tiprankstipranks
Trending News
More News >
Sinopec Shanghai Petrochemical Co Class H (HK:0338)
:0338
Advertisement

Sinopec Shanghai Petrochemical Co (0338) AI Stock Analysis

Compare
8 Followers

Top Page

HK:0338

Sinopec Shanghai Petrochemical Co

(OTC:0338)

Select Model
Select Model
Select Model
Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
HK$1.50
▲(10.29% Upside)
Sinopec Shanghai Petrochemical Co's overall stock score reflects a challenging financial environment with modest profitability, negative valuation metrics, and bearish technical indicators. The earnings call revealed significant financial challenges, although there are positive developments in R&D and environmental compliance. The company's focus on operational optimization and innovation is promising, but current financial performance and market conditions remain weak.

Sinopec Shanghai Petrochemical Co (0338) vs. iShares MSCI Hong Kong ETF (EWH)

Sinopec Shanghai Petrochemical Co Business Overview & Revenue Model

Company DescriptionSinopec Shanghai Petrochemical Co. (0338) is a leading integrated petrochemical enterprise in China, operating primarily in the refining and chemical sectors. The company is a subsidiary of Sinopec Limited and is engaged in the production of a wide range of petrochemical products, including synthetic resins, synthetic fibers, plastics, and various chemicals. It also operates a large oil refinery, which processes crude oil into fuels and other petroleum products, positioning it as a key player in the petrochemical industry.
How the Company Makes MoneySinopec Shanghai Petrochemical Co. generates revenue through multiple streams, primarily from the refining of crude oil and the sale of petrochemical products. The company processes significant volumes of crude oil, turning it into gasoline, diesel, and other refined products, which are sold to both domestic and international markets. Additionally, it manufactures a variety of chemical products, including ethylene, propylene, and benzene, which are essential for industrial applications and are sold to various sectors such as construction, automotive, and consumer goods. Strategic partnerships with other entities in the oil and gas sector, along with its affiliation with Sinopec, further enhance its market reach and operational efficiency, contributing to its earnings. The company also benefits from fluctuations in global oil prices and demand for petrochemical products, which directly impact its profitability.

Sinopec Shanghai Petrochemical Co Earnings Call Summary

Earnings Call Date:Oct 22, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 25, 2026
Earnings Call Sentiment Negative
While the company demonstrated advancements in R&D and significant improvements in safety and environmental compliance, the financial performance was marred by a significant decrease in turnover, profits, and production in key areas, alongside inventory impairments and increased liabilities.
Q2-2025 Updates
Positive Updates
Increase in Chemical Product Demand
Chemical products increased by 27.9% Year-over-Year (YoY), with ethylene up 20.29% and butadiene up 28.47%.
Safety and Environmental Compliance
Compliance rate for industrial wastewater discharge, controlled exhaust gas, and hazardous waste disposal was 100%. VOC concentration at the plant boundary decreased by 9.7% YoY.
Innovation and R&D Advancements
Increased R&D for high value-added products, including development of 110KV ultra-high-voltage cable materials, and advancements in carbon fiber technology and applications.
Improved Cash Flow from Operations
Net cash inflow from operating activities was CNY768 million, an increase of CNY517 million compared to the same period last year.
Negative Updates
Decrease in Turnover and Profits
Turnover decreased by 9.17% YoY to CNY39.5 billion. Profit before tax was a loss of CNY583 million compared to a profit of CNY12.43 million in the prior period.
Decline in Oil Refining and Sales
Overall refined products production decreased by 6.81% YoY, with diesel fuel production down 13.56% YoY.
Inventory Impairment
A provision for impairment of CNY407 million was made due to market volatility in crude oil prices.
High Gearing Ratio
Gearing ratio increased to 41.77%, up 2.06 percentage points from the end of the previous year.
Company Guidance
During Sinopec Shanghai Petrochemical Co.'s 2025 Interim Results Conference, the company provided comprehensive guidance on their financial performance and strategic initiatives. Key financial metrics highlighted include a turnover of CNY39.5 billion, a decline of 9.17% year-on-year, and a profit before tax of minus CNY583 million, compared to a profit of CNY12.43 million in the previous year. The net profit attributable to the parent company was minus CNY449 million, translating to earnings per share of minus CNY0.04. The company's assets and liabilities experienced marginal growth, with total assets increasing by 0.5% to CNY41,896 million and total liabilities rising by 5.72% to CNY17,502 million. Capital expenditures for the first half of 2025 stood at CNY408 million, primarily allocated to efficiency improvement projects. Looking forward to the second half of the year, the company plans to continue its focus on safety, operational optimization, innovation, and transformation, with an adjusted capital expenditure target of around CNY2 billion. Despite the challenging external environment, including geopolitical tensions and fluctuating crude oil prices, the company remains committed to enhancing its operational efficiency and pursuing high-quality development projects.

