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:63Neutral
Price Target:
HK$6.00
â–Ľ(-21.05% Downside)
Action:Reiterated
Date:04/09/26
The score is supported by financial resilience from a low-leverage balance sheet and improving 2025 cash flow, plus a high dividend yield. It is held back by sharply weaker 2025 margins and clearly bearish technical momentum (below key moving averages with negative MACD and weak RSI/stochastic).
Positive Factors
Conservative balance sheet
The company’s very low leverage and stable-to-growing equity provide durable financial flexibility for EPC contracting. Low debt supports bidding on large projects, cushions cyclical downturns, and reduces refinancing risk, enabling sustained capital allocation to operations and dividends.
Negative Factors
Material margin compression
Sharp margin deterioration erodes earnings resilience in an industry where project overruns and pricing power matter. Lower gross and operating margins reduce reinvestment capacity, leave less buffer for cost shocks, and signal possible contract pricing pressure or adverse mix shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
The company’s very low leverage and stable-to-growing equity provide durable financial flexibility for EPC contracting. Low debt supports bidding on large projects, cushions cyclical downturns, and reduces refinancing risk, enabling sustained capital allocation to operations and dividends.
Read all positive factors
SINOPEC Engineering (Group) Co., Ltd. Class H (2386) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$24.87B
Dividend Yield5.31%
Average Volume (3M)4.49M
Price to Earnings (P/E)16.8
Beta (1Y)0.35
Revenue Growth9.27%
EPS Growth-27.28%
CountryHK
Employees15,935
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.41
Shares Outstanding1,646,804,000
10 Day Avg. Volume4,107,563
30 Day Avg. Volume4,492,642
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)0.95
Price to Sales (P/S)0.43
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)0.54
Revenue Forecast (FY)HK$74.60B
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 | 70.07B | 64.20B | 56.22B | 53.03B | 57.76B |
| Gross Profit | 5.18B | 5.34B | 5.61B | 5.61B | 6.47B |
| EBITDA | 1.92B | 3.98B | 3.79B | 2.21B | 2.32B |
| Net Income | 1.80B | 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
6.36
Negative
6.91
Negative
6.98
Negative
Market Momentum
-0.19
Positive
29.55
Positive
7.33
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 6.15, above the 50-day MA of 6.36, and above the 200-day MA of 6.98, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 29.55 is Positive, neither overbought nor oversold. The STOCH value of 7.33 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$47.49B | 3.19 | 11.89% | 6.69% | -5.48% | -4.24% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$24.87B | 16.82 | 5.64% | 5.31% | 9.27% | -27.28% | |
57 Neutral | HK$83.47B | 8.64 | 4.96% | 3.90% | 5.40% | -33.06% | |
57 Neutral | HK$62.16B | 4.48 | 0.95% | 3.21% | -17.50% | -75.50% | |
53 Neutral | HK$127.10B | 5.02 | 6.18% | 7.43% | -5.68% | -21.80% | |
52 Neutral | HK$17.52B | 22.20 | 6.83% | ― | -3.56% | 49.92% |
* Industrials Sector Average
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
5.72
0.29
5.38%
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8.90
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0.23
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SINOPEC Engineering (Group) Co., Ltd. Class H Corporate Events
SINOPEC Engineering updates timetable and tax details for 2025 final dividend
May 20, 2026
SINOPEC Engineering (Group) Co., Ltd. announced an updated timetable for its final cash dividend for the year ended 31 December 2025, confirming a payout of RMB 0.104 per share subject to shareholder approval on 5 June 2026. The ex-dividend date i...
Sinopec Engineering Updates Timetable and Tax Details for 2025 Special Dividend
May 20, 2026
SINOPEC Engineering (Group) Co., Ltd. has updated details of a special cash dividend for the financial year ended 31 December 2025, declaring a payout of RMB 0.094 per share subject to shareholder approval on 5 June 2026. The ex-dividend date has ...
SINOPEC Engineering Updates Final 2025 Dividend Details and Tax Arrangements
May 15, 2026
SINOPEC Engineering (Group) Co., Ltd. has updated details of its proposed final dividend for the financial year ended 31 December 2025, declaring a payout of RMB 0.104 per share, subject to shareholder approval on 5 June 2026. The company has also...
SINOPEC Engineering Announces Special Dividend and Sets Withholding Tax Framework
May 15, 2026
SINOPEC Engineering (Group) Co., Ltd. has declared a special dividend of RMB 0.094 per share for the financial year ended 31 December 2025, with payment scheduled for 17 July 2026 following shareholder approval on 5 June 2026. The timetable includ...
SINOPEC Engineering Sets 2025 AGM to Approve Dividends, Auditors and Share Buyback Mandate
May 15, 2026
SINOPEC Engineering (Group) Co., Ltd. has called its 2025 annual general meeting for 5 June 2026 in Beijing, where shareholders will review the board’s work report and the audited financial statements for 2025. Investors will also vote on a ...
SINOPEC Engineering Seeks Shareholder Mandate for Share Repurchase
May 15, 2026
SINOPEC Engineering (Group) Co., Ltd. has called its first Domestic Shareholders’ Meeting for 2026, to be held in Beijing on 5 June 2026 immediately after the 2025 annual general meeting. The meeting will ask domestic shareholders to conside...
SINOPEC Engineering Calls 2026 H Shareholders’ Meeting to Seek Share Buyback Mandate
May 15, 2026
SINOPEC Engineering (Group) Co., Ltd. has called its first H Shareholders’ Meeting for 2026 in Beijing on 5 June 2026, to be held immediately after the 2025 annual general meeting and the first Domestic Shareholders’ Meeting. H shareho...
SINOPEC Engineering Clarifies Board and Committee Roles in Governance Update
May 11, 2026
SINOPEC Engineering (Group) Co., Ltd. has disclosed the current composition of its board of directors, detailing the mix of executive, non-executive and independent non-executive directors and highlighting the inclusion of an employee representati...
SINOPEC Engineering Chairman Jiang Dejun Resigns, Board Emphasizes Stable Transition
May 11, 2026
SINOPEC Engineering (Group) Co., Ltd. announced that Chairman and executive director Mr. Jiang Dejun has resigned from the board and from his roles as head of the nomination, strategy and development, and ESG committees, citing age as the reason. ...
SINOPEC Engineering Secures RMB27.6 Billion in New Q1 Contracts, Backlog Reaches RMB213.5 Billion
Apr 24, 2026
SINOPEC Engineering (Group) Co., Ltd. reported that it signed new contracts worth RMB27.553 billion in the first quarter of 2026, underlining continued demand for its engineering and construction services in petrochemicals, coal-to-chemicals, carb...
Sinopec Engineering Wins US$1.1 Billion EPC Deal for Kazakhstan Rubber Plant
Apr 7, 2026
SINOPEC Engineering (Group) Co., Ltd. has secured a major EPC contract worth about US$1.093 billion from Kazakhstan Butadiene LLP, a subsidiary of state-owned Samruk-Kazyna JSC, to build a butadiene and rubber complex in Kazakhstan’s Atyrau ...
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...
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.