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China Petroleum & Chemical Corporation (600028) Fair Value & Analysis

Energy · CN · Market cap 608B CNY

CP China Petroleum & Chemical Corporation 600028 · SHG
Price¥5.08
Fair Value¥5.60
Upside+10.2%
Quality45/100
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Mixed Growth
Thin margins · 1.3% net margin
Low debt · generates free cash flow
4.01% dividend yield
Mixed vs. peers (7/15)
Narrow moat 29/100
Evidence: Medium Range ¥3.46 – ¥7.00 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Fair value updated Jul 18, 2026, revised from ¥4.46 to ¥5.60 (+25.5%) since Jul 7, 2026. Share price +5.8% over the past month.

Below-average quality, screening 10% undervalued on our models.

What matters now

  • A fairly wide model range (¥3.46 to ¥7.00) leaves room in how you read the outcome.
  • Our model range runs from ¥3.46 (bear) to ¥7.00 (bull), base ¥5.60. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 45/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

¥7.64 ¥2.88 Fair Value ¥5.60 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ¥2.88 – ¥7.64 · fair‑value band ¥3.46 – ¥7.00 · the ¥5.08 price screens below the ¥5.60 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

China Petroleum & Chemical Corporation (600028) currently trades at ¥5.08, while our model-based Fair Value estimate is ¥5.60, implying the stock looks roughly 10.2% undervalued today. We read business quality at 45/100 (below-average quality), in the Energy sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, China Petroleum & Chemical Corporation generated revenue of 2.8T CNY at a net margin of 1.3%. Revenue declined 3.9% year over year. It earns a return on equity of 4.1%. Net debt stands at 445B CNY. Fundamentals as of Jul 18, 2026

Our scenario range runs from ¥3.46 (bear case) to ¥7.00 (bull case); at ¥5.08, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 37% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at -25% fair-value upside, at 10%, 600028 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥3.44 ¥5.38 ¥8.22 80
Residual Income ¥5.19 ¥5.18 ¥4.75 76
Rev-Margin DCF ¥2.72 ¥4.56 ¥6.60 74
All 26 models by family
DCF Models
FCF DCF ¥3.32 ¥5.44 ¥8.71 38
Owner Earnings ¥1.81 ¥3.13 ¥5.17 31
5Y Revenue Exit ¥2.72 ¥4.53 ¥6.77 39
5Y EBITDA Exit ¥8.70 ¥15.40 ¥23.11 41
5Y P/E Exit ¥2.97 ¥4.98 ¥7.03 38
10Y Revenue Exit ¥2.80 ¥4.50 ¥6.66 36
10Y EBITDA Exit ¥6.76 ¥12.11 ¥19.10 37
10Y P/E Exit ¥3.06 ¥4.82 ¥6.85 35
Earnings-Based
Graham-Dodd ¥1.78 ¥4.79 ¥6.27 54
Lynch FV ¥0.9300 ¥1.33 ¥1.73 50
PEG = 1.0 ¥0.9300 ¥1.33 ¥1.73 46
EPV ¥2.26 ¥2.77 ¥3.23 59
Dividend Discount
Gordon GGM ¥1.35 ¥2.94 ¥4.95 70
DDM Multi-Stage ¥1.35 ¥2.13 ¥3.01 61
Multiples
P/E Multiple ¥3.94 ¥5.25 ¥6.56 63
P/S Multiple ¥3.35 ¥4.46 ¥5.58 58
P/B Multiple ¥3.35 ¥4.46 ¥5.58 55
EV/EBIT ¥4.17 ¥5.79 ¥7.40 53
EV/EBITDA ¥13.12 ¥17.72 ¥22.32 54
EV/Revenue ¥2.59 ¥3.99 ¥5.39 43
Asset-Based
NCAV (Graham) ¥3.43 ¥4.59 ¥6.85 50
Growth DCF
Growth DCF ¥3.44 ¥5.38 ¥8.22 80
Rev-Margin DCF ¥2.72 ¥4.56 ¥6.60 74
Economic Profit
Residual Income ¥5.19 ¥5.18 ¥4.75 76
ROIC Compounder ¥2.26 ¥2.77 ¥3.23 72
Growth Earnings
Growth-Adj P/E ¥3.11 ¥4.45 ¥5.78 68

