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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

China Petroleum & Chemical

(OTC:0386)

Rating:69Neutral
Price Target:
HK$4.50
▲(5.88%Upside)
China Petroleum & Chemical presents a solid investment case with a stable financial position and attractive valuation. The company's strong balance sheet and high dividend yield are key strengths. However, challenges in revenue growth and profitability, along with inconsistent cash flow generation, may impact future performance. Technical analysis points to a neutral to slightly positive outlook, suggesting potential for moderate gains.
Positive Factors
Dividend Yield
Analyst maintains a BUY recommendation for Sinopec due to its attractive dividend yield of 7% and potential for downstream recovery.
Transformation and Innovation
Sinopec is actively transforming into a greener, integrated energy service provider, which includes refined oil products, natural gas, hydrogen, EV charging & battery swapping, as well as renewables.
Negative Factors
Market Performance
3Q24 results a big miss; weak refinery & marketing segment exacerbated by inventory loss.

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 through multiple streams, primarily from its upstream, midstream, and downstream operations. In the upstream sector, the company earns money by exploring and producing crude oil and natural gas. The midstream operations involve the transportation and storage of these resources. However, the most significant revenue comes from the downstream sector, where Sinopec refines crude oil into various petroleum products such as gasoline, diesel, and jet fuel. Additionally, the company produces and markets petrochemical products, including plastics, synthetic fibers, and fertilizers. Sinopec also benefits from strategic partnerships and joint ventures both within China and internationally, enhancing its market presence and distribution capabilities. These diversified operations and strategic collaborations help Sinopec maintain a robust revenue model.

China Petroleum & Chemical Financial Statement Overview

Summary
China Petroleum & Chemical demonstrates a mixed financial performance with moderate profitability and strong equity position. Revenue and profit margins have faced recent challenges, while the balance sheet remains stable with manageable leverage. Cash flow generation has been inconsistent, highlighting potential operational challenges. Overall, the company shows resilience but needs to address revenue and margin pressures.
Income Statement
60
Neutral
The company has seen fluctuating revenue with a recent decline in total revenue from 2023 to 2024. Gross profit margin is healthy but has decreased slightly over the period. Net profit margin has shown a slight decline, and there is a clear drop in EBIT and EBITDA margins, indicating potential cost pressures or operational inefficiencies.
Balance Sheet
75
Positive
The balance sheet reflects a relatively stable financial structure with an acceptable debt-to-equity ratio. Stockholders' equity has shown growth, indicating a solid equity base. The equity ratio remains strong, suggesting a stable financial position, but total debt has increased over the years, which could pose future risks.
Cash Flow
55
Neutral
The cash flow statement shows fluctuating free cash flow with a recent positive turn in 2024. The operating cash flow to net income ratio has been above 1 in recent years, indicating good cash generation. However, the free cash flow to net income ratio has been inconsistent, suggesting challenges in maintaining free cash flow.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.19T3.07T3.21T3.32T2.74T2.11T
Gross Profit
624.26B502.78B641.45B523.51B548.54B404.89B
EBIT
83.02B70.69B86.83B117.06B152.45B-70.89B
EBITDA
178.30B207.68B214.65B219.97B238.73B36.07B
Net Income Common Stockholders
59.27B48.94B58.31B66.15B71.97B33.44B
Balance SheetCash, Cash Equivalents and Short-Term Investments
135.05B148.20B163.54B148.56B227.93B196.79B
Total Assets
1.48T2.08T2.02T1.95T1.89T1.73T
Total Debt
189.24B475.69B440.23B356.70B315.52B300.45B
Net Debt
78.26B384.40B318.47B263.26B206.93B212.89B
Total Liabilities
626.57B1.11T1.07T1.01T974.18B850.95B
Stockholders Equity
727.40B815.82B802.99B784.71B774.18B741.49B
Cash FlowFree Cash Flow
38.21B10.15B-10.02B-37.48B80.25B49.64B
Operating Cash Flow
176.18B149.36B161.47B116.27B225.17B167.52B
Investing Cash Flow
-141.44B-161.24B-155.87B-95.01B-145.20B-102.20B
Financing Cash Flow
-7.27B-19.24B22.73B-39.70B-57.94B-36.95B

