Is There Now an Opportunity in Sinopec After Investor Interest Boosts Energy Sector Focus?

Simply Wall St.

Nov 05

Wondering if China Petroleum & Chemical stock is a hidden gem or just fairly priced? You are not alone in wanting to crack the code on its real value. The stock has seen some movement lately, dipping ...

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The stock has seen some movement lately, dipping ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/energy/hkg-386/china-petroleum-chemical-shares/news/is-there-now-an-opportunity-in-sinopec-after-investor-intere\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is There Now an Opportunity in Sinopec After Investor Interest Boosts Energy Sector Focus?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs There Now an Opportunity in Sinopec After Investor Interest Boosts Energy Sector Focus?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-05 20:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/energy/hkg-386/china-petroleum-chemical-shares/news/is-there-now-an-opportunity-in-sinopec-after-investor-intere><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wondering if China Petroleum & Chemical stock is a hidden gem or just fairly priced? You are not alone in wanting to crack the code on its real value. The stock has seen some movement lately, dipping ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/energy/hkg-386/china-petroleum-chemical-shares/news/is-there-now-an-opportunity-in-sinopec-after-investor-intere\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0359201885.HKD","symbol_name":"BGF CHINA \"A2\" (HKD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/hk/energy/hkg-386/china-petroleum-chemical-shares/news/is-there-now-an-opportunity-in-sinopec-after-investor-intere","article_id":"2581772716","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/1031000-choice2-main-header/1585186666598"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/energy/hkg-386/china-petroleum-chemical-shares/news/is-there-now-an-opportunity-in-sinopec-after-investor-intere","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2581772716","pubTimestamp":1762346213,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering if China Petroleum & Chemical stock is a hidden gem or just fairly priced? You are not alone in wanting to crack the code on its real value.\nThe stock has seen some movement lately, dipping 0.5% over the last week but up 2.4% in the past year, with an impressive climb of 78.0% over five years.\nRecent headlines have highlighted growing investor interest in the local energy sector and shifts in global fuel demand, which have contributed to a renewed focus on China Petroleum &...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0359201885.HKD":"BGF CHINA \"A2\" (HKD) ACC","LU0651947912.USD":"BGF EMERGING MARKETS EQUITY INCOME \"A5G\" (USD) INC","LU2097828805.USD":"AZ EQUITY CHINA \"A-AZ\" (USD) ACC","BK1562":"石化股","LU0140636845.USD":"施罗德大中华区股票A Acc","LU0828237940.HKD":"SCHRODER ISF EMERGING ASIA \"A\" (HKD) ACC","LU2097828474.EUR":"AZ EQUITY CHINA \"A\" (EUR) ACC A","LU0823426480.USD":"法巴中国股票经典Dis","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU1051769294.HKD":"BGF EMERGING MARKETS EQUITY INCOME \"A6\"(HKDHDG) INC","LU0823426308.USD":"法巴中国股票基金","LU0651946864.USD":"贝莱德新兴市场股票收益A2","LU0293314216.USD":"ALLIANZ GEM EQUITY HIGH DIVIDEND \"A\" (USD) ACC","LU1188198961.HKD":"SCHRODER ISF CHINA OPPORTUNITIES \"A\" (HKD) INC QV","LU0173614495.USD":"富达中国焦点A","00386":"中国石油化工股份","LU0244354667.USD":"SCHRODER ISF CHINA OPPORTUNITIES \"A\" ACC","BK1521":"挪威政府全球养老基金持仓","LU0359201612.USD":"贝莱德中国基金A2","LU1051768304.USD":"贝莱德新兴市场股票收益A6","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H","LU1023057109.AUD":"BGF CHINA \"A2\" (AUDHDG) ACC","LU1282651048.USD":"ALLIANZ GEM EQUITY HIGH DIVIDEND \"AMG\" (USD) INC","LU0348805143.USD":"ALLIANZ ENHANCED ALL CHINA EQUITY \"A\" (USD) INC","LU0326950275.SGD":"Schroder ISF China Opportunities A Acc SGD-H","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","LU0181495838.USD":"施罗德新兴亚洲A Acc","LU1831875114.USD":"SCHRODER ISF ALL CHINA EQUITY \"A\" (USD) ACC","LU2097828557.USD":"AZ EQUITY CHINA \"A\" (USD) ACC","BK1528":"石油股票概念","BK1226":"综合性石油与天然气企业","LU2097828631.EUR":"AZ EQUITY CHINA \"A\" (EUR) ACC","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","LU2097828714.EUR":"AZ EQUITY CHINA \"BAZ\" (EUR) ACC","LU0287142896.SGD":"Fidelity China Focus A-SGD","LU0463099449.HKD":"SCHRODER ISF CHINA OPPORTUNITIES \"A\" (HKD) ACC"},"translate_title":"在投资者兴趣增强能源行业关注后，中石化现在是否存在机会？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00386":0.9,"DCF":1},"content_text":"Wondering if China Petroleum & Chemical stock is a hidden gem or just fairly priced? You are not alone in wanting to crack the code on its real value. The stock has seen some movement lately, dipping 0.5% over the last week but up 2.4% in the past year, with an impressive climb of 78.0% over five years. Recent headlines have highlighted growing investor interest in the local energy sector and shifts in global fuel demand, which have contributed to a renewed focus on China Petroleum & Chemical. Ongoing policy updates on green energy initiatives and supply chain developments have further fueled the conversation around long-term prospects. The company currently scores a 3 out of 6 on our undervaluation checklist, so it is neither the cheapest nor the most expensive story on the table. Next, we will look at how standard valuation methods rate the stock, but stick around because there is an even sharper way to frame the big picture that you will want to see by the end of this article.  