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SINOPEC Engineering (Group) Co., Ltd. Class H
(2386)
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Rating:68Neutral
Price Target:
HK$6.00
▼(-21.05% Downside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by solid financial resilience (low leverage) and improving cash generation in 2025, plus an attractive valuation with a high dividend yield. Offsetting these positives are the sharp 2025 margin compression and only neutral technical signals, with the stock still below longer-term moving averages.
Positive Factors
Strong Revenue Growth
Strong revenue expansion indicates continued demand for the company’s engineering, procurement, construction, and project-management services. The acceleration in 2025 provides a durable scale opportunity, although sustained benefits will depend on converting growth into healthier project margins.
Negative Factors
Material Margin Compression
The pronounced decline in gross, operating, and net margins means recent revenue growth is producing less profit per project. Persistently lower margins would weaken earnings quality, reduce returns on the expanded asset base, and leave less buffer against execution costs or contract pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Strong revenue expansion indicates continued demand for the company’s engineering, procurement, construction, and project-management services. The acceleration in 2025 provides a durable scale opportunity, although sustained benefits will depend on converting growth into healthier project margins.
Read all positive factors
SINOPEC Engineering (Group) Co., Ltd. Class H (2386) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$23.66B
Dividend Yield7%
Average Volume (3M)6.30M
Price to Earnings (P/E)12.9
Beta (1Y)0.56
Revenue Growth14.07%
EPS Growth-35.89%
CountryHK
Employees16,092
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.35
Shares Outstanding1,646,804,000
10 Day Avg. Volume7,350,765
30 Day Avg. Volume6,304,422
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$7.09Price Target Upside-6.68% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.51
Revenue Forecast (FY)HK$75.34B
SINOPEC Engineering (Group) Co., Ltd. Class H Business Overview & Revenue Model
Company Description
SINOPEC Engineering (Group) Co., Ltd., along with its affiliated entities, specializes in delivering comprehensive engineering, procurement, and construction (EPC) services across the globe, with operations spanning China, Saudi Arabia, Kuwait, Ru...
How the Company Makes Money
The company primarily makes money by contracting for industrial engineering and construction projects and recognizing revenue as it performs work under customer contracts. Key revenue streams typically include: (1) Engineering and consulting servi...
SINOPEC Engineering (Group) Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
80
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.14B | 70.07B | 64.20B | 56.22B | 53.03B | 57.76B |
| Gross Profit | 5.32B | 5.18B | 5.34B | 5.61B | 5.61B | 6.47B |
| EBITDA | 2.26B | 2.23B | 3.98B | 3.79B | 2.42B | 2.53B |
| Net Income | 1.55B | 1.80B | 2.47B | 2.34B | 2.29B | 2.13B |
Balance Sheet | ||||||
| Total Assets | 91.00B | 91.26B | 81.51B | 80.97B | 78.68B | 72.92B |
| Cash, Cash Equivalents and Short-Term Investments | 27.99B | 29.50B | 21.40B | 24.88B | 24.03B | 18.67B |
| Total Debt | 1.83B | 1.83B | 572.33M | 254.89M | 271.04M | 225.49M |
| Total Liabilities | 59.00B | 59.43B | 49.93B | 50.12B | 48.64B | 43.79B |
| Stockholders Equity | 31.93B | 31.76B | 31.51B | 30.84B | 30.03B | 29.12B |
Cash Flow | ||||||
| Free Cash Flow | 4.17B | 8.46B | -2.56B | 2.12B | 6.10B | 2.29B |
| Operating Cash Flow | 4.47B | 8.74B | -2.21B | 2.52B | 6.81B | 2.94B |
| Investing Cash Flow | -3.48B | -3.57B | 2.53B | -2.66B | -905.08M | 503.38M |
| Financing Cash Flow | -823.00M | -974.47M | -1.70B | -1.62B | -1.53B | -1.39B |
SINOPEC Engineering (Group) Co., Ltd. Class H Technical Analysis
Positive
7.60
Price Trends
5.31
Positive
5.22
Positive
5.75
Negative
Market Momentum
<0.01
Positive
51.54
Neutral
68.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2386, the sentiment is Positive. The current price of 7.6 is above the 20-day moving average (MA) of 5.37, above the 50-day MA of 5.31, and above the 200-day MA of 5.75, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$23.66B | 12.89 | 4.87% | 7.00% | 14.07% | -35.89% | |
67 Neutral | HK$45.85B | 5.36 | 10.83% | 7.08% | -14.20% | -12.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | HK$1.48B | 16.04 | 0.59% | 3.46% | 8.21% | -57.24% | |
51 Neutral | HK$1.75B | 16.36 | 3.16% | 0.51% | -14.03% | -62.71% | |
47 Neutral | HK$3.21B | 16.81 | 6.95% | 1.00% | -16.42% | 8.50% | |
46 Neutral | HK$12.63B | 47.41 | 6.12% | 0.40% | -5.74% | 187.89% |
* Industrials Sector Average
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
5.39
-1.64
-23.35%
HK:3311
China State Construction International Holdings
8.68
0.33
3.90%
HK:2355
Baoye Group Co., Ltd. Class H
2.84
-1.18
-29.34%
HK:2068
China Aluminum International Engineering Corporation Limited Class H
1.54
-1.07
-40.96%
HK:2236
Wison Engineering Services Co., Ltd.