Sinopec Shanghai Petrochemical Co Financial Statement Overview

Summary
Sinopec Shanghai Petrochemical Co shows a mixed financial profile. The income statement indicates modest profitability amidst fluctuating revenue and thin margins. The balance sheet is robust with low leverage, but returns on equity are minimal. Cash flow challenges persist, with negative free cash flow highlighting liquidity management issues. Improving operational efficiency and cash generation will be key to enhancing financial performance and stability.
Income Statement
55
Neutral
The company's income statement shows mixed performance. The TTM data reveals a gross profit margin of 17.40% and a net profit margin of 0.17%, indicating slim profitability despite a positive gross margin. Revenue growth has been volatile, with significant fluctuations over recent years, including a decrease in TTM revenue. The EBIT and EBITDA margins for the TTM period are 0.29% and 0.60%, respectively, highlighting challenges in generating operating profits. The company's revenue growth and profitability show potential but are impacted by operational inefficiencies.
Balance Sheet
65
Positive
The balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.01 in the TTM period, suggesting low financial leverage. The return on equity is low at 0.57%, indicating limited profitability from shareholders' equity. The equity ratio of 60.42% demonstrates a strong equity base relative to total assets, highlighting stability. The company's conservative leverage profile is a positive, although the low ROE suggests room for improving returns on equity investments.
Cash Flow
50
Neutral
Cash flow analysis shows a challenging environment. The TTM free cash flow is negative, indicating cash outflows exceeding inflows from operations. The operating cash flow to net income ratio is 7.44, showing strong cash generation relative to reported net income. However, the free cash flow to net income ratio is negative, reflecting capital expenditure pressures. The company needs to improve free cash flow generation to support long-term financial stability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue83.12B87.13B93.01B72.65B75.89B61.56B
Gross Profit14.62B15.09B13.86B-3.61B1.59B-340.25M
EBITDA-170.76M2.37B-52.09M-1.99B4.31B568.82M
Net Income-173.54M316.50M-1.41B-2.84B2.00B628.11M
Balance Sheet
Total Assets41.97B41.77B39.66B41.14B46.92B44.62B
Cash, Cash Equivalents and Short-Term Investments8.43B12.10B5.61B4.58B13.55B12.17B
Total Debt386.82M1.57B3.71B2.27B2.26B4.58B
Total Liabilities17.57B16.62B14.72B14.78B16.54B15.28B
Stockholders Equity24.31B25.04B24.82B26.23B30.24B29.20B
Cash Flow
Free Cash Flow-3.84B5.83B-808.37M-10.30B725.96M-161.14M
Operating Cash Flow778.94M7.74B807.00M-7.46B3.95B1.68B
Investing Cash Flow-727.89M-2.05B1.98B4.39B-2.36B-3.89B
Financing Cash Flow-5.03B-2.39B1.22B-1.17B-3.39B1.68B

Sinopec Shanghai Petrochemical Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.36
Price Trends
50DMA
1.36
Negative
100DMA
1.34
Negative
200DMA
1.26
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
43.09
Neutral
STOCH
8.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0338, the sentiment is Neutral. The current price of 1.36 is below the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.36, and above the 200-day MA of 1.26, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0338.