Find out why China Petroleum & Chemical's 2.4% return over the last year is lagging behind its peers. AdvertisementApproach 1: China Petroleum & Chemical Discounted Cash Flow (DCF) Analysis The Discounted Cash Flow (DCF) model is a widely used method for valuing companies by projecting their future cash flows and discounting them back to today’s value. Essentially, it estimates what the business is worth now based on how much cash it is expected to generate over time. For China Petroleum & Chemical, the current trailing twelve months Free Cash Flow stands at approximately CN¥17.3 Billion. Based on analyst estimates and further extrapolations, free cash flow is projected to grow steadily, reaching around CN¥58.6 Billion in the year 2035. It is important to note that only the first five years of projections are based on analyst input. Figures beyond that are calculated by proprietary models. By discounting these future cash flows back to their present value, the DCF model estimates the intrinsic value per share at HK$8.49. This calculation implies the stock is trading at a 50.5% discount to its intrinsic value, which suggests it may be undervalued at current prices. In other words, based on future cash flow potential, there is significant value not currently recognized by the market. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests China Petroleum & Chemical is undervalued by 50.5%. Track this in your watchlist or portfolio, or discover 840 more undervalued stocks based on cash flows. 386 Discounted Cash Flow as at Nov 2025 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for China Petroleum & Chemical. Approach 2: China Petroleum & Chemical Price vs Earnings (PE) The Price-to-Earnings (PE) ratio is a popular and effective tool for valuing profitable companies like China Petroleum & Chemical. It is especially reliable when a business has consistent earnings, as it tells investors how much they are paying for each unit of earnings. What constitutes a “normal” or “fair” PE ratio depends on several factors, including the company’s expected earnings growth and perceived risk. Higher growth potential or lower risk typically commands a higher PE ratio, while slower growth or higher risk results in a lower multiple. China Petroleum & Chemical currently trades at a PE ratio of 13.0x. For context, the average PE among industry peers is 9.5x, while the broader Oil and Gas industry sits at 13.0x. This shows the company is valued right at the industry benchmark but above its immediate peers. Instead of relying solely on industry averages or peer comparisons, Simply Wall St has developed a proprietary Fair Ratio. The Fair Ratio refines the concept of fair value by considering not only industry and size, but also unique factors like the company’s historical earnings growth, profit margins, risk profile, and market cap. This provides a more holistic view of what a reasonable PE should look like for this specific company. For China Petroleum & Chemical, the Fair Ratio stands at 15.7x. With its actual PE multiple of 13.0x, the stock is trading slightly below this fair value, suggesting there could be moderate upside. Since the difference between the Fair Ratio and the actual PE is greater than 0.10, the shares appear undervalued using this approach. Result: UNDERVALUED SEHK:386 PE Ratio as at Nov 2025 PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1411 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your China Petroleum & Chemical Narrative Earlier we mentioned that there is an even better way to understand a company’s value. Let us introduce you to Narratives. A Narrative is your personal story or perspective about a company, tied directly to your assumptions about its future revenue, earnings, margins, and ultimately, its fair value. Rather than just relying on static valuation metrics, Narratives link what you believe could happen to China Petroleum & Chemical with tailored financial forecasts and a clear fair value, all presented in a dynamic, easy-to-use tool available to millions of investors on Simply Wall St’s Community page. Narratives make it much easier to decide when to buy or sell by visually comparing your Fair Value estimate with the current stock price. As news or earnings are released, Narratives are automatically updated, helping you always stay informed. For example, some investors might see China Petroleum & Chemical’s fair value as high as HK$12.40 due to bullish growth expectations, while others, taking a more cautious stance, might estimate it as low as HK$7.10. By choosing or creating your own Narrative, you capture your unique view and can make smarter, more confident decisions backed by both story and numbers. Do you think there's more to the story for China Petroleum & Chemical? Head over to our Community to see what others are saying! SEHK:386 Community Fair Values as at Nov 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}