China Petroleum & Chemical Corporation Class H (HK:0386)
:0386
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China Petroleum & Chemical
(0386)
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Rating:55Neutral
Price Target:
HK$4.50
â–¼(-1.32% Downside)
Action:ReiteratedDate:05/01/26
Overall score reflects mixed financial performance (thin profitability, cooling returns, and volatile/low free cash flow) and weak-to-neutral technicals (negative MACD and below key moving averages). These are partially offset by a relatively attractive dividend yield and a moderate P/E valuation.
Positive Factors
Integrated, diversified business model
Sinopec's vertically integrated model (E&P, refining, chemicals, marketing, trading) creates multiple, linked revenue streams that smooth cycles and capture value across feedstock-to-product chains. Over months, this reduces earnings volatility versus single-segment peers.
Negative Factors
Thin net margins and cooled ROE
Persistently low net margins and a sharply lower ROE constrain the company's ability to convert sales into shareholder returns. Structurally thin profitability limits retained earnings, reduces reinvestment flexibility, and leaves less buffer for cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated, diversified business model
Sinopec's vertically integrated model (E&P, refining, chemicals, marketing, trading) creates multiple, linked revenue streams that smooth cycles and capture value across feedstock-to-product chains. Over months, this reduces earnings volatility versus single-segment peers.
Read all positive factors
China Petroleum & Chemical (0386) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$710.10B
Dividend Yield5.52%
Average Volume (3M)113.69M
Price to Earnings (P/E)6.8
Beta (1Y)0.64
Revenue Growth-7.22%
EPS Growth-15.49%
CountryHK
Employees355,952
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.30
Shares Outstanding23,782,602,000
10 Day Avg. Volume125,486,344
30 Day Avg. Volume113,694,032
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)0.61
Price to Sales (P/S)0.21
P/FCF Ratio15.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.16Price Target Upside13.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.36
Revenue Forecast (FY)HK$3.08T
China Petroleum & Chemical Business Overview & Revenue Model
Company Description
China 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, ...
How the Company Makes Money
Sinopec generates revenue primarily by selling energy and chemical products across an integrated value chain. Key revenue streams typically include: (1) Refining and marketing: purchasing crude oil (and producing some internally), refining it into...
China Petroleum & Chemical Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
62
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.70T | 2.44T | 3.07T | 3.21T | 3.32T | 2.74T |
| Gross Profit | 389.69B | 74.08B | 502.78B | 641.45B | 632.19B | 662.83B |
| EBITDA | 141.09B | 110.18B | 207.68B | 214.65B | 219.97B | 238.73B |
| Net Income | 36.07B | 31.64B | 48.94B | 58.31B | 66.93B | 71.97B |
Balance Sheet | ||||||
| Total Assets | 2.25T | 2.15T | 2.08T | 2.02T | 1.95T | 1.89T |
| Cash, Cash Equivalents and Short-Term Investments | 172.61B | 150.94B | 148.20B | 165.76B | 148.56B | 227.93B |
| Total Debt | 573.00B | 597.72B | 475.69B | 440.23B | 356.70B | 315.52B |
| Total Liabilities | 1.26T | 1.17T | 1.11T | 1.07T | 1.01T | 974.18B |
| Stockholders Equity | 827.51B | 827.82B | 815.82B | 802.99B | 784.71B | 774.18B |
Cash Flow | ||||||
| Free Cash Flow | 11.28B | 33.78B | 10.15B | -10.02B | -37.48B | 80.25B |
| Operating Cash Flow | 151.96B | 163.95B | 149.36B | 161.47B | 116.27B | 225.17B |
| Investing Cash Flow | -133.21B | -148.17B | -161.24B | -155.87B | -95.01B | -145.20B |
| Financing Cash Flow | -25.99B | -25.57B | -19.24B | 22.73B | -39.70B | -57.94B |
China Petroleum & Chemical Technical Analysis
Negative
4.56
Price Trends
5.02
Negative
4.84
Negative
4.53
Positive
Market Momentum
-0.10
Negative
40.28
Neutral
28.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0386, the sentiment is Negative. The current price of 4.56 is below the 20-day moving average (MA) of 4.60, below the 50-day MA of 5.02, and above the 200-day MA of 4.53, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 40.28 is Neutral, neither overbought nor oversold. The STOCH value of 28.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0386.
