Sinopec Shanghai Petrochemical Co Ltd Class H (HK:0338)
:0338
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Sinopec Shanghai Petrochemical Co
(0338)
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Rating:45Neutral
Price Target:
HK$1.50
▲(10.29% Upside)
Action:ReiteratedDate:03/21/26
The score is primarily weighed down by deteriorating financial performance (losses, declining revenue, and volatile free cash flow) and bearish technicals (price below key moving averages with negative MACD). Valuation is only mildly supportive due to a modest dividend yield, while negative earnings limit P/E-based upside.
Positive Factors
Conservative balance sheet and low leverage
Low debt-to-equity and a conservatively levered balance sheet provide durable financial flexibility through commodity cycles. This cushion reduces default risk, supports continued operations during downturns and preserves capacity to finance working capital or strategic investments without immediate refinancing pressure.
Negative Factors
Volatile and recently deteriorated profitability
A swing to a sizable loss and negative gross and operating margins indicate weak margin resilience in adverse cycles. Persistently volatile profitability undermines reinvestment capacity and long-term return generation, making earnings an unreliable driver of shareholder value across the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and low leverage
Low debt-to-equity and a conservatively levered balance sheet provide durable financial flexibility through commodity cycles. This cushion reduces default risk, supports continued operations during downturns and preserves capacity to finance working capital or strategic investments without immediate refinancing pressure.
Read all positive factors
Sinopec Shanghai Petrochemical Co (0338) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$29.13B
Dividend Yield1.65%
Average Volume (3M)10.31M
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-11.11%
EPS Growth62.07%
CountryHK
Employees7,124
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)-0.11
Shares Outstanding3,213,804,000
10 Day Avg. Volume11,500,109
30 Day Avg. Volume10,308,837
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.56
Price to Sales (P/S)0.21
P/FCF Ratio-11.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.07
Revenue Forecast (FY)HK$71.96B
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 Pet...
How the Company Makes Money
The company primarily makes money by converting hydrocarbon feedstocks (such as crude oil and other refinery/petrochemical inputs) into higher-value products and selling those products to wholesale and industrial customers. Key revenue streams typ...
Sinopec Shanghai Petrochemical Co Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Negative
While the company demonstrated advancements in R&D and significant improvements in safety and environmental compliance, the financial performance was marred by a significant decrease in turnover, profits, and production in key areas, alongside inventory impairments and increased liabilities.Positive Updates
Increase in Chemical Product Demand
Chemical products increased by 27.9% Year-over-Year (YoY), with ethylene up 20.29% and butadiene up 28.47%.
Negative Updates
Decrease in Turnover and Profits
Turnover decreased by 9.17% YoY to CNY39.5 billion. Profit before tax was a loss of CNY583 million compared to a profit of CNY12.43 million in the prior period.
Read all updates
Q2-2025 Updates
Positive
Negative
Increase in Chemical Product Demand
Chemical products increased by 27.9% Year-over-Year (YoY), with ethylene up 20.29% and butadiene up 28.47%.
Read all positive updates
Company Guidance
During Sinopec Shanghai Petrochemical Co.'s 2025 Interim Results Conference, the company provided comprehensive guidance on their financial performance and strategic initiatives. Key financial metrics highlighted include a turnover of CNY39.5 billion, a decline of 9.17% year-on-year, and a profit before tax of minus CNY583 million, compared to a profit of CNY12.43 million in the previous year. The net profit attributable to the parent company was minus CNY449 million, translating to earnings per share of minus CNY0.04. The company's assets and liabilities experienced marginal growth, with total assets increasing by 0.5% to CNY41,896 million and total liabilities rising by 5.72% to CNY17,502 million. Capital expenditures for the first half of 2025 stood at CNY408 million, primarily allocated to efficiency improvement projects. Looking forward to the second half of the year, the company plans to continue its focus on safety, operational optimization, innovation, and transformation, with an adjusted capital expenditure target of around CNY2 billion. Despite the challenging external environment, including geopolitical tensions and fluctuating crude oil prices, the company remains committed to enhancing its operational efficiency and pursuing high-quality development projects.Sinopec Shanghai Petrochemical Co Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
72
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 62.35B | 87.13B | 93.01B | 72.65B | 75.89B |
| Gross Profit | -1.78B | 15.09B | 13.86B | -3.61B | 1.59B |
| EBITDA | -53.70M | 2.37B | 167.00M | -1.99B | 4.31B |
| Net Income | -1.57B | 316.50M | -1.41B | -2.84B | 2.00B |
Balance Sheet | |||||
| Total Assets | 39.83B | 41.77B | 39.66B | 41.14B | 46.92B |
| Cash, Cash Equivalents and Short-Term Investments | 7.85B | 12.10B | 5.61B | 4.58B | 13.55B |
| Total Debt | 819.93M | 1.57B | 3.71B | 2.27B | 2.26B |
| Total Liabilities | 16.59B | 16.62B | 14.72B | 14.78B | 16.54B |
| Stockholders Equity | 23.13B | 25.04B | 24.82B | 26.23B | 30.24B |
Cash Flow | |||||
| Free Cash Flow | -1.18B | 5.83B | -808.37M | -10.30B | 725.96M |
| Operating Cash Flow | 1.99B | 7.74B | 807.00M | -7.46B | 3.95B |
| Investing Cash Flow | -1.58B | -2.05B | 1.98B | 4.39B | -2.36B |
| Financing Cash Flow | -1.10B | -2.39B | 1.22B | -1.17B | -3.39B |
Sinopec Shanghai Petrochemical Co Technical Analysis
Negative
1.36
Price Trends
1.49
Negative
1.43
Negative
1.38
Negative
Market Momentum
-0.08
Positive
34.31
Neutral
12.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0338, the sentiment is Negative. The current price of 1.36 is above the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.49, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 34.31 is Neutral, neither overbought nor oversold. The STOCH value of 12.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0338.