Sinopec Shanghai Petrochemical Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HK$822.10M5.924.05%-12.48%
HK$62.43B10.028.88%4.76%4.37%0.58%
$15.17B7.614.09%5.20%3.87%-62.32%
HK$674.10M18.487.01%2.15%-13.08%-43.83%
HK$26.22B-0.59%1.61%-11.11%62.07%
HK$5.35B-45.00-80.73%57.62%32.20%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0338
Sinopec Shanghai Petrochemical Co
1.33
0.13
11.02%
HK:0135
KUNLUN ENERGY
7.14
-0.09
-1.26%
HK:0931
China LNG Group
0.51
0.11
27.50%
HK:0603
China Oil & Gas Group
0.17
-0.02
-11.22%
HK:0852
Strong Petrochemical Holdings Limited
0.17
-0.07
-29.96%
HK:2337
United Strength Power Holdings Ltd.
1.80
-0.09
-4.76%

Sinopec Shanghai Petrochemical Co Corporate Events

Sinopec Shanghai Petrochemical Reports Mixed Q3 2025 Results
Oct 23, 2025

Sinopec Shanghai Petrochemical Co. Ltd., a joint-stock company based in China, operates in the petrochemical industry, engaging in the production and sale of petroleum products, petrochemicals, and synthetic fibers. The company is a significant player in the sector, with a diverse product portfolio and a strong presence in both domestic and international markets.

Sinopec Shanghai Petrochemical Reports Decline in Product Prices for 2025
Oct 22, 2025

Sinopec Shanghai Petrochemical Company Limited reported its major operating data for the first three quarters of 2025, showing a decline in the average prices of its major products compared to the same period in 2024. The company experienced a decrease in sales revenue for several products, including diesel and gasoline, due to lower average prices, which may impact its financial performance and market positioning.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.13 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Co Approves New Framework Agreements for Continued Operations
Oct 22, 2025

Sinopec Shanghai Petrochemical Co has announced the approval of New Framework Agreements with Sinopec Group and Sinopec Corp., set to replace the Existing Framework Agreements expiring at the end of 2025. These agreements, effective until 2028, involve continuing connected transactions that require compliance with Hong Kong and Shanghai listing rules, including independent shareholder approval. The company plans to hold an Extraordinary General Meeting (EGM) to approve these transactions and has established an Independent Board Committee to advise shareholders on the terms.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.13 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Announces Strategic Corporate Amendments
Oct 22, 2025

Sinopec Shanghai Petrochemical Company Limited has announced a series of strategic amendments to its corporate structure and governance in response to recent regulatory changes in China. These amendments include the reduction of registered capital, the abolishment of the supervisory committee, and adjustments to the company’s business scope. The changes aim to align with the revised Company Law and enhance corporate governance, potentially impacting the company’s operational efficiency and market positioning. The proposed amendments will be considered at the company’s 2025 second extraordinary general meeting, with final adjustments subject to regulatory approval.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.13 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Enhances Audit and Compliance Committee Procedures
Oct 22, 2025

Sinopec Shanghai Petrochemical Company Limited has announced amendments to the rules of procedure for its Audit and Compliance Committee. These changes are aimed at enhancing the decision-making function of the board, improving corporate governance, and ensuring effective supervision over management. The committee, composed primarily of independent non-executive directors, is responsible for overseeing compliance and exercising supervisory duties as per regulatory requirements. This move is expected to strengthen the company’s governance structure and uphold shareholder interests.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.13 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Updates Remuneration Committee Procedures
Oct 22, 2025

Sinopec Shanghai Petrochemical Company Limited has revised the rules of procedure for its Remuneration and Appraisal Committee, highlighting a commitment to enhancing corporate governance. The committee is responsible for establishing remuneration policies, appraising directors and officers, and overseeing compensation arrangements, which are crucial for aligning management performance with company goals and ensuring fair practices.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.13 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Enhances Governance with Nomination Committee Amendments
Oct 22, 2025

Sinopec Shanghai Petrochemical Company Limited has amended the rules of procedure for its Nomination Committee to enhance corporate governance. This move aims to optimize the board’s composition and improve governance by establishing clear guidelines for the selection and evaluation of directors and officers. The Nomination Committee, primarily composed of independent non-executive directors, is responsible for making recommendations on board appointments and assessing the qualifications of candidates. This amendment is expected to strengthen the company’s governance structure and ensure a robust succession planning process.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.13 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Implements Board Diversity Policy
Oct 22, 2025