China Petroleum & Chemical Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$1.41T | 4.40 | 15.25% | 6.76% | -3.90% | -11.54% | |
77 Outperform | HK$1.07T | 17.31 | 12.12% | 8.97% | -6.04% | -7.87% | |
71 Outperform | HK$2.52T | 8.95 | 10.04% | 6.32% | -1.41% | -2.26% | |
67 Neutral | HK$68.38B | 11.07 | 8.25% | 3.59% | 4.22% | 22.46% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
55 Neutral | HK$710.10B | 6.79 | 4.45% | 5.52% | -7.22% | -15.49% | |
51 Neutral | HK$30.31B | 6.93 | -3.91% | 1.65% | -13.85% | -626.58% |
* Energy Sector Average
HK:0386
China Petroleum & Chemical
4.60
0.84
22.34%
HK:2883
China Oilfield Services
9.46
3.64
62.49%
HK:1088
China Shenhua Energy Co
47.84
21.20
79.58%
HK:0857
PetroChina Company
11.68
6.17
111.79%
HK:0338
Sinopec Shanghai Petrochemical Co
1.32
0.16
13.89%
HK:0883
CNOOC Limited
28.56
13.14
85.20%
China Petroleum & Chemical Corporate Events
Sinopec Adds Board Nomination and Capital Mandates to 2025 AGM Agenda
Apr 28, 2026
China Petroleum Chemical Corporation has issued a supplemental notice confirming that its 2025 annual general meeting and the first H shareholders meeting for 2026 will proceed as scheduled in Beijing, while adding an extra board election item to...
Sinopec Reshapes Senior Management and Proposes New Executive Director
Apr 28, 2026
China Petroleum Chemical Corporation has appointed Chen Yanbin as senior vice president and named Zhang Zheng as secretary to the board, while Chen Yang will serve as the company’s representative on securities matters for the Shanghai Stock...
Sinopec Files First-Quarter 2026 Report With Hong Kong Regulators
Apr 28, 2026
China Petroleum Chemical Corporation has issued its first quarterly report for 2026 as an overseas regulatory announcement in Hong Kong. The filing, made in compliance with Hong Kong listing and securities regulations, formally notifies investors...
Sinopec Announces Routine Senior Executive Resignation
Apr 21, 2026
China Petroleum Chemical Corporation announced the resignation of executive director and senior vice president Lv Lianggong, who stepped down due to age. The board emphasized that Lv has no disagreements with the company, noted there are no other...
Sinopec Outlines Board Composition and Committee Roles
Apr 21, 2026
China Petroleum Chemical Corporation has updated the market on the current composition of its board of directors, detailing the mix of executive, non-executive, independent non-executive and employee representative directors. The announcement als...
Sinopec Sets Final 2025 Dividend and Details Withholding Tax for H-Shareholders
Apr 20, 2026
China Petroleum Chemical Corporation has declared a final ordinary cash dividend of RMB 0.112 per share for the financial year ended 31 December 2025, with shareholder approval scheduled for 13 May 2026. The Hong Kong share register timetable set...
Sinopec Sets 2025 AGM to Approve Dividend, Capital Changes and Wider Board Mandates
Apr 20, 2026
Sinopec has called its 2025 annual general meeting for 13 May 2026 in Beijing, alongside its first H share and first A share shareholders’ meetings for 2026, to seek investor approval on a broad agenda of operational, financial and governanc...
