Why Investing in SINOPEC can be Lucrative for Value Investors

Dear PGM Blog reader,

In this weekend blog article, we want to take the opportunity to discuss with you, why Investing in SINOPEC, can be lucrative for value investors.

INTRODUCTION:

China Petroleum & Chemical Corporation, or Sinopec or SNP, is a Chinese oil and gas company based in Beijing, China and is listed in Hong Kong stock exchange under the symbol (HKE: 0386) and also trades in Shanghai (SSE: 60028) and New York NYSE: SNP).

Sinopec Limited’s parent, Sinopec Group, is one of the major state-owned petroleum energy and chemicals companies in China, headquartered in Chaoyang District, Beijing.

Sinopec’s business includes oil and gas exploration, refining, and marketing; production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products; storage and pipeline transportation of crude oil and natural gas; import, export and import/export agency business of crude oil, natural gas, refined oil products, petrochemicals, and other chemicals.

The company is currently world’s biggest refiner by output.

FY-2017 EARNINGS REPORT:

On Sunday March 25, SINOPEC reported its fiscal year 2017 financial report with the following highlights:

As can be seen from above highlights of the FY-2017 financial report of the company net profit increases nearly 10% to 51.119 billion yuan (8.1 billion US-Dollars) in 2017.

• The board of director proposed a final dividend of RMB 0.40 per share, payable on June 14, to share holders on record on May 29, 2018.

Q1-2018 FINANCIAL REPORT:

On Thursday April 26, SINOPEC, announced its unaudited results for the three months ended March 31, 2018.

Highlights:

• The Company’s operating profit was RMB 29.218 billion, up 14.9% year-on-year.
• Net profit attributable to owners of the Company was RMB 19.306 billion, increased by 12.3% year-on-year.
• Basic earnings per share (“EPS”) were RMB 0.159, increased by 12.0% year-on-year.