SINOPEC Engineering (Group) Co., Ltd. Class H (HK:2386)
:2386
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SINOPEC Engineering (Group) Co., Ltd. Class H
(2386)
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Rating:60Neutral
Price Target:
HK$6.50
▼(-14.47% Downside)
Action:DowngradedDate:03/19/26
The score is supported by solid financial stability (low leverage) and improving 2025 cash flow after a weak 2024, plus a high dividend yield. It is held back primarily by bearish technicals (below major moving averages with negative MACD) and the notable margin compression in 2025 that raises execution and contract-economics risk.
Positive Factors
Revenue Growth
Sustained top-line expansion and a marked acceleration in 2025 indicate strong demand for EPC services and successful contract wins. Durable revenue growth supports scale economics, backlog visibility and the ability to invest in capabilities that underpin multi-quarter project delivery.
Negative Factors
Margin Compression
Material margin deterioration reduces earnings resilience and narrows buffers against cost overruns or contract disputes. Persistently compressed gross and operating margins imply weaker contract economics and higher execution risk across future projects, affecting long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line expansion and a marked acceleration in 2025 indicate strong demand for EPC services and successful contract wins. Durable revenue growth supports scale economics, backlog visibility and the ability to invest in capabilities that underpin multi-quarter project delivery.
Read all positive factors
SINOPEC Engineering (Group) Co., Ltd. Class H (2386) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$26.36B
Dividend Yield5.31%
Average Volume (3M)4.49M
Price to Earnings (P/E)17.3
Beta (1Y)0.26
Revenue Growth11.89%
EPS Growth8.49%
CountryHK
Employees15,935
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.10
Shares Outstanding1,646,804,000
10 Day Avg. Volume4,107,563
30 Day Avg. Volume4,492,642
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)0.95
Price to Sales (P/S)0.44
P/FCF Ratio3.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$7.36Price Target Upside-3.22% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.56
Revenue Forecast (FY)HK$74.84B
SINOPEC Engineering (Group) Co., Ltd. Class H Business Overview & Revenue Model
Company Description
SINOPEC Engineering (Group) Co., Ltd., together with its subsidiaries, provides engineering, procurement, and construction (EPC) contracting services in the People's Republic of China, the Kingdom of Saudi Arabia, Kuwait, Russia, Malaysia, and int...
How the Company Makes Money
The company primarily makes money by delivering project-based engineering and construction services for industrial customers in the oil & gas, refining and petrochemical value chain and broader chemical sectors. Its core revenue model is contracti...
SINOPEC Engineering (Group) Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
80
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 68.26B | 64.20B | 56.22B | 53.03B | 57.76B |
| Gross Profit | 4.79B | 5.34B | 5.61B | 5.61B | 6.47B |
| EBITDA | 2.02B | 3.98B | 3.79B | 2.21B | 2.32B |
| Net Income | 1.75B | 2.47B | 2.34B | 2.29B | 2.13B |
Balance Sheet | |||||
| Total Assets | 91.26B | 81.51B | 80.97B | 78.68B | 72.92B |
| Cash, Cash Equivalents and Short-Term Investments | 29.50B | 21.40B | 24.88B | 24.03B | 18.67B |
| Total Debt | 1.83B | 572.33M | 254.89M | 271.04M | 225.49M |
| Total Liabilities | 59.43B | 49.93B | 50.12B | 48.64B | 43.79B |
| Stockholders Equity | 31.76B | 31.51B | 30.84B | 30.03B | 29.12B |
Cash Flow | |||||
| Free Cash Flow | 8.46B | -2.56B | 2.12B | 6.10B | 2.29B |
| Operating Cash Flow | 8.74B | -2.21B | 2.52B | 6.81B | 2.94B |
| Investing Cash Flow | -3.57B | 2.53B | -2.66B | -905.08M | 503.38M |
| Financing Cash Flow | -974.47M | -1.70B | -1.62B | -1.53B | -1.39B |
SINOPEC Engineering (Group) Co., Ltd. Class H Technical Analysis
Negative
7.60
Price Trends
7.14
Negative
7.32
Negative
6.93
Negative
Market Momentum
-0.42
Positive
31.31
Neutral
16.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2386, the sentiment is Negative. The current price of 7.6 is above the 20-day moving average (MA) of 6.62, above the 50-day MA of 7.14, and above the 200-day MA of 6.93, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 31.31 is Neutral, neither overbought nor oversold. The STOCH value of 16.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2386.
