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China Petroleum & Chemical Corporation Class H (HK:0386)
:0386
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China Petroleum & Chemical (0386) AI Stock Analysis

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HK:0386

China Petroleum & Chemical

(0386)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
HK$4.50
▲(6.64% Upside)
The overall stock score of 67 reflects a stable financial position with a strong balance sheet and attractive dividend yield. However, challenges in revenue and profit margins, along with mixed technical indicators, suggest caution. The lack of earnings call data and corporate events limits further insights.
Positive Factors
Strong Balance Sheet
A low debt-to-equity ratio indicates prudent leverage management, providing financial stability and flexibility for future investments.
Extensive Retail Network
A vast retail network enhances market reach and distribution efficiency, supporting long-term revenue generation and customer access.
Gross Profit Margin
A strong gross profit margin reflects effective cost management, contributing to sustained profitability despite market challenges.
Negative Factors
Declining Revenue
Negative revenue growth suggests potential market or operational challenges, impacting long-term business expansion and profitability.
Negative Cash Flow Growth
Challenges in cash generation can limit the company's ability to invest in growth opportunities and meet financial obligations.
Decreased Profitability
A declining net profit margin indicates difficulties in converting revenue into profit, which could affect shareholder returns and reinvestment capacity.

China Petroleum & Chemical (0386) vs. iShares MSCI Hong Kong ETF (EWH)

China Petroleum & Chemical Business Overview & Revenue Model

Company DescriptionChina Petroleum & Chemical Corporation, an energy and chemical company, engages in the oil and gas and chemical operations in Mainland China, Singapore, and internationally. It operates through five segments: Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others. The company explores and develops oil fields; produces crude oil and natural gas; processes and purifies crude oil; and manufactures and sells petroleum products. It also owns and operates oil depots and service stations; and distributes and sells refined petroleum products, including gasoline and diesel through wholesale and retail sales networks. In addition, the company manufactures and sells petrochemical and derivative petrochemical products; and other chemical products, such as basic organic chemicals, synthetic resins, synthetic fiber monomers and polymers, synthetic fibers, synthetic rubber, and chemical fertilizers. Further, it is involved in the exploration, production, and sale of petroleum and natural gas; production, storage, and sale of petrochemical and coal chemical products; import and export of petroleum products, natural gas, petrochemical, and chemical products; production and sale of catalyst products, lubricant base oil, polyester chips and fibers, plastics, and intermediate petrochemical products; research, development, production, and sale of ethylene and downstream byproducts; provision of geophysical exploration, drilling, survey, logging, downhole operational services, and construction services, as well as crude oil jetty services and natural gas pipeline transmission services; manufacturing production equipment; and coal chemical industry investment management activities. The company was incorporated in 2000 and is headquartered in Beijing, China. China Petroleum & Chemical Corporation is a subsidiary of China Petrochemical Corporation.
How the Company Makes MoneySinopec generates revenue primarily through the sale of refined petroleum products and petrochemicals. Its key revenue streams include the refining of crude oil into various fuels and chemicals, the sale of these products through its extensive distribution network, and the exploration and production of oil and gas. Additionally, Sinopec benefits from its strategic partnerships and joint ventures, particularly in upstream oil and gas exploration, which enhance its resource access and operational efficiency. The company's revenues are also influenced by global oil prices, domestic demand for energy, and government policies regarding energy resources.

China Petroleum & Chemical Financial Statement Overview

Summary
China Petroleum & Chemical shows mixed financial performance. While the balance sheet is stable with a solid equity base, revenue and profit margins have faced challenges. Cash flow generation is inconsistent, indicating potential operational issues.
Income Statement
72
Positive
The company has seen fluctuating revenue with a recent decline in total revenue from 2023 to 2024. Gross profit margin is healthy but has decreased slightly over the period. Net profit margin has shown a slight decline, and there is a clear drop in EBIT and EBITDA margins, indicating potential cost pressures or operational inefficiencies.
Balance Sheet
68
Positive
The balance sheet reflects a relatively stable financial structure with an acceptable debt-to-equity ratio. Stockholders' equity has shown growth, indicating a solid equity base. The equity ratio remains strong, suggesting a stable financial position, but total debt has increased over the years, which could pose future risks.
Cash Flow
65
Positive
The cash flow statement shows fluctuating free cash flow with a recent positive turn in 2024. The operating cash flow to net income ratio has been above 1 in recent years, indicating good cash generation. However, the free cash flow to net income ratio has been inconsistent, suggesting challenges in maintaining free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.91T3.07T3.21T3.32T2.74T2.11T
Gross Profit593.64B502.78B641.45B632.19B662.83B404.89B
EBITDA152.84B207.68B214.65B219.97B238.73B110.42B
Net Income35.61B48.94B58.31B66.93B71.97B33.44B
Balance Sheet
Total Assets2.14T2.08T2.02T1.95T1.89T1.73T
Cash, Cash Equivalents and Short-Term Investments162.33B148.20B165.76B148.56B227.93B196.79B
Total Debt529.87B475.69B440.23B356.70B315.52B300.45B
Total Liabilities1.16T1.11T1.07T1.01T974.18B850.95B
Stockholders Equity824.57B815.82B802.99B784.71B774.18B741.49B
Cash Flow
Free Cash Flow34.43B10.15B-10.02B-37.48B80.25B49.64B
Operating Cash Flow168.11B149.36B161.47B116.27B225.17B167.52B
Investing Cash Flow-142.20B-161.24B-155.87B-95.01B-145.20B-102.20B
Financing Cash Flow-41.00B-19.24B22.73B-39.70B-57.94B-36.95B

China Petroleum & Chemical Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.22
Price Trends
50DMA
4.17
Positive
100DMA
4.19
Positive
200DMA
4.05
Positive
Market Momentum
MACD
0.01
Negative
RSI
61.13
Neutral
STOCH
89.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0386, the sentiment is Positive. The current price of 4.22 is above the 20-day moving average (MA) of 4.11, above the 50-day MA of 4.17, and above the 200-day MA of 4.05, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 89.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0386.

