China Petroleum & Chemical (0386) AI Stock Analysis

• Market Cap: HK$653.48B
• Dividend Yield: 6.06%
• Average Volume (3M): 106.38M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.64
• Revenue Growth: -9.86%
• EPS Growth: -37.24%
• Country: HK
• Employees: 355,952
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.12
• Shares Outstanding: 23,945,352,000
• 10 Day Avg. Volume: 74,592,060
• 30 Day Avg. Volume: 106,375,816
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$4.36
• Price Target Upside: 6.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: HK$4.50 ▲(9.49% Upside)

The overall stock score of 60 reflects a mixed outlook. The company's stable balance sheet and attractive dividend yield are positive factors. However, financial performance challenges and bearish technical indicators weigh on the score.

Positive Factors

Negative Factors

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, 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 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 mixed financial performance. While the balance sheet is stable with a solid equity base, revenue and profit margins have faced challenges. Cash flow generation is inconsistent, indicating potential operational issues.

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	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: 4.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 4.11 is below the 20-day moving average (MA) of 4.13, below the 50-day MA of 4.22, and above the 200-day MA of 4.05, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 72.65 is Neutral, 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
0883	79 Outperform	€907.89B	6.38	17.50%	7.37%	-9.81%	-8.84%
1088	78 Outperform	$821.78B	12.34	13.48%	6.19%	-9.92%	-7.10%
1898	78 Outperform	$152.20B	7.80	11.38%	4.67%	-3.42%	-18.73%
0857	72 Outperform	$1.62T	7.87	10.49%	7.07%	-10.41%	-3.12%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1171	61 Neutral	$131.53B	8.55	19.80%	10.58%	0.80%	-35.81%
0386	60 Neutral	HK$653.48B	13.06	4.35%	6.06%	-9.86%	-37.24%

China Petroleum & Chemical Corporate Events

Sinopec Corp. Releases 2025 Interim Results

Sinopec Corp. announced its unaudited interim results for the first half of 2025, showcasing the company’s financial performance and strategic direction. The publication of these results aligns with regulatory requirements, providing stakeholders with insights into the company’s operations and future prospects, although the announcement includes forward-looking statements that caution about potential uncertainties.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Declares Interim Dividend with Tax Details for Non-Residents

China Petroleum & Chemical Corporation announced an interim cash dividend of RMB 0.088 per share for the period ending June 30, 2025, payable in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.099428. The announcement outlines the withholding tax details for non-resident shareholders, with a standard 10% tax rate applied, impacting stakeholders by providing clarity on dividend distribution and tax obligations.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Corp. Elects New Directors at 2025 Extraordinary General Meeting

Sinopec Corp. held its first extraordinary general meeting for 2025, where shareholders approved the election of Mr. Hou Qijun and Mr. Cai Yong as non-executive directors. The meeting was conducted in compliance with relevant legal and procedural requirements, reflecting the company’s commitment to governance standards.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Announces New Chairman and Board Committee Adjustments

China Petroleum & Chemical Corporation has announced the appointment of Mr. Hou Qijun as the new Chairman of the Board, effective from August 21, 2025. This leadership change is accompanied by adjustments in the composition of the Board’s special committees, with Mr. Hou also taking on the role of Chairman of the Strategy Committee and Mr. Zhao Dong appointed as Chairman of the Sustainable Development Committee. These changes are expected to influence the company’s strategic direction and reinforce its commitment to sustainable development.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 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 the roles within its five board committees. This announcement provides clarity on the leadership structure, potentially impacting the company’s strategic direction and governance, which is crucial for stakeholders monitoring Sinopec’s corporate governance and operational strategies.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 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 Interim Results

Sinopec Corp. has announced a board meeting scheduled for August 21, 2025, to review and potentially approve the interim financial results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could influence its market positioning and stakeholder confidence.

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 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.