Sinopec Earnings: Sequential Weakness Within Expectations; H‑Shares Undervalued
Sinopec's first-half net profit rose 12% year over year. However, second-quarter earnings fell 50% sequentially, driven by weaker refining and marketing performance.
China Petroleum & Chemical Corp Class H 00386
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
-
Sinopec Shares Hit Three-Month High After First-Half Profit Jumps
-
Sinopec's First-Half Profit Rose Amid Continued Energy-Market Uncertainty
-
Sinopec-Chartered VLCC Yuan Hua Hu Crosses Hormuz Strait With Basrah Crude — OPIS
-
Mideast Crisis Buoys China Energy Majors, But Not For Long
-
Sinopec April Paraxylene CP Up Amid Stable Demand — OPIS
-
Sinopec Reports Profit Rise as Oil Prices Climb Amid Iran War
-
Sinopec Cuts Benzene Price as Cease-fire Eases Energy Fears, but Volatility Persists — OPIS
-
Sinopec's March Paraxylene CP Settles 32% Higher on Tight Supply — OPIS
Trading Information
- Previous Close Price
- HK$4.42
- Day Range
- HK$4.34–4.39
- 52-Week Range
- HK$3.98–5.70
- Bid/Ask
- HK$4.36 / HK$4.37
- Shares Outstanding
- 120.68B
- Market Cap
- HK$525.57B
- Volume/Avg
- 64M / 130M
Key Statistics
- Price/Earnings (Normalized)
- 9.67
- Price/Sales
- 0.17
- Dividend Yield (Trailing)
- 5.68%
- Dividend Yield (Forward)
- 5.53%
- Dividend Payment Schedule
- Jun
- Total Yield
- 5.96%
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
- Website
- http://www.sinopec.com
Competitors
Valuation
|
Metric
|
00386
|
XOM
|
00857
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.67 | 19.91 | 8.98 |
Price/Book Value | 0.55 | 2.60 | 0.94 |
Price/Sales | 0.17 | 1.92 | 0.54 |
Price/Cash Flow | 2.96 | 10.41 | 3.52 |
Price/Earnings
00386
XOM
00857
Financial Strength
|
Metric
|
00386
|
XOM
|
00857
|
|---|---|---|---|
Quick Ratio | 0.40 | 0.74 | 0.68 |
Current Ratio | 0.86 | 1.04 | 1.15 |
Interest Coverage | 3.44 | 59.52 | 15.35 |
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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United States