SINOPEC Engineering (Group) Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | HK$44.63B | 4.99 | 11.89% | 6.69% | -5.14% | -4.05% | |
60 Neutral | HK$26.36B | 17.27 | 5.62% | 5.31% | 11.89% | 8.49% | |
52 Neutral | HK$138.24B | 4.06 | 6.46% | 7.43% | -7.46% | -21.80% | |
48 Neutral | HK$80.76B | 6.98 | 7.17% | 3.90% | 11.49% | -7.01% | |
44 Neutral | HK$64.32B | 5.71 | 2.81% | 3.21% | -18.36% | -47.29% | |
44 Neutral | HK$17.44B | 100.11 | 2.33% | ― | -1.75% | ― |
* Industrials Sector Average
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
6.00
1.34
28.78%
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8.45
-1.26
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4.08
1.17
40.11%
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.28
0.39
43.02%
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0.28
20.54%
HK:2068
China Aluminum International Engineering Corporation Limited Class H
2.55
0.95
59.37%
SINOPEC Engineering (Group) Co., Ltd. Class H Corporate Events
SINOPEC Engineering Publishes Audited 2025 Annual Results and Confirms Report Integrity
Mar 15, 2026
SINOPEC Engineering (Group) Co., Ltd., a PRC-incorporated engineering company listed in Hong Kong, specializes in EPC and related technical services for the refining, petrochemical and chemical sectors, supporting major industrial and energy infra...
SINOPEC Engineering Board Clears 2025 Results, 2026 Plans and Dividend Proposals
Mar 15, 2026
SINOPEC Engineering (Group) Co., Ltd. announced that its board of directors held the eleventh meeting of the fifth session on 13 March 2026, approving a comprehensive slate of 2025 performance reviews and 2026 planning documents. These included th...
SINOPEC Engineering Proposes Final Dividend for 2025 with Detailed Tax Treatment for H-Shareholders
Mar 15, 2026
SINOPEC Engineering (Group) Co., Ltd., a major engineering and construction services provider to the energy and petrochemical industries, focuses on delivering large-scale oil refining and petrochemical projects for clients in China and internatio...
Sinopec Engineering Declares Special Dividend for H Shareholders
Mar 15, 2026
SINOPEC Engineering (Group) Co., Ltd. has announced a special dividend of RMB 0.094 per H share, underscoring its robust cash position and willingness to return capital to shareholders. The payment is scheduled for 17 July 2026, with the Hong Kong...
SINOPEC Engineering Schedules Board Meeting to Approve 2025 Results and Dividend Plan
Mar 3, 2026
SINOPEC Engineering (Group) Co., Ltd. has scheduled a board meeting for 13 March 2026 to review and approve the annual results for the year ended 31 December 2025. The board will also consider a proposal for the 2025 dividend distribution plan, wh...
SINOPEC Engineering lifts 2025 backlog on new China and Algeria contracts
Feb 25, 2026
SINOPEC Engineering (Group) Co., Ltd., a leading Chinese engineering contractor in the petrochemical and coal-to-chemicals industries, delivers engineering, procurement, construction, and commissioning services for large refinery and chemical proj...
SINOPEC Engineering Completes Full Circulation of CNPC H Shares
Feb 12, 2026
SINOPEC Engineering (Group) Co., Ltd. has completed the full circulation of certain H shares, converting 219,980,000 domestic shares held by CNPC into H shares. Following regulatory approval from the Hong Kong Stock Exchange, these converted H sha...
Sinopec Engineering Secures CSRC Filing for CNPC Share Conversion to H Shares
Jan 27, 2026
SINOPEC Engineering (Group) Co., Ltd. has received a filing notice from the China Securities Regulatory Commission confirming completion of the regulatory filing for its H share full circulation plan, under which 219,980,000 domestic shares held b...
Sinopec Engineering Formalises Board-Level ESG Committee and Mandate
Dec 24, 2025
Sinopec Engineering (Group) Co., Ltd., a major engineering and construction provider to the energy and petrochemical sectors, focuses on delivering large-scale project design, procurement and implementation services across domestic and internation...
Sinopec Engineering Tightens Audit Committee Rules to Bolster Governance
Dec 24, 2025
SINOPEC Engineering (Group) Co., Ltd. has formalised updated terms of reference for its board audit committee, aligning the committee’s structure and operations with the Company Law of the PRC, Hong Kong Listing Rules and professional guidel...
Sinopec Engineering Tightens Governance with New Nomination Committee Mandate
Dec 24, 2025
SINOPEC Engineering (Group) Co., Ltd. has formalised detailed terms of reference for its board-level Nomination Committee, approved at the tenth meeting of the fifth session of the board of directors in 2025, to strengthen corporate governance and...
SINOPEC Engineering Refines Remuneration Committee Mandate to Strengthen Governance
Dec 24, 2025
SINOPEC Engineering (Group) Co., Ltd. has updated and formally approved new terms of reference for its Board Remuneration Committee, strengthening governance over pay and incentives for directors, senior management and other key executives. The re...
Sinopec Engineering Sets Formal Mandate for Board Strategy and Development Committee
Dec 24, 2025
SINOPEC Engineering (Group) Co., Ltd. has formalised new terms of reference for its Strategy and Development Committee under the board of directors, setting out the committee’s composition, authority and operating procedures. The committee, ...
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.