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China Petroleum & Chemical Corporation Class H (HK:0386)
:0386

China Petroleum & Chemical (0386) AI Stock Analysis

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HK:0386

China Petroleum & Chemical

(0386)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
HK$5.00
▲(6.61% Upside)
The overall stock score of 68 reflects a stable financial position with strong equity and manageable debt, but challenges in revenue growth and profitability. Positive technical indicators and a reasonable valuation with a high dividend yield enhance the stock's attractiveness. The absence of earnings call and corporate events data limits the analysis to these factors.
Positive Factors
Strong Equity Base
A strong equity base provides financial stability and flexibility, supporting long-term growth and resilience against market fluctuations.
Low Leverage
Low leverage reduces financial risk and interest burden, allowing the company to invest in growth opportunities and maintain operational stability.
Efficient Cost Management
Improved gross profit margin indicates effective cost control, enhancing profitability and providing a buffer against revenue fluctuations.
Negative Factors
Negative Revenue Growth
Negative revenue growth suggests challenges in market demand or competitive positioning, potentially impacting long-term financial performance.
Declining Free Cash Flow
Declining free cash flow limits the company's ability to reinvest in growth, pay down debt, and return capital to shareholders, affecting future financial flexibility.
Decreased Net Profit Margin
A decreased net profit margin indicates challenges in converting revenue into profit, which can strain profitability and limit reinvestment capacity.

China Petroleum & Chemical (0386) vs. iShares MSCI Hong Kong ETF (EWH)

China Petroleum & Chemical Business Overview & Revenue Model

Company DescriptionChina Petroleum & Chemical Corporation, an energy and chemical company, engages in the oil and gas and chemical operations in Mainland China, Singapore, and internationally. It operates through five segments: Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others. The company explores and develops oil fields; produces crude oil and natural gas; processes and purifies crude oil; and manufactures and sells petroleum products. It also owns and operates oil depots and service stations; and distributes and sells refined petroleum products, including gasoline and diesel through wholesale and retail sales networks. In addition, the company manufactures and sells petrochemical and derivative petrochemical products; and other chemical products, such as basic organic chemicals, synthetic resins, synthetic fiber monomers and polymers, synthetic fibers, synthetic rubber, and chemical fertilizers. Further, it is involved in the exploration, production, and sale of petroleum and natural gas; production, storage, and sale of petrochemical and coal chemical products; import and export of petroleum products, natural gas, petrochemical, and chemical products; production and sale of catalyst products, lubricant base oil, polyester chips and fibers, plastics, and intermediate petrochemical products; research, development, production, and sale of ethylene and downstream byproducts; provision of geophysical exploration, drilling, survey, logging, downhole operational services, and construction services, as well as crude oil jetty services and natural gas pipeline transmission services; manufacturing production equipment; and coal chemical industry investment management activities. The company was incorporated in 2000 and is headquartered in Beijing, China. China Petroleum & Chemical Corporation is a subsidiary of China Petrochemical Corporation.
How the Company Makes MoneySinopec generates revenue primarily through the sale of refined petroleum products and petrochemicals. Its key revenue streams include the refining of crude oil into various fuels and chemicals, the sale of these products through its extensive distribution network, and the exploration and production of oil and gas. Additionally, Sinopec benefits from its strategic partnerships and joint ventures, particularly in upstream oil and gas exploration, which enhance its resource access and operational efficiency. The company's revenues are also influenced by global oil prices, domestic demand for energy, and government policies regarding energy resources.