0.43
0.04
10.26%
HK:2520
Shanxi Installation Group Co., Ltd. Class H
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0.26
12.66%
SINOPEC Engineering (Group) Co., Ltd. Class H Corporate Events
SINOPEC Engineering reshapes board leadership and key governance committees
Sep 30, 2026
SINOPEC Engineering (Group) Co., Ltd. has appointed Mr. Zheng Lijun as chairman of the board following the sixteenth meeting of the fifth session of directors held on 30 September 2026. The move places Zheng in a central leadership role, reflectin...
SINOPEC Engineering Updates Board and Committee Structure
Sep 30, 2026
SINOPEC Engineering (Group) Co., Ltd. has announced an updated composition of its board of directors, delineating executive, non-executive and independent non-executive members, including an employee representative director. The disclosure clarifi...
SINOPEC Engineering Shareholders Approve New Board Appointments at 2026 EGM
Sep 30, 2026
SINOPEC Engineering (Group) Co., Ltd., a Hong Kong-listed engineering services provider for the petrochemical and energy industries, delivers EPC and related solutions for large industrial projects in China and abroad. Its corporate governance is ...
SINOPEC Engineering refreshes board with senior Sinopec group executives
Sep 10, 2026
SINOPEC Engineering (Group) Co., Ltd. has proposed the appointment of Mr. Zheng Lijun as an executive director and Mr. Peng Qianbing as a non-executive director, subject to shareholder approval at an extraordinary general meeting in 2026. Zheng, a...
SINOPEC Engineering Updates Board and Committee Roles
Sep 10, 2026
SINOPEC Engineering (Group) Co., Ltd. has announced the current composition of its Board of Directors, detailing executive, non-executive, and independent non-executive members, including an employee representative director. The disclosure also ou...
Sinopec Engineering Calls 2026 EGM to Elect New Board Directors
Sep 10, 2026
SINOPEC Engineering (Group) Co., Ltd. has called its first extraordinary general meeting of 2026 to be held in Beijing on 30 September, aiming to approve changes to the composition of its fifth-session board. Shareholders of both domestic and H sh...
SINOPEC Engineering Launches HKD100–150 Million H-Share Buyback Plan
Aug 16, 2026
SINOPEC Engineering (Group) Co., Ltd., a PRC-based engineering and EPC services provider to the energy and petrochemical industries, is listed in Hong Kong through H shares that give international investors exposure to its large-scale industrial p...
SINOPEC Engineering Publishes Audited Interim Results for First Half of 2026
Aug 16, 2026
SINOPEC Engineering (Group) Co., Ltd. has released its audited interim results for the six months ended 30 June 2026, prepared under International Financial Reporting Standards and reviewed by BDO Limited, which issued a standard unqualified audit...
SINOPEC Engineering Board Approves Interim Results, Dividend and Share Buyback Plan
Aug 16, 2026
SINOPEC Engineering (Group) Co., Ltd. has announced that its board of directors held the fourteenth meeting of the fifth session on 14 August 2026, approving a series of key operational and financial reports for the first half of the year. The boa...
SINOPEC Engineering Declares 2026 Interim Dividend for H Shareholders
Aug 16, 2026
SINOPEC Engineering (Group) Co., Ltd. has approved an interim dividend distribution for 2026 after reporting net profits attributable to shareholders of RMB1.116 billion for the six months ended 30 June 2026. The board set the interim dividend at ...
SINOPEC Engineering Declares Interim 2026 Dividend and Sets Tax Terms
Aug 16, 2026
SINOPEC Engineering (Group) Co., Ltd. has declared an interim ordinary cash dividend of RMB 0.127 per H share for the six months ended 30 June 2026, equivalent to HKD 0.1477 based on the stated exchange rate. The dividend will go ex on 10 Septembe...
SINOPEC Engineering Sets August Board Meeting on Interim Results and Profit Distribution
Aug 4, 2026
SINOPEC Engineering (Group) Co., Ltd. has scheduled a board meeting for 14 August 2026 in Beijing to review and approve the interim financial results for the six months ended 30 June 2026. The board will also consider an interim profit distributio...
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.