# China Petroleum & Chemical (600028.SHG)

Canonical: https://gigainvestors.com/s/600028.SHG

Analysis as of: 2026-10-16T07:33:42.204Z. Financial observations: FY1998–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 5.42 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.34×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.03×

- FY2018: 0.03×

- FY2019: 0.03×

- FY2020: 0.01×

- FY2021: 0.03×

- FY2022: 0.02×

- FY2023: 0.03×

- FY2024: 0.02×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 12.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 7.0%

- ROIC, second-lowest year: 2.8%

- Typical minus recent gross margin: 12.8 pp

- Typical gross margin (annual median): 20.5%

- Recent gross margin (lower of latest and 3-year median): 7.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.6%

- ROIC including acquisitions, ten-year median: 3.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 7.6%

- FY2017: 8.5%

- FY2018: 9.8%

- FY2019: 7.5%

- FY2020: 1.4%

- FY2021: 8.7%

- FY2022: 6.2%

- FY2023: 6.6%

- FY2024: 5.1%

- FY2025: 2.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 4.3B

- Net income, five-year total: CNY 278B

- Return on incremental invested capital: -5.3%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.9 pp

- Working capital / revenue, final three-year average: 3.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.48×

- FY2022: 0.45×

- FY2023: -0.65×

- FY2024: -0.29×

- FY2025: -0.28×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 8.5% vs 5.1%

- Per-share earnings: 0.38 to 0.40 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: CNY 93B

- Cumulative retained earnings: CNY 69B

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.5%

- Per-share value change: CNY 0.02

- Per-share value, starting three-year median: CNY 0.38

- Per-share value, ending three-year median: CNY 0.40

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.4%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 134B

- Cumulative net income, 10 years: CNY 528B

- ROIC, first three-year median: 8.5%

- ROIC, last three-year median: 5.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.38

- FY2017: CNY 0.42

- FY2018: CNY 0.51

- FY2019: CNY 0.47

- FY2020: CNY 0.27

- FY2021: CNY 0.59

- FY2022: CNY 0.56

- FY2023: CNY 0.49

- FY2024: CNY 0.40

- FY2025: CNY 0.26

### accounting: pass

- Sloan accruals: -6.5%

- Receivables to sales index (DSRI): 1.46×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.52×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.19×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -11.2%

- FY2017: -8.8%

- FY2018: -7.2%

- FY2019: -5.4%

- FY2020: -7.7%

- FY2021: -8.1%

- FY2022: -2.5%

- FY2023: -5.1%

- FY2024: -4.8%

- FY2025: -6.5%

## Holders

## Price story

Down 22% since Sep 2024 · "Sinopec Profit Slumps in 2025 as Oil Prices and Chemicals Weigh" (finance.yahoo.com, Mar 2026) · sales -17.1%

Story as of 2026-10-16T09:59:57.373Z; price observation 2026-10-15.

- 2025-08-21: Sinopec’s First-Half Net Profit Slid on Low Oil Prices ([finance.yahoo.com](https://finance.yahoo.com/m/9c8e96f2-347b-3563-8b2e-51d05a64516c/sinopec%E2%80%99s-first-half-net.html))

- 2026-03-23: Sinopec Profit Slumps in 2025 as Oil Prices and Chemicals Weigh ([finance.yahoo.com](https://finance.yahoo.com/sectors/energy/articles/sinopec-profit-slumps-2025-oil-043738720.html))