China Petroleum & Chemical Financial Statement Overview

Summary
China Petroleum & Chemical shows a stable yet challenged financial performance. The company maintains a strong gross profit margin and a healthy balance sheet with low leverage. However, declining revenue and profit margins, along with negative cash flow growth, highlight areas of concern.
Income Statement
The income statement shows a mixed performance. The gross profit margin is relatively strong at 20.4% for TTM, indicating good cost management. However, the net profit margin has decreased to 1.2% TTM, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, with a decline of 3.7% TTM, suggesting potential market or operational challenges. EBIT and EBITDA margins have also declined, indicating pressure on operational efficiency.
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.23 TTM, which is relatively low and indicates prudent leverage management. However, the return on equity has decreased to 4.3% TTM, suggesting reduced profitability for shareholders. The equity ratio remains stable, indicating a solid capital structure.
Cash Flow
Cash flow analysis reveals some concerns, with a negative free cash flow growth rate of -4.7% TTM, indicating challenges in generating cash. The operating cash flow to net income ratio is 0.25 TTM, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.23 TTM, indicating limited cash available after capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.91T3.07T3.21T3.32T2.74T2.11T
Gross Profit593.64B502.78B641.45B632.19B662.83B404.89B
EBITDA152.84B207.68B214.65B219.97B238.73B110.42B
Net Income35.61B48.94B58.31B66.93B71.97B33.44B
Balance Sheet
Total Assets2.14T2.08T2.02T1.95T1.89T1.73T
Cash, Cash Equivalents and Short-Term Investments162.33B148.20B165.76B148.56B227.93B196.79B
Total Debt529.87B475.69B440.23B356.70B315.52B300.45B
Total Liabilities1.16T1.11T1.07T1.01T974.18B850.95B
Stockholders Equity824.57B815.82B802.99B784.71B774.18B741.49B
Cash Flow
Free Cash Flow34.43B10.15B-10.02B-37.48B80.25B49.64B
Operating Cash Flow168.11B149.36B161.47B116.27B225.17B167.52B
Investing Cash Flow-142.20B-161.24B-155.87B-95.01B-145.20B-102.20B
Financing Cash Flow-41.00B-19.24B22.73B-39.70B-57.94B-36.95B

China Petroleum & Chemical Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.69
Price Trends
50DMA
4.45
Positive
100DMA
4.31
Positive
200DMA
4.16
Positive
Market Momentum
MACD
0.08
Negative
RSI
59.97
Neutral
STOCH
72.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0386, the sentiment is Positive. The current price of 4.69 is above the 20-day moving average (MA) of 4.55, above the 50-day MA of 4.45, and above the 200-day MA of 4.16, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 72.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0386.

China Petroleum & Chemical Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$920.20B14.188.97%-13.87%-15.41%
73
Outperform
HK$1.96T8.6610.16%6.32%-6.92%-2.57%
72
Outperform
HK$139.15B8.888.02%0.80%-35.81%
68
Neutral
HK$779.59B14.695.52%-10.02%-27.89%
68
Neutral
€1.03T7.2217.50%6.76%-9.81%-8.84%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
64
Neutral
HK$186.60B9.2010.99%4.59%-3.42%-18.73%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0386
China Petroleum & Chemical
4.69
0.65
16.00%
HK:1898
China Coal Energy Co
11.08
2.69
32.11%
HK:1088
China Shenhua Energy Co
41.06
13.52
49.07%
HK:0857
PetroChina Company
8.10
2.27
38.89%
HK:1171
Yankuang Energy Group Company Limited Class H
10.87
3.65
50.51%
HK:0883
CNOOC Limited
20.94
3.05
17.02%

China Petroleum & Chemical Corporate Events

Sinopec Updates Rules of Procedure for General Meetings to Strengthen Governance
Dec 18, 2025

China Petroleum & Chemical Corporation has revised its Rules of Procedure for General Meetings, which govern how shareholder meetings are convened, proposed, notified, registered, conducted, voted on and followed up. Approved at the company’s second extraordinary general meeting of 2025, the updated rules formalize detailed procedures across these stages, aiming to standardize corporate governance practices, enhance transparency and ensure more orderly and compliant decision-making processes for shareholders and other stakeholders.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Tightens Board Meeting Rules After 2025 Extraordinary Shareholders’ Vote
Dec 18, 2025

