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China Petroleum & Chemical
(0386)
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Rating:57Neutral
Price Target:
HK$5.00
â–²(6.16% Upside)
Action:Reiterated
Date:08/30/26
The score is primarily held back by mixed financial performance—thin margins, volatile earnings (including negative EBIT in 2025), and inconsistent free cash flow generation. Technicals are supportive due to an established uptrend, but overbought readings add near-term risk. Valuation is neutral-to-supportive, helped by a solid dividend yield, but not strong enough to offset operational and cash-flow volatility.
Positive Factors
Revenue growth
Strong TTM revenue growth signals continued demand across Sinopec’s energy and chemical businesses. Sustained top-line expansion can improve scale, support network utilization and provide a foundation for earnings recovery.
Negative Factors
Thin, volatile profitability
Low margins leave earnings highly sensitive to crude costs, product spreads, demand and operating expenses. The recent EBIT decline shows that large revenue scale does not ensure stable profits when commodity and refining conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth
Strong TTM revenue growth signals continued demand across Sinopec’s energy and chemical businesses. Sustained top-line expansion can improve scale, support network utilization and provide a foundation for earnings recovery.
Read all positive factors
China Petroleum & Chemical (0386) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$702.68B
Dividend Yield5.76%
Average Volume (3M)128.51M
Price to Earnings (P/E)17.9
Beta (1Y)0.63
Revenue Growth0.12%
EPS Growth3.83%
CountryHK
Employees351,104
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.29
Shares Outstanding23,675,822,000
10 Day Avg. Volume112,959,156
30 Day Avg. Volume128,506,277
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)0.61
Price to Sales (P/S)0.21
P/FCF Ratio15.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.76Price Target Upside1.06% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.34
Revenue Forecast (FY)HK$2.95T
China Petroleum & Chemical Business Overview & Revenue Model
Company Description
China Petroleum & Chemical Corporation, commonly referred to as Sinopec, is a prominent energy and chemical enterprise conducting operations across Mainland China, Singapore, and various international locations. Established in 2000, this Beijing-h...
How the Company Makes Money
Sinopec makes money primarily by selling energy and chemical products and providing related services across its integrated value chain.
1) Refining and sales of petroleum products (downstream): A major revenue driver is purchasing/producing crude...
China Petroleum & Chemical Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
64
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.74T | 2.44T | 3.07T | 3.21T | 3.32T | 2.74T |
| Gross Profit | 338.66B | 74.08B | 502.78B | 641.45B | 632.19B | 662.83B |
| EBITDA | 139.35B | 110.18B | 207.68B | 214.65B | 219.97B | 238.73B |
| Net Income | 35.08B | 31.64B | 48.94B | 58.31B | 66.93B | 71.97B |
Balance Sheet | ||||||
| Total Assets | 2.20T | 2.15T | 2.08T | 2.02T | 1.95T | 1.89T |
| Cash, Cash Equivalents and Short-Term Investments | 185.77B | 150.94B | 148.20B | 165.76B | 148.56B | 227.93B |
| Total Debt | 566.95B | 597.72B | 475.69B | 440.23B | 356.70B | 315.52B |
| Total Liabilities | 1.19T | 1.17T | 1.11T | 1.07T | 1.01T | 974.18B |
| Stockholders Equity | 840.90B | 827.82B | 815.82B | 802.99B | 784.71B | 774.18B |
Cash Flow | ||||||
| Free Cash Flow | 19.97B | 33.78B | 10.15B | -10.02B | -37.48B | 80.25B |
| Operating Cash Flow | 167.14B | 163.95B | 149.36B | 161.47B | 116.27B | 225.17B |
| Investing Cash Flow | -136.80B | -148.17B | -161.24B | -155.87B | -95.01B | -145.20B |
| Financing Cash Flow | -33.30B | -25.57B | -19.24B | 22.73B | -39.70B | -57.94B |
China Petroleum & Chemical Technical Analysis
Negative
4.71
Price Trends
4.41
Negative
4.25
Positive
4.42
Negative
Market Momentum
-0.01
Positive
42.32
Neutral
24.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0386, the sentiment is Negative. The current price of 4.71 is above the 20-day moving average (MA) of 4.53, above the 50-day MA of 4.41, and above the 200-day MA of 4.42, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 24.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0386.
China Petroleum & Chemical Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$1.16T | 7.01 | 16.54% | 6.34% | 10.53% | 12.73% | |
74 Outperform | HK$2.32T | 11.68 | 11.07% | 6.18% | 10.00% | 15.07% | |
71 Outperform | HK$1.15T | 17.13 | 12.99% | 5.21% | 16.50% | 4.45% | |
66 Neutral | HK$55.61B | 15.09 | 8.30% | 4.41% | 6.80% | 14.80% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
57 Neutral | HK$702.68B | 17.87 | 4.29% | 5.76% | 0.12% | 3.83% | |
47 Neutral | HK$27.07B | -42.97 | -2.85% | 2.01% | -5.52% | -518.88% |
* Energy Sector Average
HK:0386
China Petroleum & Chemical
4.36
0.51
13.12%
HK:2883
China Oilfield Services
7.33
0.91
14.21%
HK:1088
China Shenhua Energy Co
43.40
7.58
21.17%
HK:0857
PetroChina Company
9.52
2.81
41.80%
HK:0338
Sinopec Shanghai Petrochemical Co
1.09
-0.29
-20.80%
HK:0883
CNOOC Limited
23.52
5.83
32.97%
China Petroleum & Chemical Corporate Events
Sinopec Announces Interim Dividend and Sets Withholding Tax Terms for H-Shareholders
Aug 23, 2026
China Petroleum Chemical Corporation has declared an interim ordinary cash dividend of RMB 0.105 per share for the six months ended 30 June 2026, payable to H-shareholders in Hong Kong dollars at HKD 0.1223 per share. The ex-dividend date is set ...
Sinopec Publishes Unaudited Interim Results for First Half of 2026
Aug 23, 2026
China Petroleum Chemical Corporation has released its unaudited interim results for the six months ended 30 June 2026, publishing the full interim report on both the Hong Kong exchange disclosure platform and the company’s website. The anno...
Sinopec Schedules Board Meeting to Approve 2026 Interim Results
Aug 10, 2026
China Petroleum Chemical Corporation has announced that its board of directors will convene on 21 August 2026 to review and consider approval of the company’s interim results for the six months ended 30 June 2026. The scheduled meeting sign...
Sinopec Posts Stable Upstream Output but Weaker Refining and Petrochemical Volumes in H1 2026
Jul 23, 2026
China Petroleum Chemical Corporation reported largely stable upstream performance in the first half of 2026, with overall oil and gas output edging up 0.3% to 263.48 million barrels of oil equivalent and natural gas production rising 0.7%, while ...
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.