Sinopec Shanghai Petrochemical Company Limited has implemented a Board Diversity Policy to enhance sustainable and balanced development by increasing diversity among its Board of Directors. The policy emphasizes diversity in gender, age, cultural and educational background, and professional experience, aiming to support the company’s strategic objectives and maintain sustainable growth. The Nomination Committee will monitor and report on the Board’s composition annually, ensuring the policy’s effectiveness and considering necessary revisions.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.13 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Reports Mixed Q3 2025 Results
Oct 22, 2025

Sinopec Shanghai Petrochemical Company Limited reported its third-quarter results for 2025, highlighting a significant increase in net profit attributable to equity shareholders by 361.67% compared to the same period last year, despite a 13.8% decrease in revenue. The company also noted a substantial decline in net cash flows from operating activities by 81.28%, indicating potential challenges in operational liquidity. These results reflect a mixed financial performance, with improved profitability but ongoing pressures on revenue and cash flow, which may impact the company’s strategic positioning and stakeholder interests.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.13 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Schedules Board Meeting for Q3 Results
Oct 10, 2025

Sinopec Shanghai Petrochemical Company Limited has announced a board meeting scheduled for October 22, 2025, to review and approve the company’s third-quarter results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Co. Earnings Call Reveals Mixed Sentiment
Sep 1, 2025

Sinopec Shanghai Petrochemical Co. recently held its earnings call, revealing a mixed sentiment among stakeholders. While the company celebrated advancements in research and development, as well as improvements in safety and environmental compliance, these positive strides were overshadowed by a significant decline in financial performance. The company reported a notable decrease in turnover, profits, and production in key areas, coupled with inventory impairments and increased liabilities, painting a challenging picture for the period under review.

Sinopec Shanghai Petrochemical Faces Challenges in 2025 Interim Results
Aug 21, 2025

Sinopec Shanghai Petrochemical Co., a leading player in China’s petrochemical industry, specializes in refining and chemical production with a focus on high-quality development projects. In its 2025 interim report, the company revealed a challenging first half of the year, marked by a significant decline in revenue and profitability. Operating income fell by 9.21% to RMB 39.5 billion, while the company recorded a net loss of RMB 462 million, a stark contrast to the previous year’s profit. Despite the downturn, the company managed to increase its net cash flows from operating activities by 127.78%. The company faced a decrease in production volumes across several key products, although ethylene and p-xylene production saw notable increases. The company also reported a decrease in the cost of crude oil processing, contributing to a reduction in overall costs. Looking ahead, Sinopec Shanghai plans to focus on safety, operational optimization, and innovation-driven development to navigate the complex market environment and achieve its annual objectives.

Sinopec Shanghai Reports Significant Losses in 2025 Interim Results
Aug 20, 2025

Sinopec Shanghai Petrochemical Company Limited reported its interim results for the first half of 2025, showing a significant decline in financial performance. The company experienced a 9.21% decrease in operating income compared to the previous year, and a substantial net loss attributable to equity shareholders, marking a challenging period for the company. Despite the losses, the company saw a notable increase in net cash flows generated from operating activities, indicating some operational resilience. This financial downturn may impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical Announces RMB417 Million Asset Impairment Provision
Aug 20, 2025

Sinopec Shanghai Petrochemical Company Limited announced a provision for asset impairment amounting to RMB417 million for the first half of 2025. This decision, driven by fluctuating market prices and in accordance with accounting standards, reflects the company’s effort to accurately represent its financial position. The impairment provision primarily stems from inventory write-offs and has impacted the company’s net profit, reducing it by RMB19 million for the period.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

Sinopec Shanghai Petrochemical to Review 2025 Interim Results
Aug 8, 2025

Sinopec Shanghai Petrochemical Company Limited has announced that its Board of Directors will meet on August 20, 2025, to consider and approve the interim results for the first half of 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the year.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.20 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

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.Date of analysis: Oct 29, 2025