Widest divergence: DCF Models (¥4.82) versus Earnings-Based (¥1.33). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 2.8T CNY
Revenue growth (YoY) -3.9%
Net margin 1.3%
Return on equity 4.1%
Free cash flow 42.1B CNY FY2025
P/E ratio 18.6
More key figures
Operating margin 3.6%
EPS (TTM) ¥0.2700
Dividend yield 4.2%
EPS growth (YoY) +27.8%
Net debt 445B CNY FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 46 · Market factors (momentum, volatility) 41

Profitability 34
Margins and returns on capital today
Quality Growth 21
Are margins and returns improving?
Cashflow 39
Earnings quality: real cash, not paper profit
Fin. Strength 39
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 22
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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. The company operates as a subsidiary of China Petrochemical Corporation.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Petroleum & Chemical Corporation reported revenue of ¥2.5T in FY2025 versus ¥2.7T in FY2021, a compound −1.8%/yr. Reported net income was ¥31.8B in FY2025, compounding −18.5%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
2.5T CNY
Latest YoY
−17.1%
Avg. growth/yr (3Y)
−8.4%
Avg. growth/yr (5Y)
+3.9%
Avg. growth/yr (27Y)
+10.1%
Revenue −1.8%/yr
FY21 ¥2.7T
FY22 ¥3.3T
FY23 ¥3.2T
FY24 ¥3.1T
FY25 ¥2.5T
Net income −18.5%/yr
FY21 ¥72.0B
FY22 ¥66.9B
FY23 ¥58.3B
FY24 ¥48.9B
FY25 ¥31.8B

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Cite: Fair Value Calculator (2026). "China Petroleum & Chemical Corporation Fair Value". https://www.fairvalue-calculator.com/stock/600028

Peer Group

Oil & Gas Integrated · 54 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Bottom 25%
Fair Value upside +10% · Above median
Return on equity (TTM) 4% · Bottom 25%
Return on assets 2% · Bottom 25%
Net margin (TTM) 1% · Bottom 25%
Operating margin (TTM) 4% · Bottom 25%
Revenue growth -4% · Below median
Dividend yield (TTM) 4.0% · Above median
Debt / equity 0.28× · Higher than median

Valuation Multiples vs Oil & Gas Integrated median · lower = cheaper

P/E (TTM) 18.6× · Pricier than median
P/B 0.73× · Cheaper than 75% of peers
P/S (TTM) 0.22× · Cheaper than 75% of peers
P/FCF 2.1× · Cheaper than median
EV/EBITDA 4.1× · Cheaper than median
PEG 0.74× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 47 · sector 11
FUTURE 0 · sector 7
PAST 17 · sector 45
HEALTH 86 · sector 87
DIVIDEND 80 · sector 79

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Integrated stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Saudi Arabian Oil Company 2222 26.72 SAR 20.14 SAR -25%
Exxon Mobil Corporation XOM $144.51 $90.37 -37%
Chevron Corporation CHEV C$22.88 C$7.97 -65%
PetroChina Company 601857 ¥10.29 ¥16.51 +60%
Shell plc SHELL €38.04 €46.09 +21%
TotalEnergies SE TTE C$13.80 C$7.92 -43%
Petróleo Brasileiro S.A PETR3 12,540 ARS 30,914 ARS +147%
BP p.l.c., an integrated energy company, BP $40.83 $12.71 -69%
Equinor ASA EQNR $36.19 $34.53 -5%
Eni S.p.A ENI €21.70 €15.13 -30%

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Frequently asked questions

Is China Petroleum & Chemical Corporation (600028) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ¥5.60 versus a price of ¥5.08, about +10% (undervalued).
What is the fair value of 600028?
Our model-based fair value for China Petroleum & Chemical Corporation is ¥5.60 (as of Jul 18, 2026), built from audited fundamentals. The current price is ¥5.08.
What is the quality score of 600028?
China Petroleum & Chemical Corporation has a Quality Score of 45/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of China Petroleum & Chemical Corporation (600028)?
China Petroleum & Chemical Corporation reported trailing-twelve-month revenue of about 2.8T CNY (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 600028?
The net profit margin of China Petroleum & Chemical Corporation is about 1.3%, meaning it keeps roughly 1.3% of revenue as net income. Based on the latest reported figures.
Does China Petroleum & Chemical Corporation pay a dividend?
China Petroleum & Chemical Corporation currently shows a dividend yield of about 4.15% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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