China Petroleum & Chemical Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.25
Price Trends
50DMA
3.92
Positive
100DMA
4.01
Positive
200DMA
4.19
Positive
Market Momentum
MACD
0.07
Negative
RSI
72.07
Negative
STOCH
58.67
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 4.25 is above the 20-day moving average (MA) of 4.09, above the 50-day MA of 3.92, and above the 200-day MA of 4.19, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 72.07 is Negative, neither overbought nor oversold. The STOCH value of 58.67 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$732.29B11.44
3.59%-7.72%-26.66%
58
Neutral
$7.56B3.50-4.45%10.15%0.79%-49.51%
$17.81B5.5612.03%11.62%
$105.04B11.5212.78%7.25%
$222.59B7.04
7.00%
$15.17B5.3022.05%6.88%
€101.82B5.7919.25%7.60%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0386
China Petroleum & Chemical
4.25
0.08
1.85%
CCOZF
China Coal Energy Co
1.06
-0.15
-12.40%
CUAEF
China Shenhua Energy Co
4.40
-0.25
-5.38%
PCCYF
PetroChina Company
0.88
-0.07
-7.37%
YZCHF
Yankuang Energy Group Company Limited Class H
1.08
-0.34
-23.94%
DE:NC2B
CNOOC Limited
2.18
-0.22
-9.17%

China Petroleum & Chemical Corporate Events

Sinopec Corp. Reports Strong Shareholder Support at Recent Meetings
May 28, 2025

Sinopec Corp. recently held its annual general meeting for 2024 and the first class meetings for A and H shareholders for 2025. The meetings, chaired by Chairman Ma Yongsheng, saw significant shareholder participation, with a high percentage of voting shares represented. The company reported that no shareholders were required to abstain from voting, and no opposition to resolutions was noted, indicating strong shareholder support and alignment with the company’s strategic direction.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Announces Final Dividend for 2024
May 28, 2025

China Petroleum & Chemical Corporation has announced a final cash dividend of RMB 0.14 per share for the financial year ending December 31, 2024, with the payment scheduled for June 27, 2025. The announcement includes details on the exchange rate for Hong Kong dollars, withholding tax implications for non-resident shareholders, and the timeline for dividend distribution, reflecting the company’s commitment to shareholder returns and its operational stability.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Completes Exchangeable Bonds Issuance
May 20, 2025

China Petroleum & Chemical Corporation announced the completion of the issuance of exchangeable bonds by its controlling shareholder, Sinopec Group, through its subsidiary Deep Development 2025 Limited. The issuance, which took place on the Hong Kong Stock Exchange, will not affect the company’s control, operations, or governance, ensuring stability for stakeholders while adhering to disclosure obligations.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Group Increases Stake in China Petroleum & Chemical Corporation
May 14, 2025

China Petroleum & Chemical Corporation announced that its controlling shareholder, Sinopec Group, has increased its shareholding in the company by acquiring 302,004,000 H shares, representing approximately 0.25% of the total issued shares, for HKD 1,232,176,320. This move is part of a broader Shareholding Increase Plan, and the company will continue to monitor and disclose any further increases in shareholding by Sinopec Group and its concert party, which may impact the company’s market positioning and stakeholder interests.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Group to Issue HK$7.75 Billion Exchangeable Bonds
May 14, 2025

China Petroleum & Chemical Corporation announced that its controlling shareholder, Sinopec Group, will issue exchangeable bonds worth HK$7.75 billion through its subsidiary Deep Development 2025 Limited. The issuance aims to refinance existing offshore indebtedness and will not affect the company’s control, production, or governance. The bonds, with a 0.75% coupon rate and a 7-year term, will be listed on the Hong Kong Stock Exchange, using H shares held by Sinopec Century Bright Capital Investment Limited as underlying shares.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Announces Resignation of Executive Director Yu Baocai
Apr 30, 2025

China Petroleum & Chemical Corporation announced the resignation of Mr. Yu Baocai from his roles as an executive director and senior vice president due to his age. The company expressed gratitude for his diligent service and confirmed that there are no disagreements or issues related to his departure that need to be addressed with shareholders.

Sinopec Announces Board Composition and Committee Roles
Apr 30, 2025

China Petroleum & Chemical Corporation has announced the composition of its board of directors and the roles within its five board committees. This announcement provides clarity on the leadership structure, which is crucial for stakeholders to understand the company’s governance and strategic direction.

Sinopec Releases First Quarterly Report for 2025
Apr 28, 2025

China Petroleum & Chemical Corporation has released its first quarterly report for 2025, highlighting its adherence to regulatory requirements set by the Hong Kong Stock Exchange. This announcement underscores the company’s commitment to transparency and compliance, which may positively influence its reputation and stakeholder trust.

