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Sinopec Shanghai Petrochemical Co (0338) AI Stock Analysis
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Sinopec Shanghai Petrochemical Co
(HKEX:0338)
The score is primarily constrained by weak financial performance—especially materially negative TTM free cash flow and negative EBIT—despite a supportive balance sheet. Technicals provide a modest offset as the stock is above key short- and mid-term moving averages with slightly positive MACD, but longer-term trend remains weaker and RSI is elevated. Valuation is also a headwind due to a negative P/E and only a modest dividend yield.
Sinopec Shanghai Petrochemical Co (0338) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 3.45B
- Dividend Yield
- 1.77%
- Average Volume (3M)
- 10.31M
- Price to Earnings (P/E)
- -47.7
- Beta (1Y)
- 0.70
- Revenue Growth
- -5.52%
- EPS Growth
- -518.88%
- Country
- Hong Kong
- Employees
- 6,940
- Sector
- Energy
- Sector Strength
- 65
- Industry
- Oil & Gas Refining & Marketing
Sinopec Shanghai Petrochemical Co Business Overview & Revenue Model
Company Description
Sinopec Shanghai Petrochemical Company Limited, along with its affiliated entities, is primarily engaged in the production and distribution of petroleum-derived goods throughout the People's Republic of China. Its operations are organized into five d...
How the Company Makes Money
The company makes money primarily by converting crude oil and hydrocarbon feedstocks into higher-value refined products and petrochemical materials and selling them to customers through wholesale/industrial channels and, where applicable, Sinopec’s b...
Sinopec Shanghai Petrochemical Co Earnings Call Summary
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
Negative Updates
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
Financials are mixed but skew weak: income statement performance is volatile with negative EBIT and thin/unstable margins despite TTM revenue rebound and a small return to profit. The balance sheet is comparatively supportive, though leverage has stepped up in TTM. Cash flow is the main risk, with slightly negative operating cash flow and deeply negative free cash flow in TTM, indicating weak cash conversion and higher liquidity/funding risk.
Income Statement
38NegativeBalance Sheet
63PositiveCash Flow
27Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 95.75B | 62.35B | 87.13B | 93.01B | 72.65B | 75.89B |
| Gross Profit | 1.11B | -1.78B | 15.09B | 13.86B | -3.61B | 1.59B |
| EBITDA | -2.83B | -176.20M | 2.37B | 167.00M | -1.72B | 4.26B |
| Net Income | 350.22M | -1.57B | 316.50M | -1.41B | -2.84B | 2.00B |
Balance Sheet | ||||||
| Total Assets | 48.94B | 39.83B | 41.77B | 39.66B | 41.14B | 46.92B |
| Cash, Cash Equivalents and Short-Term Investments | 9.78B | 7.85B | 12.10B | 5.61B | 4.58B | 13.55B |
| Total Debt | 4.23B | 819.93M | 1.57B | 3.71B | 2.27B | 2.26B |
| Total Liabilities | 23.78B | 16.59B | 16.62B | 14.72B | 14.78B | 16.54B |
| Stockholders Equity | 24.11B | 23.13B | 25.04B | 24.82B | 26.23B | 30.24B |
Cash Flow | ||||||
| Free Cash Flow | -5.17B | -1.18B | 5.83B | -808.37M | -10.30B | 725.96M |
| Operating Cash Flow | -2.43M | 1.99B | 7.74B | 807.00M | -7.46B | 3.95B |
| Investing Cash Flow | -4.51B | -1.58B | -2.05B | 1.98B | 4.39B | -2.36B |
| Financing Cash Flow | 3.82B | -1.10B | -2.39B | 1.22B | -1.17B | -3.39B |
Sinopec Shanghai Petrochemical Co Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0338, the sentiment is Positive. The current price of 1.23 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.14, and below the 200-day MA of 1.26, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0338.