### Sales · FY2024–2025

sales -17.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 1.93T 

- FY2017: CNY 2.36T 

- FY2018: CNY 2.89T 

- FY2019: CNY 2.96T 

- FY2020: CNY 2.10T 

- FY2021: CNY 2.74T 

- FY2022: CNY 3.32T 

- FY2023: CNY 3.21T 

- FY2024: CNY 3.07T 

- FY2025: CNY 2.55T 

### Gross margin · FY2025

gross margin 7.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 28.5% 

- FY2017: 25.0% 

- FY2018: 20.7% 

- FY2019: 19.9% 

- FY2020: 24.3% 

- FY2021: 24.2% 

- FY2022: 19.1% 

- FY2023: 20.0% 

- FY2024: 20.3% 

- FY2025: 7.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas integrated; annual sales are CNY 2.5 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2025: revenue 2547616000000; grossProfit 194880000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600028.SHG: China Petroleum & Chemical Corporation, an energy and chemical company, engages in the oil and gas and chemical operations in Mainland China. It operates through Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others segments. The company explores and develops oil fields; produces and sells crude oil and natural gas; processes, purifies, imports, and trades in crude oil; manufactures, produces, sells, stores, and trades in petroleum products; owns and operates oil depots and service stations; and produces, markets, distributes, and sells refined petroleum products, including gasoline and diesel. It also manufactures, sells, markets, and distributes petrochemicals and derivative petrochemical products, and other chemical products, such as basic organic chemicals, synthetic resins, synthetic fiber monomers and polymers, synthetic fibers, synthetic rubber, and chemical fertilizers. In addition, the company explores, produces, and sells petroleum and natural gas; produces, stores, transports, and sells petrochemical and coal chemical products; produces and sells catalyst products, lubricant base oil, polyester chips and fibers, plastics, and petrochemical materials; and offers crude oil jetty and natural gas pipeline transmission services. Further, it engages in the production, sale, research, and development of ethylene and downstream byproducts; import and export of petroleum, natural gas, petroleum products, petrochemical, other chemical products, and other commodities and technologies; research, development, and application of technologies and information; hydrogen energy business and related services, such as hydrogen production, storage, transportation, and sales; and battery charging and swapping, solar energy, wind energy, and other new energy business and related services. The company was incorporated in 2000 and is based in Beijing, China. China Petroleum & Chemical Corporation operates as a subsidiary of China Petrochemical Corporation.

### Why customers stay

Margins ranged from 7.6% to 20.3% during 2023–25; it earns 7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2023: grossProfit / revenue = 20%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2024: grossProfit / revenue = 20.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2025: grossProfit / revenue = 7.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); 10-year return on capital observations [[2016,0.07588748132588165],[2017,0.08523513672606531],[2018,0.09766621082033805],[2019,0.07471047242329541],[2020,0.01366419458180235],[2021,0.0872216929520687],[2022,0.06212064862612075],[2023,0.06555066950906527],[2024,0.05051851491849742],[2025,0.027995888472818125]]; median 0.07013057096618033. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 1.6 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2016: growth capex 0; upkeep 65467000000; owner earnings 98370000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2017: growth capex 0; upkeep 63541000000; owner earnings 109769000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2018: growth capex 0; upkeep 94753000000; owner earnings 80859000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2019: growth capex 24911662681.398712; upkeep 104733337318.60129; owner earnings 46957662681.39871. Growth capex / owner earnings = 0.5305132593677185.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2020: growth capex 0; upkeep 117874000000; owner earnings 11325000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2021: growth capex 46070000000; upkeep 98851000000; owner earnings 34893800000. Growth capex / owner earnings = 1.3202918570061157.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2022: growth capex 58648000000; upkeep 95096000000; owner earnings 30450800000. Growth capex / owner earnings = 1.9259920921617824.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); Dividend observations: [[2016,16876000000],[2017,32689000000],[2018,67799000000],[2019,31479000000],[2020,23004000000],[2021,15739000000],[2022,37532000000],[2023,40760000000],[2024,42108000000],[2025,16974000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); FY2025: cash repurchases 1554000000 CNY.

### Are managers owners

Insiders own 88.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600028.SHG SharesStats.PercentInsiders = 88.657 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:42.204Z); Closing price 5.42 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 21.02218884863888; price multiple 0.25782281945159713. FY2025 cash earnings/share -0.07351613621923143. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 5.01 per share

