China Petroleum & Chemical (0386) AI Stock Analysis

• Market Cap: $693.46B
• Dividend Yield: 5.74%
• Average Volume (3M): 113.69M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.64
• Revenue Growth: -10.02%
• EPS Growth: -27.89%
• Country: HK
• Employees: 355,952
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.08
• Shares Outstanding: 23,945,352,000
• 10 Day Avg. Volume: 125,486,344
• 30 Day Avg. Volume: 113,694,032
• PEG Ratio: -0.57
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 50.08
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: 7.10
• 1Y Price Target: $4.51
• Price Target Upside: 3.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: HK$4.50 ▲(3.69% Upside)

The overall stock score of 67 reflects a stable financial position with a strong dividend yield, but is tempered by declining revenue and profit margins, as well as potential overbought technical indicators. The stock's valuation is reasonable, providing some support to the score.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management, which can support profitability even amid revenue challenges.

Healthy Balance Sheet

A low debt-to-equity ratio suggests financial stability and flexibility, allowing the company to navigate market fluctuations effectively.

Strategic Partnerships

Strategic partnerships enhance resource access and operational efficiency, supporting long-term growth and competitive positioning.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests potential market or operational challenges, which could impact long-term financial performance.

Decreasing Profit Margins

Decreasing profit margins indicate challenges in converting revenue into profit, potentially affecting long-term profitability.

Negative Cash Flow Growth

Negative cash flow growth suggests difficulties in cash generation, which may limit the company's ability to invest in growth opportunities.

China Petroleum & Chemical Business Overview & Revenue Model

Company Description

China Petroleum & Chemical Corporation, commonly known as Sinopec, is one of the largest integrated energy and chemical companies in China. Operating in the oil and gas sector, Sinopec is primarily engaged in the exploration, production, refining, and marketing of petroleum and petrochemical products. The company operates through several segments, including refining, marketing and distribution, and exploration and production, offering a wide range of products such as gasoline, diesel, jet fuel, and various chemical products.

How the Company Makes Money

Sinopec 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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.91T	3.07T	3.21T	3.32T	2.74T	2.11T
Gross Profit	593.64B	502.78B	641.45B	632.19B	662.83B	404.89B
EBITDA	152.84B	207.68B	214.65B	219.97B	238.73B	110.42B
Net Income	35.61B	48.94B	58.31B	66.93B	71.97B	33.44B
Balance Sheet
Total Assets	2.14T	2.08T	2.02T	1.95T	1.89T	1.73T
Cash, Cash Equivalents and Short-Term Investments	162.33B	148.20B	165.76B	148.56B	227.93B	196.79B
Total Debt	529.87B	475.69B	440.23B	356.70B	315.52B	300.45B
Total Liabilities	1.16T	1.11T	1.07T	1.01T	974.18B	850.95B
Stockholders Equity	824.57B	815.82B	802.99B	784.71B	774.18B	741.49B
Cash Flow
Free Cash Flow	34.43B	10.15B	-10.02B	-37.48B	80.25B	49.64B
Operating Cash Flow	168.11B	149.36B	161.47B	116.27B	225.17B	167.52B
Investing Cash Flow	-142.20B	-161.24B	-155.87B	-95.01B	-145.20B	-102.20B
Financing Cash Flow	-41.00B	-19.24B	22.73B	-39.70B	-57.94B	-36.95B

China Petroleum & Chemical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0386, the sentiment is Neutral. The current price of 4.34 is below the 20-day moving average (MA) of 4.45, above the 50-day MA of 4.29, and above the 200-day MA of 4.10, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 10.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0386.

China Petroleum & Chemical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1088	78 Outperform	$922.67B	14.25	―	9.07%	-13.87%	-15.41%
0857	73 Outperform	$1.86T	8.94	10.16%	6.22%	-6.92%	-2.57%
1171	72 Outperform	$133.19B	8.43	―	7.95%	0.80%	-35.81%
0883	68 Neutral	€998.92B	7.04	17.50%	6.65%	-9.81%	-8.84%
0386	67 Neutral	$693.46B	13.25	―	5.74%	-10.02%	-27.89%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1898	64 Neutral	HK$176.01B	8.50	10.99%	4.56%	-3.42%	-18.73%

China Petroleum & Chemical Corporate Events

Sinopec Corp. Proposes New Independent Director to Enhance Board Diversity

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.

Sinopec Corp. Announces Supplemental Notice for 2025 EGM

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.

Sinopec Corp. Announces Extraordinary General Meeting for Corporate Amendments

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.

Sinopec Releases Third Quarterly Report for 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.

Sinopec Announces Governance Overhaul and Capital Reduction

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.

Sinopec Corp. Schedules Board Meeting to Review Q3 2025 Results

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.