Sinopec Announces Capital Increase in Sinopec Capital
Apr 28, 2025

China Petroleum & Chemical Company (Sinopec) and its controlling shareholder, Sinopec Group, have announced a capital increase in Sinopec Capital. The capital increase, totaling RMB1,990 million, will be funded by Sinopec and Sinopec Group, with contributions of RMB975.1 million and RMB1,014.9 million respectively. This move will raise Sinopec Capital’s registered capital from RMB10,000 million to RMB11,990 million, while maintaining the existing equity interests of 49% for Sinopec and 51% for Sinopec Group. The capital increase is aimed at supporting Sinopec Capital’s investment plans, including significant investments in the hydrogen energy fund and the Central Enterprises Strategic Emerging Industries Development Fund, reflecting the company’s strategic focus on emerging industries.

Sinopec Forms Joint Venture to Boost Petrochemical Operations
Apr 28, 2025

China Petroleum & Chemical Company (Sinopec) has announced the formation of a joint venture with its subsidiary FPCL and an independent third party, AAS, to establish Fujian Sinopec Aramco Refining and Petrochemical Co., Ltd. The joint venture, with a registered capital of RMB28.8 billion, aims to enhance Sinopec’s operations in oil refining and petrochemical production. Sinopec and FPCL will hold 75% of the joint venture’s capital, while AAS will contribute the remaining 25%. This strategic move is expected to strengthen Sinopec’s market position and expand its capabilities in the petrochemical industry.

Sinopec Corp. Schedules Board Meeting to Review Q1 2025 Results
Apr 14, 2025

China Petroleum & Chemical Corporation (Sinopec Corp.) has announced a board meeting scheduled for April 28, 2025, to review and potentially approve the company’s first quarterly results for the year. This meeting could provide insights into Sinopec’s financial performance and strategic direction, impacting stakeholders and potentially influencing market perceptions of the company’s stability and growth prospects.

Sinopec Group to Boost Stake in China Petroleum & Chemical
Apr 8, 2025

China Petroleum & Chemical Corporation announced that its controlling shareholder, Sinopec Group, plans to increase its shareholdings in the company by up to RMB3 billion within the next year. This move, financed through internal funds and special loans, reflects confidence in the company’s growth prospects and aims to strengthen its market position. The plan complies with relevant securities laws, and the company will ensure timely disclosure of progress. However, there are risks associated with market changes that could affect the plan’s success.

Sinopec Corp. Announces 2024 AGM and Key Financial Resolutions
Apr 7, 2025

China Petroleum & Chemical Corporation (Sinopec Corp.) has announced its Annual General Meeting (AGM) for 2024 and the first H Shareholders Class Meeting for 2025, scheduled for May 28, 2025, in Beijing. Key resolutions to be discussed include the approval of financial reports for 2024, a profit distribution plan with a final cash dividend of RMB0.14 per share, the re-appointment of KPMG as auditors, and authorization for the issuance of debt financing instruments up to RMB80 billion. These measures are aimed at enhancing the company’s financial flexibility and operational capabilities.

Sinopec Announces Final Dividend for 2024
Apr 7, 2025

China Petroleum & Chemical Corporation announced a final cash dividend of RMB 0.14 per share for the financial year ending December 31, 2024, with shareholder approval scheduled for May 28, 2025. The announcement highlights the company’s commitment to returning value to shareholders and provides details on dividend distribution, including withholding tax information for non-resident shareholders, reflecting its adherence to international tax agreements.

Sinopec Corp. Releases 2024 Annual Financial Results
Mar 23, 2025

Sinopec Corp. has announced its audited financial results for the year ending December 31, 2024. The results, which comply with the Hong Kong Stock Exchange’s listing requirements, are available in both Chinese and English on the company’s website and the stock exchange’s site. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and operational performance, impacting its market positioning and future strategies.

Sinopec Declares Final Dividend for 2024
Mar 23, 2025

China Petroleum & Chemical Corporation has announced a final cash dividend of RMB 0.14 per share for the financial year ending December 31, 2024. The dividend will be paid on June 27, 2025, with specific tax implications for non-resident shareholders based on their country of residence and applicable tax treaties with China. This announcement reflects the company’s commitment to returning value to its shareholders and may influence its market positioning and stakeholder relations.

Sinopec Corp. Announces Capital Reduction Following Share Repurchase
Mar 23, 2025

Sinopec Corp. has announced a reduction in its registered capital following the completion of a share repurchase program, which saw the cancellation of over 458 million shares. This move, approved by the board, aims to safeguard corporate value and protect shareholders’ interests. The company’s Articles of Association will be amended to reflect the new capital structure, pending approval at the 2024 annual general meeting. This strategic decision is expected to enhance Sinopec’s financial positioning and align its capital structure with its operational goals.

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.