Sinopec Sets Board Meeting to Review First-Quarter 2026 Results
Apr 16, 2026
China Petroleum Chemical Corporation has scheduled a board meeting for 28 April 2026 to review and potentially approve its first-quarter 2026 financial results. The timing signals the company’s forthcoming disclosure of early-year performan...
Sinopec Parent Lifts Stake to Nearly 70% in Listed Unit
Apr 8, 2026
China Petroleum Chemical Corporation has received notice that its controlling shareholder, China Petrochemical Corporation, has completed a planned increase in its holdings of the company’s A and H shares. The move, executed through Sinopec...
Sinopec Proposes Final 2025 Dividend and Details Withholding Tax for H-Shareholders
Mar 22, 2026
China Petroleum Chemical Corporation has proposed a final ordinary cash dividend of RMB 0.112 per share for the financial year ended 31 December 2025, with shareholder approval pending. The Hong Kong dollar equivalent, applicable exchange rate, a...
Sinopec Details Board Composition and Committee Structure
Mar 22, 2026
China Petroleum Chemical Corporation has disclosed the current composition of its board of directors, detailing the mix of executive, non-executive and independent non-executive directors, including an employee representative director. The announ...
Sinopec Cuts Registered Capital After Share Cancellations, Adjusts A/H Share Mix
Mar 22, 2026
Sinopec has completed a new phase of its 2025 share repurchase programme, cancelling all repurchased A and H shares and reducing its total share count from about 121.18 billion to 120.93 billion. The move is positioned as a step to protect corpora...
Sinopec Redirects A-Share Proceeds to Natural Gas and Maoming Refining Expansion
Mar 22, 2026
Sinopec Corp. has disclosed the use of nearly RMB12 billion in proceeds from a recent non-public A-share issuance, most of which has been allocated to refinery upgrades, hydrogen purification, polyolefin elastomer capacity, and LNG infrastructure,...
Sinopec Publishes Audited 2025 Annual Results and Full Report
Mar 22, 2026
China Petroleum Chemical Corporation has released its audited annual results for the year ended 31 December 2025, publishing the full 2025 annual report on both the Hong Kong Stock Exchange and company websites. The disclosure, made in both Chine...
Sinopec Appoints Northwest Oilfield Executive as Employee Representative Director
Mar 19, 2026
China Petroleum Chemical Corporation has appointed Wang Shijie as an employee representative director to the ninth session of its board, with his term running from 19 March 2026 until the end of the current board’s tenure. Wang, a professor...
Sinopec Updates Board Composition and Key Committee Roles
Mar 19, 2026
China Petroleum Chemical Corporation has released an updated list of its board of directors, detailing the composition of non-executive, executive and independent non-executive directors, including an employee representative director. The disclos...
Sinopec Sets March 2026 Board Meeting to Approve 2025 Annual Results
Mar 9, 2026
China Petroleum Chemical Corporation has scheduled a board meeting for 20 March 2026 to review and potentially approve its annual financial results for the year ended 31 December 2025. The timing signals that Sinopec is entering its regular earni...
Sinopec Chief Geologist Resigns, Board Signals Stable Leadership Transition
Feb 27, 2026
China Petroleum Chemical Corporation announced the resignation of Chief Geologist Guo Xusheng, who stepped down due to age, marking a change in a key technical leadership role at the state-backed energy and petrochemicals group. The board noted t...
Sinopec Announces Resignation of Executive Director and Senior Vice President Li Yonglin
Feb 13, 2026
Sinopec announced that executive director and senior vice president Li Yonglin has resigned from his roles at the company, including his position on the board’s strategy committee, citing a change in working arrangement. The board noted that...
Sinopec Updates Board Composition and Committee Roles in Governance Notice
Feb 13, 2026
China Petroleum Chemical Corporation has published an updated list of its board of directors, detailing the division between non-executive, executive, and independent non-executive members and confirming their current composition as of 13 Februar...
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.