China Petroleum & Chemical Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$898.68B13.115.94%-13.87%-15.41%
€931.75B6.4217.50%6.97%-9.81%-8.84%
$1.64T7.9310.49%6.42%-10.41%-3.12%
$141.99B8.9819.80%7.22%0.80%-35.81%
HK$182.22B9.2210.99%4.23%-3.42%-18.73%
$663.92B12.844.35%5.90%-9.86%-37.24%
$15.17B7.614.09%5.20%3.87%-62.32%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0386
China Petroleum & Chemical
4.22
0.05
1.32%
HK:1898
China Coal Energy Co
10.98
1.74
18.81%
HK:1088
China Shenhua Energy Co
41.88
10.41
33.07%
HK:0857
PetroChina Company
8.00
2.58
47.55%
HK:1171
Yankuang Energy Group Company Limited Class H
10.56
1.21
12.93%
HK:0883
CNOOC Limited
19.95
2.82
16.44%

China Petroleum & Chemical Corporate Events

Sinopec Corp. Schedules Board Meeting to Review Q3 2025 Results
Oct 15, 2025

China Petroleum & Chemical Corporation (Sinopec Corp.) announced that its board of directors will meet on October 29, 2025, to review and potentially approve the company’s third-quarter financial results for 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Corp Reports Decline in Profit Amid Market Challenges
Aug 22, 2025

China Petroleum & Chemical Corporation, also known as Sinopec Corp., is one of China’s largest integrated energy and chemical companies, involved in the exploration, production, and sale of petroleum and natural gas, as well as the production and distribution of petrochemical products and new energy solutions.

Sinopec Corp. Releases 2025 Interim Results
Aug 21, 2025

Sinopec Corp. announced its unaudited interim results for the first half of 2025, showcasing the company’s financial performance and strategic direction. The publication of these results aligns with regulatory requirements, providing stakeholders with insights into the company’s operations and future prospects, although the announcement includes forward-looking statements that caution about potential uncertainties.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Declares Interim Dividend with Tax Details for Non-Residents
Aug 21, 2025

China Petroleum & Chemical Corporation announced an interim cash dividend of RMB 0.088 per share for the period ending June 30, 2025, payable in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.099428. The announcement outlines the withholding tax details for non-resident shareholders, with a standard 10% tax rate applied, impacting stakeholders by providing clarity on dividend distribution and tax obligations.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Corp. Elects New Directors at 2025 Extraordinary General Meeting
Aug 21, 2025

Sinopec Corp. held its first extraordinary general meeting for 2025, where shareholders approved the election of Mr. Hou Qijun and Mr. Cai Yong as non-executive directors. The meeting was conducted in compliance with relevant legal and procedural requirements, reflecting the company’s commitment to governance standards.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Announces New Chairman and Board Committee Adjustments
Aug 21, 2025

China Petroleum & Chemical Corporation has announced the appointment of Mr. Hou Qijun as the new Chairman of the Board, effective from August 21, 2025. This leadership change is accompanied by adjustments in the composition of the Board’s special committees, with Mr. Hou also taking on the role of Chairman of the Strategy Committee and Mr. Zhao Dong appointed as Chairman of the Sustainable Development Committee. These changes are expected to influence the company’s strategic direction and reinforce its commitment to sustainable development.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Announces Board Composition and Committee Roles
Aug 21, 2025

China Petroleum & Chemical Corporation has announced the composition of its board of directors and the roles within its five board committees. This announcement provides clarity on the leadership structure, potentially impacting the company’s strategic direction and governance, which is crucial for stakeholders monitoring Sinopec’s corporate governance and operational strategies.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Corp. Schedules Board Meeting to Review Interim Results
Aug 11, 2025

Sinopec Corp. has announced a board meeting scheduled for August 21, 2025, to review and potentially approve the interim financial results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could influence its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Reports Significant Profit Decline in First Half of 2025
Jul 31, 2025

China Petroleum & Chemical Corporation announced an estimated net profit for the first half of 2025 to be between RMB 20.1 billion and RMB 21.6 billion, marking a significant decrease of 39.5% to 43.7% compared to the same period in 2024. This decline is attributed to lower international crude oil prices, intense market competition, and low chemical margins, despite the company’s efforts to optimize operations and control costs.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 Stock Forecast page.

Sinopec Reports Mixed Operational Results for H1 2025
Jul 24, 2025

Sinopec Corp. reported its operational statistics for the first half of 2025, showing a 2% increase in oil and gas production compared to the previous year. Despite a slight decline in crude oil production, natural gas production rose by 5.1%. The company experienced a decrease in refinery throughput by 5.3%, with notable declines in gasoline and diesel production, although there was an increase in kerosene and light chemical feedstock. The production of ethylene, synthetic resins, and synthetic rubbers saw significant growth, reflecting a shift towards higher value-added products. These changes indicate Sinopec’s strategic adjustments in response to market demands and its efforts to enhance its product portfolio.

The most recent analyst rating on (HK:0386) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Petroleum & Chemical stock, see the HK:0386 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 21, 2025