Sinopec Shanghai Petrochemical Co Risk Analysis
Sinopec Shanghai Petrochemical Co disclosed 24 risk factors in its most recent earnings report. Sinopec Shanghai Petrochemical Co reported the most risks in the "Finance & Corporate" category.
- Finance & Corporate7
- Tech & Innovation1
- Legal & Regulatory7
- Production2
- Ability to Sell3
- Macro & Political4
Latest Risks Added
2 New RisksSinopec Shanghai Petrochemical Co Peers Comparison
Overall Rating
HK:013570Outperform
HK:060350Neutral- HK:033847Neutral
HK:827044Neutral
HK:272843Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:0135 | 70Outperform | HKD 65.30B | 10.20 | 7.89% | 5.14% | 6.16% | -1.61% |
| Sector * | 65Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
| HK:0603 | 50Neutral | HKD 533.89M | 22.60 | 0.62% | ― | -6.95% | -85.71% |
| HK:0338 | 47Neutral | HKD 30.30B | -47.66 | 0.36% | 1.77% | -5.52% | -518.88% |
| HK:8270 | 44Neutral | HKD 162.04M | 1.23 | 105.99% | ― | ― | ― |
| HK:2728 | 43Neutral | HKD 102.47M | -3.83 | -69.23% | ― | -5.50% | -67.32% |
* Energy Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0338 | Sinopec Shanghai Petrochemical Co Class H | 1.23 | -0.12 | -8.89% | |
| HK:0135 | KUNLUN ENERGY | 7.58 | 0.74 | 10.83% | |
| HK:0603 | China Oil & Gas Group | 0.11 | -0.07 | -36.87% | |
| HK:0852 | Strong Petrochemical Holdings Limited | 0.19 | 0.02 | 15.06% | |
| HK:2728 | Jintai Energy Holdings Limited | 0.46 | -0.12 | -20.69% | |
| HK:8270 | China CBM Group Co. Ltd. | 0.41 | 0.15 | 59.62% |
Sinopec Shanghai Petrochemical Co Corporate Events
Sinopec Shanghai Petrochemical Swings to Strong Profit in Q3 2026
Sinopec Shanghai Petrochemical reported a sharp rebound in profitability in its unaudited third-quarter 2026 results, with operating income rising 7.93% year-on-year to RMB 20.86 billion and quarterly net profit attributable to equity shareholders su...
Sinopec Shanghai Petrochemical Posts Higher Petrochemical Prices Amid Rising Crude Costs
Sinopec Shanghai Petrochemical reported production and sales volumes for the first three quarters of 2026 across its core refined oil and chemical product lines, highlighting strong output in gasoline, diesel, jet fuel and key petrochemicals such as...
Sinopec Shanghai Petrochemical Sets October Board Meeting to Approve Q3 Results
Sinopec Shanghai Petrochemical Company Limited has scheduled a board meeting for 29 October 2026 to review and approve the Group’s third-quarter results for the nine months ended 30 September 2026, ahead of their planned publication. The meetin...
Sinopec Shanghai Petrochemical Turns to Profit Despite Slight Revenue Decline
Sinopec Shanghai Petrochemical reported interim results for the six months ended 30 June 2026, showing a slight year-on-year decline in operating income under PRC accounting standards. Revenue fell 1.34% from RMB 39.52 billion to RMB 38.99 billion, i...
Sinopec Shanghai Petrochemical Books RMB545 Million Asset Impairment for H1 2026
Sinopec Shanghai Petrochemical Company Limited, a Hong Kong-listed Chinese petrochemical producer, manufactures refined oil and chemical products for both domestic and overseas markets under PRC accounting standards. Its financial results are influen...
Sinopec Shanghai Petrochemical Sets Board Meeting to Approve 2026 Interim Results
Sinopec Shanghai Petrochemical Company Limited has scheduled a board meeting for 19 August 2026 to review and approve the Group’s interim results for the six months ended 30 June 2026 and to handle other board matters. The announcement signals...
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 31, 2026