China Petroleum & Chemical: Stock momentum slides with 0% drop in last 21 sessions

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China Petroleum & Chemical ($SEHK:00386) is one of the largest oil and gas companies in China. The company’s stock has been under pressure in recent months, with a 0% drop in the last 21 sessions. This has caused the stock’s momentum to slide, making it one of the worst performers in the Chinese market. The company has been hurt by the global slowdown in oil demand, as well as by the ongoing trade tensions between China and the United States. These factors have led to a sharp decline in China Petroleum & Chemical’s share price.

Despite the challenges, the company remains committed to its long-term growth strategy. It is investing heavily in new oil and gas projects, as well as in refining and petrochemical capacity. These investments should help China Petroleum & Chemical weather the current downturn and emerge as a stronger company in the future.

Share Price

On Friday, China Petroleum & Chemical’s stock opened at HK$3.4 and closed at HK$3.4, down by 0.9% from prior closing price of 3.4.

VI Analysis

China Petroleum & Chemical Corporation, or Sinopec, is a Chinese state-owned oil and gas company. It is the largest producer of crude oil and natural gas in China, and also the largest refiner and marketer of petroleum products. Sinopec has a medium risk rating according to the VI Risk Rating system. This is due to some risk warnings in its income sheet.

However, the company’s fundamentals reflect its long-term potential, making it a good investment option.

VI Peers

China Petroleum & Chemical Corp, or Sinopec, is an oil and gas company based in Beijing. It is engaged in the exploration, production, refining, and marketing of petroleum products and chemicals. The company operates in China, Hong Kong, Macau, and Taiwan. It has upstream and downstream operations in China. The company’s competitors include PetroChina Co Ltd, CNOOC Ltd, AAG Energy Holdings Ltd.

– PetroChina Co Ltd ($SHSE:601857)

PetroChina Co Ltd is a Chinese state-owned oil and gas company and one of the largest integrated energy companies in the world. The company has a market cap of 874.45B as of 2022 and a Return on Equity of 10.48%. PetroChina is involved in the exploration, development, production, and marketing of crude oil and natural gas, as well as the refining, transportation, and sale of petroleum products. The company also produces and sells chemicals, fertilizers, and other petrochemical products.

– CNOOC Ltd ($SEHK:00883)

CNOOC Ltd is a Chinese multinational oil and gas company. It is the largest producer of crude oil and natural gas in China, and also the largest offshore oil and gas producer in China. The company has a market cap of 505.91B as of 2022 and a Return on Equity of 18.82%.

– AAG Energy Holdings Ltd ($SEHK:02686)

AAG Energy Holdings Ltd is a Hong Kong-based investment holding company principally engaged in the coal business. The Company operates its business through three segments. The Coal Segment is engaged in the exploration, development, production, washing and sales of coal. The Coalbed Methane Segment is engaged in the exploration and development of coalbed methane. The New Energy Segment is engaged in the provision of solar power generation services.

Summary

The company is involved in the exploration, production, refining, and marketing of petroleum and petrochemical products. It also has a significant presence in the coal chemical industry.

However, the stock appears to be stabilizing in recent weeks, with no significant changes over the past 21 sessions. Investors may be attracted to China Petroleum & Chemical due to its strong financial position and attractive valuation. Risks to consider before investing in China Petroleum & Chemical include the potential for further declines in oil prices, which would negatively impact the company’s bottom line.

In addition, the company is heavily reliant on the Chinese economy, which could be impacted by a potential trade war with the United States.