China Petroleum & Chemical (0386) AI Stock Analysis

• Market Cap: $712.84B
• Dividend Yield: 7.07%
• Average Volume (3M): 164.96M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.68
• Revenue Growth: -9.86%
• EPS Growth: -40.13%
• Country: HK
• Employees: 355,952
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.10
• Shares Outstanding: 24,012,975,000
• 10 Day Avg. Volume: 106,765,988
• 30 Day Avg. Volume: 164,959,313
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 6.63
• 1Y Price Target: $4.06
• Price Target Upside: -7.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: HK$5.00 ▲(13.38% Upside)

The overall stock score is primarily influenced by the solid balance sheet and reasonable valuation. However, challenges in profitability and cash flow generation, combined with overbought technical indicators, temper the score. Investors should watch for improvements in operational efficiency and be wary of potential price corrections.

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 Business Overview & Revenue Model

Company Description

China Petroleum & Chemical Corporation, also known as Sinopec, is one of the world's largest oil refining, gas, and petrochemical conglomerates, headquartered in Beijing, China. Operating primarily in the energy sector, the company engages in the exploration, production, and marketing of oil and natural gas, as well as the manufacturing and distribution of petrochemical products. Sinopec's core services include refining crude oil into various petroleum products, producing chemicals, and distributing these products through their extensive network.

How the Company Makes Money

Sinopec makes money through multiple revenue streams, primarily driven by its upstream, midstream, and downstream operations. Upstream activities include the exploration and production of crude oil and natural gas, which are then supplied to its refining operations. The midstream segment involves the transportation and storage of these raw materials. In the downstream sector, Sinopec refines crude oil into a wide range of petroleum products, such as gasoline, diesel, and jet fuel, which are sold to consumers and businesses. Additionally, the company produces and sells petrochemical products like synthetic fibers, rubber, and plastics. Sinopec's extensive retail network, including service stations across China, plays a key role in distributing these products. Strategic partnerships, government contracts, and investments in technology and infrastructure further enhance its revenue-generating capabilities.

China Petroleum & Chemical Financial Statement Overview

Summary

China Petroleum & Chemical shows a mixed financial performance. While the balance sheet is stable with a solid equity base, profitability has faced challenges due to declining revenue and margins. Cash flow generation is inconsistent, reflecting potential operational inefficiencies.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02T	3.07T	3.21T	3.32T	2.74T	2.11T
Gross Profit	614.38B	502.78B	641.45B	632.19B	548.54B	404.89B
EBITDA	163.74B	207.68B	214.65B	219.97B	238.73B	110.42B
Net Income	44.19B	48.94B	58.31B	66.93B	71.97B	33.44B
Balance Sheet
Total Assets	2.12T	2.08T	2.02T	1.95T	1.89T	1.73T
Cash, Cash Equivalents and Short-Term Investments	159.43B	148.20B	165.76B	148.56B	227.93B	196.79B
Total Debt	530.58B	475.69B	440.23B	356.70B	315.52B	300.45B
Total Liabilities	1.13T	1.11T	1.07T	1.01T	974.18B	850.95B
Stockholders Equity	830.72B	815.82B	802.99B	784.71B	774.18B	741.49B
Cash Flow
Free Cash Flow	36.13B	10.15B	-10.02B	-37.48B	80.25B	49.64B
Operating Cash Flow	171.25B	149.36B	161.47B	116.27B	225.17B	167.52B
Investing Cash Flow	-150.60B	-161.24B	-155.87B	-95.01B	-145.20B	-102.20B
Financing Cash Flow	-29.05B	-19.24B	22.73B	-39.70B	-57.94B	-36.95B

China Petroleum & Chemical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 4.41 is below the 20-day moving average (MA) of 4.45, above the 50-day MA of 4.33, and above the 200-day MA of 4.12, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 43.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0857	79 Outperform	$1.66T	7.94		6.89%	-7.86%	1.52%
0883	79 Outperform	€908.12B	5.90	19.25%	7.47%	-0.55%	9.17%
1088	78 Outperform	$807.02B	11.41	12.78%	6.91%	-7.73%	-6.97%
1898	78 Outperform	HK$159.42B	6.60	11.38%	5.45%	-4.04%	-12.32%
1171	61 Neutral	HK$120.91B	6.00	22.05%	10.06%	2.87%	―
0386	58 Neutral	$712.84B	14.27		7.07%	-9.86%	-40.13%
Sector *	57 Neutral	HK$79.91B	1.39	9.82%	5.37%	0.78%	-46.91%

China Petroleum & Chemical Corporate Events

Sinopec Reports Significant Profit Decline in First Half of 2025

China Petroleum & Chemical Corporation announced an estimated net profit for the first half of 2025 to be between RMB 20.1 billion and RMB 21.6 billion, marking a significant decrease of 39.5% to 43.7% compared to the same period in 2024. This decline is attributed to lower international crude oil prices, intense market competition, and low chemical margins, despite the company’s efforts to optimize operations and control costs.

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 Reports Mixed Operational Results for H1 2025

Sinopec Corp. reported its operational statistics for the first half of 2025, showing a 2% increase in oil and gas production compared to the previous year. Despite a slight decline in crude oil production, natural gas production rose by 5.1%. The company experienced a decrease in refinery throughput by 5.3%, with notable declines in gasoline and diesel production, although there was an increase in kerosene and light chemical feedstock. The production of ethylene, synthetic resins, and synthetic rubbers saw significant growth, reflecting a shift towards higher value-added products. These changes indicate Sinopec’s strategic adjustments in response to market demands and its efforts to enhance its product portfolio.

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 Supervisory Committee Members

China Petroleum & Chemical Corporation announced the resignation of two supervisors, Mr. Tan Wenfang and Mr. Zhang Chunsheng, from its Supervisory Committee due to their ages. The company expressed gratitude for their diligent service and confirmed there were no disagreements or issues needing shareholder attention, indicating a smooth transition in its supervisory roles.

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 Proposes New Non-Executive Directors to Strengthen Leadership

Sinopec Corp. has announced the proposed election of Mr. Hou Qijun and Mr. Cai Yong as non-executive directors for its ninth board session, pending shareholder approval. This move is expected to enhance the company’s leadership with their extensive experience in the petroleum industry, potentially impacting Sinopec’s strategic direction 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 Corp. Announces 2025 Extraordinary General Meeting for Board Elections

China Petroleum & Chemical Corporation (Sinopec Corp.) has announced its first extraordinary general meeting for 2025, scheduled for August 21 in Beijing. The meeting will focus on electing two non-executive directors, Mr. Hou Qijun and Mr. Cai Yong, to the ninth session of the company’s board. This election is part of Sinopec’s ongoing efforts to strengthen its corporate governance and leadership structure.

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 Corp. Chairman Resigns, Leadership Transition Announced

China Petroleum & Chemical Corporation announced the resignation of its Chairman, Mr. Ma Yongsheng, due to age. Mr. Ma has been instrumental in enhancing corporate governance and driving innovation during his tenure. Mr. Zhao Dong, the Vice Chairman, will temporarily assume the duties of Chairman until a new leader is elected, ensuring continuity in leadership and 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 Board Composition and Committee Roles

China Petroleum & Chemical Corporation has announced the composition of its board of directors and their roles within various committees. This announcement provides insights into the company’s governance structure, which could impact its strategic direction and operational efficiency, potentially influencing stakeholder confidence and market positioning.

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 Corp. Reports Strong Shareholder Support at Recent Meetings

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

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

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

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

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.