Sinopec Shanghai Petrochemical Co (0338) AI Stock Analysis

• Market Cap: $27.17B
• Dividend Yield: 1.66%
• Average Volume (3M): 16.16M
• Price to Earnings (P/E): 41.5
• Beta (1Y): 0.71
• Revenue Growth: -8.96%
• EPS Growth: N/A
• Country: HK
• Employees: 7,124
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): >-0.01
• Shares Outstanding: 3,213,804,000
• 10 Day Avg. Volume: 19,334,330
• 30 Day Avg. Volume: 16,162,412
• PEG Ratio: 0.02
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.69
• Price Target Upside: 181.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: HK$1.50 ▲(14.50%Upside)

The overall stock score is primarily influenced by technical analysis showing positive momentum, despite financial challenges. The mixed financial performance with low profitability and cash flow issues is a concern, further compounded by an overvalued P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data means these factors did not impact the score.

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 the sale of a diverse range of products including refined oil products, petrochemicals, and synthetic materials. Key revenue streams involve the sale of refined products like gasoline, diesel, and jet fuel, which are essential for transportation and industrial uses. Additionally, the company produces and sells petrochemicals and chemical fibers used in manufacturing, textiles, and other industries. Partnerships with other players in the oil and gas sector, as well as its integration within the larger Sinopec Group, help in optimizing its supply chain and distribution network, thereby enhancing its earnings capabilities. Factors such as global oil prices, domestic demand in China, and international trade agreements also significantly impact the company's revenue.

Sinopec Shanghai Petrochemical Co Financial Statement Overview

Summary

The company exhibits mixed financial performance. While the balance sheet is strong with low leverage, profitability is limited with low ROE and thin margins. Cash flow issues are notable, with negative free cash flow indicating liquidity challenges. Overall, the company needs to enhance operational efficiency and cash generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.37B	87.13B	93.01B	72.65B	75.89B	61.56B
Gross Profit	14.86B	15.09B	13.86B	-3.61B	1.59B	-340.25M
EBITDA	509.08M	2.37B	-52.09M	-1.99B	4.31B	568.82M
Net Income	142.60M	316.50M	-1.41B	-2.84B	2.00B	628.11M
Balance Sheet
Total Assets	41.24B	41.77B	39.66B	41.14B	46.92B	44.62B
Cash, Cash Equivalents and Short-Term Investments	12.04B	12.10B	5.61B	4.58B	13.55B	12.17B
Total Debt	189.02M	1.57B	3.71B	2.27B	2.26B	4.58B
Total Liabilities	16.21B	16.62B	14.72B	14.78B	16.54B	15.28B
Stockholders Equity	24.92B	25.04B	24.82B	26.23B	30.24B	29.20B
Cash Flow
Free Cash Flow	-1.67B	5.83B	-808.37M	-10.30B	725.96M	-161.14M
Operating Cash Flow	1.06B	7.74B	807.00M	-7.46B	3.95B	1.68B
Investing Cash Flow	1.69B	-2.05B	1.98B	4.39B	-2.36B	-3.89B
Financing Cash Flow	-5.24B	-2.39B	1.22B	-1.17B	-3.39B	1.68B

Sinopec Shanghai Petrochemical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.31 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.21, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 68.45 is Neutral, neither overbought nor oversold. The STOCH value of 83.11 is Negative, 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
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%
2337	66 Neutral	HK$655.38M	8.91	13.86%	2.29%	3.42%	70.99%
0338	61 Neutral	$27.17B	41.46	0.58%	1.66%	-8.96%	―
KUNUF		$8.59B	13.08	9.26%	3.31%	―	―
0931	29 Underperform	HK$1.63B	―	-80.73%	―	174.10%	6.00%
CLSZF		$95.71M	3.70	4.81%	―	―	―
K20A		€38.12M	―	-7.06%	378.30%	―	―

Sinopec Shanghai Petrochemical Co Corporate Events

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.

Sinopec Shanghai Petrochemical Reports Challenging Q1 2025 Financials

Sinopec Shanghai Petrochemical Company Limited has released its 2025 first quarterly report, indicating a challenging financial period. The company reported an 8.28% decrease in operating income compared to the previous year, and a net loss attributable to equity shareholders of RMB 89,839,000. Despite the negative financial indicators, the company managed to generate positive net cash flows from operating activities amounting to RMB 1,789,914,000. The report highlights the company’s commitment to transparency and accuracy in financial reporting, although the decrease in financial performance may impact its market positioning and stakeholder confidence.

Sinopec Shanghai Petrochemical Reports Q1 2025 Operating Data

Sinopec Shanghai Petrochemical Company Limited reported its major operating data for the first quarter of 2025, highlighting production and sales volumes alongside revenue figures. The company experienced a decrease in the average prices of several key products, such as diesel, gasoline, and jet fuel, compared to the previous year, which may impact its revenue and market positioning. However, some products like polyethylene and polypropylene saw slight price increases, indicating potential areas of resilience.

Sinopec Shanghai Petrochemical to Review Q1 2025 Results

Sinopec Shanghai Petrochemical Company Limited has announced that its Board of Directors will meet on April 23, 2025, to consider and approve the company’s first-quarter results for the period ending March 31, 2025. This meeting is a routine part of the company’s operations to ensure transparency and compliance with listing regulations, and it may have implications for stakeholders interested in the company’s financial performance.