China Petroleum & Chemical Corporation has revised its Rules of Procedure for Board Meetings, as approved at its second extraordinary general meeting of 2025 held on 18 December 2025. The updated rules formalize and refine the processes for convening, notifying, conducting, deliberating and voting at board meetings, as well as post-meeting follow-up, indicating a continued emphasis on corporate governance, decision-making transparency and standardized board operations that are likely to affect how strategic and operational decisions are initiated, debated and recorded at the board level.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Shareholders Approve Governance Overhaul and Capital Reduction at 2025 EGM
Dec 18, 2025

China Petroleum & Chemical Corporation held its second extraordinary general meeting of 2025 in Beijing, with shareholders representing about 78% of the company’s voting share capital in attendance, including both A-share and H-share investors. At the meeting, shareholders approved amendments to the Articles of Association and key procedural rules, along with the cancellation of the Supervisory Committee and a reduction of registered capital, signaling a significant governance and capital structure adjustment for Sinopec. The resolution received strong support from A-share holders but faced notable opposition from H-share shareholders, highlighting a divergence in sentiment between domestic and overseas investors that could shape future engagement and governance perceptions.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Outlines Board Composition and Key Committee Roles
Dec 18, 2025

China Petroleum & Chemical Corporation has announced the current composition of its board of directors, detailing the division between executive, non-executive and independent non-executive directors. The company also clarified the membership and chairmanship of its five key board committees—Strategy, Audit, Sustainable Development, Remuneration and Appraisal, and Nomination—indicating a structured governance framework aimed at strengthening oversight, strategic planning and sustainability efforts, which is relevant to investors’ assessment of corporate governance and board independence.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Corp. Proposes New Independent Director to Enhance Board Diversity
Nov 28, 2025

China Petroleum & Chemical Corporation (Sinopec Corp.) has proposed the election of Mr. Li Wei as an independent non-executive director for its board. Mr. Li’s extensive experience in corporate management and venture capital, particularly in fields like artificial intelligence and new energy, is expected to enhance the board’s diversity and decision-making capabilities. His appointment is pending approval at the upcoming extraordinary general meeting.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Corp. Announces Supplemental Notice for 2025 EGM
Nov 28, 2025

China Petroleum & Chemical Corporation has announced a supplemental notice for its second extraordinary general meeting in 2025, where a new resolution regarding the election of Mr. Li Wei as an Independent Non-executive Director will be considered. This move could potentially impact the company’s governance structure and strategic direction, reflecting its ongoing efforts to strengthen leadership and enhance corporate governance.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Corp. Announces Extraordinary General Meeting for Corporate Amendments
Oct 29, 2025

Sinopec Corp. has announced an extraordinary general meeting scheduled for December 18, 2025, to discuss significant amendments to its corporate structure, including changes to the Articles of Association and the cancellation of the Supervisor Committee. These proposed changes could impact the company’s governance and operational efficiency, potentially affecting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Releases Third Quarterly Report for 2025
Oct 29, 2025

China Petroleum & Chemical Corporation has released its Third Quarterly Report for 2025, as per regulatory requirements of the Hong Kong Stock Exchange. The announcement underscores the company’s adherence to transparency and regulatory compliance, which is crucial for maintaining investor confidence and market stability.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Announces Governance Overhaul and Capital Reduction
Oct 29, 2025

China Petroleum & Chemical Corporation has announced significant amendments to its Articles of Association, including the cancellation of its supervisory committee and a reduction in registered capital. These changes are aimed at improving corporate governance and aligning with updated regulatory standards, reflecting the company’s commitment to safeguarding shareholder value and adapting to evolving industry norms.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Corp. Schedules Board Meeting to Review Q3 2025 Results
Oct 15, 2025

China Petroleum & Chemical Corporation (Sinopec Corp.) announced that its board of directors will meet on October 29, 2025, to review and potentially approve the company’s third-quarter financial results for 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

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.Date of analysis: Dec 18, 2025