Sinopec Shanghai Petrochemical Co Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$940.22M | 10.11 | 4.05% | ― | -12.48% | ― | |
71 Outperform | HK$62.86B | 11.10 | 7.88% | 4.58% | 4.37% | 0.58% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
55 Neutral | HK$531.79M | -20.66 | 6.71% | 2.35% | -13.08% | -43.83% | |
45 Neutral | HK$29.13B | -8.27 | -5.96% | 1.65% | -11.11% | 62.07% | |
41 Neutral | HK$2.90B | -10.83 | -45.94% | ― | 23.08% | 23.40% |
* Energy Sector Average
HK:0338
Sinopec Shanghai Petrochemical Co
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Sinopec Shanghai Petrochemical Co Corporate Events
Sinopec Shanghai Petrochemical Posts 2025 Loss and Skips Dividend Payout
Mar 18, 2026
Sinopec Shanghai Petrochemical reported a net loss attributable to equity shareholders of RMB 1.43 billion for 2025 under Chinese accounting standards, and RMB 1.61 billion under IFRS. In light of the loss, the board will not distribute annual div...
Sinopec Shanghai Petrochemical Books RMB397 Million Asset Impairment for 2025
Mar 18, 2026
Sinopec Shanghai Petrochemical Company Limited announced that its board has approved provisions for asset impairment totaling RMB397 million for 2025, following year-end impairment testing conducted under Chinese Accounting Standards. The impairme...
Sinopec Shanghai Petrochemical Sets March 2026 Board Meeting to Approve 2025 Results
Mar 4, 2026
Sinopec Shanghai Petrochemical has scheduled a board meeting for 18 March 2026 to review and approve the group’s annual results for the financial year ended 31 December 2025. The board will also consider other corporate matters at the meetin...
Sinopec Shanghai Petrochemical Clears 2026 First EGM Resolution Without Objections
Mar 3, 2026
Sinopec Shanghai Petrochemical Company Limited reported the results of its first extraordinary general meeting of 2026, held on 3 March in Shanghai, with over 56% of voting shares represented. The meeting was duly convened by the board, overseen b...
Sinopec Shanghai Petrochemical Names Qin Zhaohui Employee Director for New Board Term
Mar 1, 2026
Sinopec Shanghai Petrochemical has begun forming its twelfth board of directors ahead of the current board’s expiry in June 2026, in line with Chinese corporate law and stock exchange rules. At an employee representative assembly on 27 Febru...
Sinopec Shanghai Petrochemical Dilutes Stake in Carbon Fiber Subsidiary After RMB600 Million Capital Increase
Mar 1, 2026
Sinopec Shanghai Petrochemical has brought in new investors to Inner Mongolia New Jinshan Carbon Fiber Co., Ltd., its formerly wholly owned carbon fiber subsidiary, via a RMB600 million capital increase split between Sinopec Corp. and other strate...
Sinopec Shanghai Petrochemical Calls 2026 EGM to Consolidate New Materials Subsidiary
Feb 6, 2026
Sinopec Shanghai Petrochemical Company Limited has called its first extraordinary general meeting for 2026, to be held on 3 March 2026 in Shanghai. Shareholders will vote on an ordinary resolution to approve the consolidation of Shanghai Jinshan B...
Sinopec Shanghai Petrochemical Posts Solid 2025 Volumes Amid Broad Product Price Declines
Jan 19, 2026
Sinopec Shanghai Petrochemical reported its key operating data for the 2025 financial year, showing substantial production and sales volumes across refined oil and major chemical products. Diesel and gasoline remained significant revenue contribut...
Sinopec Shanghai Petrochemical Warns of Up to RMB1.6 Billion Loss for 2025
Jan 19, 2026
Sinopec Shanghai Petrochemical Company Limited has issued a profit warning for the 2025 financial year, estimating a net loss attributable to equity shareholders of between RMB1.289 billion and RMB1.576 billion, and a similar loss range after excl...
Sinopec Shanghai Petrochemical to Consolidate Baling New Materials as Subsidiary
Jan 8, 2026
Sinopec Shanghai Petrochemical has approved a plan to consolidate Baling New Materials, a 50:50 joint venture with Hunan Petrochemical, into its group financial statements by amending the joint venture’s Articles of Association and the terms...
Sinopec Shanghai Petrochemical Sets RMB114 Million Cap Under New Crude Storage Framework
Dec 29, 2025
Sinopec Shanghai Petrochemical Company Limited has signed a new framework agreement with its Baishawan Branch and Sinopec Reserve for the provision of crude oil storage services, effective 29 December 2025, setting an annual cap of RMB114 million ...
Sinopec Shanghai Petrochemical Plans RMB600 Million Capital Injection for Carbon Fiber Subsidiary
Dec 29, 2025
Sinopec Shanghai Petrochemical has approved a capital increase of up to RMB600 million for its wholly owned subsidiary, Carbon Fiber Company, to be executed via a combination of non-public agreement and public tender. Sinopec Corp. plans to subscr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.