China Petroleum & Chemical Corp Class H 00386

Morningstar Rating
HK$4.44 −0.07 (1.44%)
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Company Report

Weak Downstream Demand Continues to Weigh on Sinopec's Earnings

China Petroleum & Chemical, better known as Sinopec, is the listed arm of one of China's two integrated oil majors and one of Asia's largest refiners and chemical companies in terms of revenue. Owing in part to historical legacy, Sinopec’s revenue and assets are more heavily weighted toward its downstream activities, and the company relies on external sources of oil to meet its refining and processing needs. As a result, Sinopec’s earnings are generally less sensitive to oil price swings than those of its peer, PetroChina, and so it benefits less in a rising oil price environment but is also more stable when prices fall.

Price vs Fair Value

00386 is trading at a LOCK|^#hw!<& premium.
Price
HK$4.44
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
LOCK|RZB
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The potential spinoff of its marketing division should provide a one-time gain to Sinopec and help strengthen its financial position.

Bears

As a state-owned company, Sinopec could place national interests, such as maintaining full employment, above those of investors, constraining cost cuts more than expected.

News

Trading Information

Previous Close Price
HK$4.51
Day Range
HK$4.42–4.52
52-Week Range
HK$3.98–5.70
Bid/Ask
HK$4.39 / HK$4.44
Shares Outstanding
120.68B
Market Cap
HK$535.83B
Volume/Avg
132M / 107M

Key Statistics

Price/Earnings (Normalized)
9.71
Price/Sales
0.17
Dividend Yield (Trailing)
5.66%
Dividend Yield (Forward)
5.51%
Dividend Payment Schedule
Jun, Oct
Total Yield
5.93%

Company Profile

China Petroleum & Chemical, or Sinopec, is one of China's national oil companies and one of Asian's largest integrated oil companies in revenue. Its income is derived primarily from refining and marketing of oil products and petrochemical production. Sinopec has China's largest petrol station network with over 30,000 stations and enjoys a significant market share in petrochemicals. Established in 2000 by China Petrochemical Corporation, a stateowned enterprise and majority shareholder, the company also owns oil and gas assets in Shandong and Sichuan provinces. It has a smaller global upstream presence than its peers, PetroChina and CNOOC. In 2025, Sinopec’s production of oil and gas equivalent was 525.28 million barrels. The firm also processed 250.33 million metric tons of crude oil.
Sector
Energy
Industry
Oil & Gas Integrated
Stock Style Box
Large Value
Total Number of Employees
340,966

Competitors

Valuation

Metric
00386
XOM
00857
Price/Earnings (Normalized)
9.7121.649.01
Price/Book Value
0.552.820.94
Price/Sales
0.172.080.54
Price/Cash Flow
2.9711.323.54
Price/Earnings
00386
XOM
00857

Financial Strength

Metric
00386
XOM
00857
Quick Ratio
0.400.740.68
Current Ratio
0.861.041.15
Interest Coverage
3.4459.5215.35
Quick Ratio
00386
XOM
00857

Profitability

Metric
00386
XOM
00857
Return on Assets (Normalized)
2.26%8.50%7.42%
Return on Equity (Normalized)
5.87%14.95%13.51%
Return on Invested Capital (Normalized)
3.86%12.72%10.25%
Return on Assets
00386
XOM
00857

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