- 2016-11: CNY 5.12 per share

- 2016-12: CNY 5.41 per share

- 2017-01: CNY 6.03 per share

- 2017-02: CNY 5.75 per share

- 2017-03: CNY 5.74 per share

- 2017-04: CNY 5.78 per share

- 2017-05: CNY 6.27 per share

- 2017-06: CNY 5.93 per share

- 2017-07: CNY 6.11 per share

- 2017-08: CNY 6.01 per share

- 2017-09: CNY 5.90 per share

- 2017-10: CNY 5.97 per share

- 2017-11: CNY 6.03 per share

- 2017-12: CNY 6.13 per share

- 2018-01: CNY 7.08 per share

- 2018-02: CNY 6.41 per share

- 2018-03: CNY 6.48 per share

- 2018-04: CNY 6.91 per share

- 2018-05: CNY 7.05 per share

- 2018-06: CNY 6.49 per share

- 2018-07: CNY 6.76 per share

- 2018-08: CNY 6.84 per share

- 2018-09: CNY 7.12 per share

- 2018-10: CNY 6.31 per share

- 2018-11: CNY 5.90 per share

- 2018-12: CNY 5.05 per share

- 2019-01: CNY 5.73 per share

- 2019-02: CNY 6.01 per share

- 2019-03: CNY 5.74 per share

- 2019-04: CNY 5.66 per share

- 2019-05: CNY 5.43 per share

- 2019-06: CNY 5.47 per share

- 2019-07: CNY 5.27 per share

- 2019-08: CNY 4.98 per share

- 2019-09: CNY 5.02 per share

- 2019-10: CNY 4.90 per share

- 2019-11: CNY 4.99 per share

- 2019-12: CNY 5.11 per share

- 2020-01: CNY 4.94 per share

- 2020-02: CNY 4.60 per share

- 2020-03: CNY 4.43 per share

- 2020-04: CNY 4.46 per share

- 2020-05: CNY 4.14 per share

- 2020-06: CNY 3.91 per share

- 2020-07: CNY 4.00 per share

- 2020-08: CNY 4.03 per share

- 2020-09: CNY 3.91 per share

- 2020-10: CNY 3.90 per share

- 2020-11: CNY 4.19 per share

- 2020-12: CNY 4.03 per share

- 2021-01: CNY 3.95 per share

- 2021-02: CNY 4.51 per share

- 2021-03: CNY 4.33 per share

- 2021-04: CNY 4.28 per share

- 2021-05: CNY 4.42 per share

- 2021-06: CNY 4.36 per share

- 2021-07: CNY 3.99 per share

- 2021-08: CNY 4.26 per share

- 2021-09: CNY 4.46 per share

- 2021-10: CNY 4.25 per share

- 2021-11: CNY 4.04 per share

- 2021-12: CNY 4.23 per share

- 2022-01: CNY 4.19 per share

- 2022-02: CNY 4.33 per share

- 2022-03: CNY 4.32 per share

- 2022-04: CNY 4.34 per share

- 2022-05: CNY 4.46 per share

- 2022-06: CNY 4.08 per share

- 2022-07: CNY 4.11 per share

- 2022-08: CNY 4.27 per share

- 2022-09: CNY 4.29 per share

- 2022-10: CNY 4.07 per share

- 2022-11: CNY 4.53 per share

- 2022-12: CNY 4.36 per share

- 2023-01: CNY 4.52 per share

- 2023-02: CNY 4.66 per share

- 2023-03: CNY 5.62 per share

- 2023-04: CNY 6.71 per share

- 2023-05: CNY 6.36 per share

- 2023-06: CNY 6.36 per share

- 2023-07: CNY 6.20 per share

- 2023-08: CNY 6.07 per share

- 2023-09: CNY 6.07 per share

- 2023-10: CNY 5.46 per share

- 2023-11: CNY 5.47 per share

- 2023-12: CNY 5.58 per share

- 2024-01: CNY 5.96 per share

- 2024-02: CNY 6.25 per share

- 2024-03: CNY 6.39 per share

- 2024-04: CNY 6.35 per share

- 2024-05: CNY 6.45 per share

- 2024-06: CNY 6.32 per share

- 2024-07: CNY 6.49 per share

- 2024-08: CNY 6.81 per share

- 2024-09: CNY 6.96 per share

- 2024-10: CNY 6.18 per share

- 2024-11: CNY 6.36 per share

- 2024-12: CNY 6.68 per share

- 2025-01: CNY 6.08 per share

- 2025-02: CNY 5.78 per share

- 2025-03: CNY 5.73 per share

- 2025-04: CNY 5.66 per share

- 2025-05: CNY 5.78 per share

- 2025-06: CNY 5.64 per share

- 2025-07: CNY 6.01 per share

- 2025-08: CNY 5.71 per share

- 2025-09: CNY 5.29 per share

- 2025-10: CNY 5.47 per share

- 2025-11: CNY 5.78 per share

- 2025-12: CNY 6.18 per share

- 2026-01: CNY 6.51 per share

- 2026-02: CNY 6.46 per share

- 2026-03: CNY 5.88 per share

- 2026-04: CNY 5.39 per share

- 2026-05: CNY 4.85 per share

- 2026-06: CNY 4.46 per share

- 2026-07: CNY 5.26 per share

- 2026-08: CNY 5.46 per share

- 2026-09: CNY 5.28 per share

- 2026-10: CNY 5.46 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 4.11 per share, central CNY 4.55 per share, high CNY 5.15 per share

- FY2017: low CNY 5.38 per share, central CNY 5.92 per share, high CNY 6.66 per share

- FY2018: low CNY 9.63 per share, central CNY 12.46 per share, high CNY 14.40 per share

- FY2019: low CNY 8.17 per share, central CNY 9.26 per share, high CNY 10.65 per share

- FY2020: low CNY 6.59 per share, central CNY 7.32 per share, high CNY 8.30 per share

- FY2021: low CNY 5.36 per share, central CNY 5.90 per share, high CNY 6.62 per share

- FY2022: low CNY 4.43 per share, central CNY 4.96 per share, high CNY 5.66 per share

- FY2023: low CNY 3.42 per share, central CNY 3.79 per share, high CNY 4.29 per share

- FY2024: low CNY 2.12 per share, central CNY 2.35 per share, high CNY 2.63 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.