show potential but are impacted by operational inefficiencies.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.01 in the TTM period, suggesting low financial leverage. The return on equity is low at 0.57%, indicating limited profitability from shareholders' equity. The equity ratio of 60.42% demonstrates a strong equity base relative to total assets, highlighting stability. The company's conservative leverage profile is a positive, although the low ROE suggests room for improving returns on equity investments.

Cash Flow

Cash flow analysis shows a challenging environment. The TTM free cash flow is negative, indicating cash outflows exceeding inflows from operations. The operating cash flow to net income ratio is 7.44, showing strong cash generation relative to reported net income. However, the free cash flow to net income ratio is negative, reflecting capital expenditure pressures. The company needs to improve free cash flow generation to support long-term financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	87.13B	93.01B	72.65B	75.89B	61.56B
Gross Profit	15.09B	13.86B	-3.61B	1.59B	-340.25M
EBITDA	2.37B	-52.09M	-1.99B	4.31B	568.82M
Net Income	316.50M	-1.41B	-2.84B	2.00B	628.11M
Balance Sheet
Total Assets	41.77B	39.66B	41.14B	46.92B	44.62B
Cash, Cash Equivalents and Short-Term Investments	12.10B	5.61B	4.58B	13.55B	12.17B
Total Debt	1.57B	3.71B	2.27B	2.26B	4.58B
Total Liabilities	16.62B	14.72B	14.78B	16.54B	15.28B
Stockholders Equity	25.04B	24.82B	26.23B	30.24B	29.20B
Cash Flow
Free Cash Flow	5.83B	-808.37M	-10.30B	725.96M	-161.14M
Operating Cash Flow	7.74B	807.00M	-7.46B	3.95B	1.68B
Investing Cash Flow	-2.05B	1.98B	4.39B	-2.36B	-3.89B
Financing Cash Flow	-2.39B	1.22B	-1.17B	-3.39B	1.68B

Sinopec Shanghai Petrochemical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0338, the sentiment is Positive. The current price of 1.37 is below the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.34, and above the 200-day MA of 1.22, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0338.

Sinopec Shanghai Petrochemical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2337	70 Outperform	HK$670.36M	9.12	13.86%	2.23%	3.42%	70.99%
Sector *	65 Neutral	$15.47B	7.30	2.96%	5.25%	4.27%	-62.52%
0338	55 Neutral	$28.15B	43.67	-0.71%	1.59%	-11.11%	62.07%
KUNUF	―	$8.12B	10.10	8.88%	4.63%	―	―
0931	40 Underperform	HK$3.23B	―	-80.73%	―	57.62%	32.20%
CLSZF	―	$104.34M	3.70	4.05%	―	―	―
K20A	―	€38.85M	―	-7.06%	―	―	―

Sinopec Shanghai Petrochemical Co Corporate Events

Sinopec Shanghai Petrochemical Issues Profit Warning for H1 2025

Sinopec Shanghai Petrochemical Company Limited has issued a profit warning for the first half of 2025, estimating a net loss attributable to equity shareholders between RMB418 million and RMB511 million. The anticipated loss is attributed to a decrease in profit margins due to declining oil prices and stagnant market demand, which have narrowed the price difference between the company’s main products and raw material costs.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$3.70 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Reports Decline in Product Prices for H1 2025

Sinopec Shanghai Petrochemical Company Limited reported its major operating data for the first half of 2025, highlighting a decline in the average prices of key products such as diesel, gasoline, and jet fuel compared to the same period in 2024. The company also noted a decrease in the average processing cost of crude oil, which could impact its profitability and market positioning. These changes reflect broader market trends and could influence stakeholder decisions moving forward.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$3.70 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Secures Shareholder Support at Key Meetings

Sinopec Shanghai Petrochemical Company Limited announced the successful passing of resolutions at its 2024 Annual General Meeting and the first class meetings for A and H shareholders for 2025. The meetings, held on June 11, 2025, saw significant shareholder participation with no objections to the proposed resolutions. This indicates strong shareholder support and could positively impact the company’s strategic decisions and future operations.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$3.70 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Updates Final Dividend Details for 2024

Sinopec Shanghai Petrochemical Company Limited announced an update regarding its final cash dividend for the year ended December 31, 2024. The dividend is set at RMB 0.02 per share, with a payment in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0916. The ex-dividend date is June 24, 2025, and payment is scheduled for July 24, 2025. The announcement also details the withholding tax implications for non-resident shareholders, emphasizing the company’s compliance with international tax treaties, which may affect the net dividend received by shareholders.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$3.70 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Enters Steam Sales Agreement with Baling New Materials

Sinopec Shanghai Petrochemical Company Limited has approved a Steam Sales Contract with Baling New Materials, effective from signing until December 31, 2025, with a fee cap of RMB106.50 million. This transaction, classified as a continuing connected transaction under Hong Kong Listing Rules, involves the supply of industrial-grade steam and reflects strategic collaboration within the Sinopec group, potentially enhancing operational synergies and market positioning.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$3.70 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Co. Announces Board Composition and Roles

Sinopec Shanghai Petrochemical Co. has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement highlights the company’s governance structure, which includes executive, non-executive, and independent non-executive directors, as well as their participation in various board committees. The strategic positioning of these directors in committees such as Audit and Compliance, Remuneration and Appraisal, Nomination, and Strategy and ESG reflects the company’s commitment to robust governance and strategic oversight.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$3.70 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Announces 2024 AGM with Key Resolutions

Sinopec Shanghai Petrochemical Company Limited has announced its 2024 Annual General Meeting (AGM) scheduled for June 2025, where several key resolutions will be considered. These include the approval of the 2024 work reports, financial statements, profit distribution plan, and the re-appointment of auditors for 2025. Additionally, special resolutions will address the issuance of debt financing bonds and share repurchase authorizations. The AGM will also discuss the implementation of remuneration for the company’s directors and senior management.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$3.70 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Announces 2025 H Shareholders Class Meeting

Sinopec Shanghai Petrochemical Company Limited has announced the first H shareholders class meeting for 2025, scheduled for June 11, 2025, in Shanghai, China. The meeting will consider a special resolution to authorize the board of directors to repurchase domestic and/or overseas listed foreign shares of the company. This move could have significant implications for the company’s market strategy and shareholder value, potentially impacting its financial structure and market positioning.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$3.70 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Announces Final Dividend for 2024

Sinopec Shanghai Petrochemical Company Limited has announced a final cash dividend of RMB 0.02 per share for the financial year ending December 31, 2024. The dividend will be approved by shareholders on June 11, 2025, and paid on July 24, 2025. The announcement includes details on withholding tax rates applicable to non-resident shareholders, with a standard rate of 10% for both enterprise and individual non-residents. This dividend declaration reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$3.70 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.