{"id":17094,"date":"2018-04-29T13:01:18","date_gmt":"2018-04-29T17:01:18","guid":{"rendered":"http:\/\/www.pgmcapital.com\/?p=17094"},"modified":"2018-04-29T13:08:09","modified_gmt":"2018-04-29T17:08:09","slug":"why-investing-in-sinopec-can-be-lucrative-for-value-investors","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/why-investing-in-sinopec-can-be-lucrative-for-value-investors\/","title":{"rendered":"Why Investing in SINOPEC can be Lucrative for Value Investors"},"content":{"rendered":"<p>Dear PGM Blog reader,<\/p>\n<p>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.<\/p>\n<h3>INTRODUCTION:<\/h3>\n<p><b>China Petroleum &amp; Chemical Corporation<\/b>, or\u00a0<b>Sinopec <\/b>or<b> SNP<\/b>, is a Chinese\u00a0oil\u00a0and\u00a0gas\u00a0company based in\u00a0Beijing, 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).<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/1x-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17108\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/1x-1-300x192.jpg\" alt=\"\" width=\"400\" height=\"255\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/1x-1-300x192.jpg 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/1x-1-768x490.jpg 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/1x-1-1024x654.jpg 1024w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/a><\/p>\n<p>Sinopec Limited&#8217;s parent,\u00a0Sinopec Group, is one of the major state-owned\u00a0petroleum\u00a0energy and chemicals companies in\u00a0China, headquartered in\u00a0Chaoyang District,\u00a0Beijing.<\/p>\n<p>Sinopec&#8217;s business includes oil and gas exploration, refining, and marketing; production and sales of\u00a0petrochemicals, 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.<\/p>\n<p>The company is currently world&#8217;s biggest refiner by output.<\/p>\n<h3>FY-2017 EARNINGS REPORT:<\/h3>\n<p>On Sunday March 25, SINOPEC reported its fiscal year <a href=\"http:\/\/www.sinopec.com\/listco\/en\/Resource\/Pdf\/20180325036.pdf\" target=\"_blank\" rel=\"noopener\">2017 financial report<\/a> with the following highlights:<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.14.18-AM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17098\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.14.18-AM-300x216.png\" alt=\"\" width=\"600\" height=\"432\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.14.18-AM-300x216.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.14.18-AM-768x553.png 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.14.18-AM-1024x737.png 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.14.18-AM.png 1109w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p class=\"abstract__item-text\">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.<\/p>\n<ul class=\"abstract\">\n<li class=\"abstract__item\">\n<div class=\"abstract__item-text\">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.<\/div>\n<\/li>\n<\/ul>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.bloomberg.com\/api\/embed\/iframe?id=901e91d0-a108-4f5c-8131-087a513e6023\" width=\"300\" height=\"150\" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<h3>Q1-2018 FINANCIAL REPORT:<\/h3>\n<p>On Thursday April 26, SINOPEC,\u00a0announced its unaudited results for the three months ended\u00a0<span class=\"xn-chron\">March 31, 2018<\/span>.<\/p>\n<h4>Highlights:<\/h4>\n<ul>\n<li>The Company&#8217;s operating profit was\u00a0<span class=\"xn-money\">RMB 29.218 billion<\/span>, up 14.9% year-on-year.<\/li>\n<li>Net profit attributable to owners of the Company was\u00a0<span class=\"xn-money\">RMB 19.306 billion<\/span>, increased by 12.3% year-on-year.<\/li>\n<li>Basic earnings per share (&#8220;EPS&#8221;) were\u00a0<span class=\"xn-money\">RMB 0.159<\/span>, increased by 12.0% year-on-year.<\/li>\n<\/ul>\n<div class=\"hardwall\" data-position=\"2\">\n<h3>PGM CAPITAL ANALYSIS &amp; COMMENTS:<\/h3>\n<\/div>\n<div data-position=\"2\">\n<p class=\"bullets_li\">Sinopec plans to\u00a0raise capex by more than 17% this year\u00a0after posting its best annual earnings since 2013, as 2017 net income rose 10% Y\/Y to 51.1B yuan ($8.1B) and revenues rose 22% to 2.36T yuan.<\/p>\n<p class=\"bullets_li\">SNP says it is allocating 117B yuan in capital spending for 2018, up from an actual spend of 99.38B yuan last year, including a 55% jump in upstream spending to 48.5B yuan, as China\u2019s biggest refiner looks to take advantage of the recent rally in oil prices to $70\/bbl.<\/p>\n<ul class=\"abstract\">\n<li>The proposed final dividend of 0.4 Yuan per share, together with the previously paid interim dividend of 0.1 Yuan per share, gives a record high total dividend\u00a0of 0.5 yuan per share for 2017, the most since its listing in 2000 on the Hong Kong Exchange.\n<ul>\n<li>Based on the closing price of last Friday, April 27, the shares of the company have a dividend yield of 7.79 percent.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Below chart shows the performance of the shares of the company in the last 2 years.<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.43.20-AM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17103\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.43.20-AM-300x153.png\" alt=\"\" width=\"600\" height=\"306\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.43.20-AM-300x153.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.43.20-AM-768x392.png 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.43.20-AM-1024x523.png 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-29-at-11.43.20-AM.png 1638w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>Based on the above we have a BUY rating on the shares of the company.<\/p>\n<p>Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration and keep in mind that; share prices don\u2019t move in a straight line and that Past Performance Is Not Indicative Of Future Results.<\/p>\n<p>Yours sincerely,<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-14\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\" sizes=\"auto, (max-width: 112px) 100vw, 112px\" srcset=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg 160w, http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric-150x150.jpg 150w\" alt=\"\" width=\"112\" height=\"112\" \/><\/a><\/p>\n<p>Eric Panneflek<\/p>\n<\/div>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>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 &amp; Chemical Corporation, or\u00a0Sinopec or SNP, is a Chinese\u00a0oil\u00a0and\u00a0gas\u00a0company based in\u00a0Beijing, China and is listed in Hong Kong stock exchange under the symbol<a href=\"https:\/\/www.pgmcapital.com\/nl\/why-investing-in-sinopec-can-be-lucrative-for-value-investors\/\">[&#8230;]<\/a><\/p>\n","protected":false},"author":2,"featured_media":17118,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-17094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/17094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=17094"}],"version-history":[{"count":18,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/17094\/revisions"}],"predecessor-version":[{"id":17119,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/17094\/revisions\/17119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/17118"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=17094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=17094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=17094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}