Revenue distribution by industry:

• Petrochemicals: 45%
• Oil refinery: 30%
• Infrastructure and environment: 15%
• Other (e.g. energy generation): 10%

TOP 3 markets:

• China: 60%
• Middle East: 20%
• Southeast Asia: 10%

SINOPEC Engineering (Group) Co., Ltd. generates the majority of its revenue from petrochemicals and oil refining, reflecting the company's core competencies. The Chinese market is the largest single market, driven by strong local presence and the need for infrastructure projects. The Middle East and Southeast Asia are also significant markets benefiting from the demand for refinery and petrochemical plants.

Production Sites: China (headquarters and several production facilities)

SINOPEC Engineering (Group) Co., Ltd. is a leading company in the field of engineering, procurement, and construction (EPC) in the oil and gas industry. The company is headquartered in Beijing, China, and operates multiple production and engineering facilities within the country.

The strategic location in China enables SINOPEC to benefit from proximity to key sources of raw materials and a large domestic market. Additionally, the company has access to a broad network of suppliers and partners, which supports the efficiency of its production processes.

Strategic Priorities:

1. Diversification of Services
2. International Expansion
3. Technological Innovation

SINOPEC Engineering (Group) Co., Ltd. is pursuing a strategy of diversifying its services to grow not only in the traditional oil and gas sector but also in the areas of petrochemicals and clean energy.

The company is placing increased emphasis on international expansion, particularly in high-growth markets in Asia and Africa, to strengthen its global presence.

Another focus is on technological innovation to offer more efficient and environmentally friendly solutions. This includes investments in research and development as well as partnerships with technology companies.

Through these measures, SINOPEC Engineering aims to solidify its market position and unlock new growth opportunities.

Main Imported Raw Materials: Crude Oil, Natural Gas, Petrochemical Basics

Main Import Countries: Saudi Arabia, Russia, Angola, Iran

SINOPEC Engineering (Group) Co., Ltd., as part of the SINOPEC Group, is heavily involved in the processing of crude oil and natural gas. The main raw materials imported include crude oil and petrochemical basics needed for the production of refinery and petrochemical products.

Saudi Arabia and Russia are two of the largest suppliers of crude oil to SINOPEC, as these countries have large oil reserves and maintain close trade relations with China. Angola and Iran are also important partners supplying crude oil, supporting source diversification and ensuring supply security.

This import strategy allows SINOPEC to benefit from the different qualities and prices of raw materials while optimizing production costs.

Market Share: Approximately 10% in the Asian EPC market (2023)

Technological Expertise: Leading in refinery and petrochemical projects

Financial Stability: Solid balance sheet with an equity ratio of 45% (2023)

SINOPEC Engineering (Group) Co., Ltd. has a significant competitive advantage, especially due to its strong market position in the Asian EPC market (Engineering, Procurement, and Construction). The company benefits from its technological expertise, particularly in the field of refinery and petrochemical projects, making it a preferred partner for complex large-scale projects.

The financial stability of the company, underscored by a solid equity ratio, enables SINOPEC Engineering to invest in new technologies and enter into strategic partnerships. These factors together strengthen its competitive position against other market participants.

Additionally, the company benefits from the support of its parent company, China Petrochemical Corporation (Sinopec Group), which facilitates access to resources and markets. All of this combined gives SINOPEC Engineering a sustainable competitive advantage in the industry.

Institutional Investor Share: Estimated at around 60% (2025)

Insider Buys/Sells: No significant changes reported (2025)

The institutional investor share in SINOPEC Engineering (Group) Co., Ltd. is estimated to be around 60%. This is typical for large publicly traded companies, as institutional investors such as pension funds, investment funds, and insurance companies often hold a significant stake in such companies.

Regarding insider buys or sells, no significant changes or transactions were reported in 2025. This suggests that the management and other insiders are currently not making significant changes to their involvement in the company. Such information is important as it is often considered an indicator of management's confidence in the company's future development.

Market share of SINOPEC Engineering (Group) Co., Ltd.: Estimated 5-7% (2025)

Main competitors and their market shares:

1. Fluor Corporation: 10-12%
2. Technip Energies: 8-10%
3. Saipem: 7-9%
4. Worley Limited: 6-8%
5. Samsung Engineering: 5-7%
6. SINOPEC Engineering (Group) Co., Ltd.: 5-7%
7. Petrofac: 4-6%
8. JGC Corporation: 3-5%
9. KBR, Inc.: 3-5%
10. Wood Group: 2-4%

SINOPEC Engineering (Group) Co., Ltd. holds a moderate market share in the field of engineering services for the oil and gas industry. The company's market share is supported by its strong presence in China and its affiliation with the SINOPEC Group, one of the largest oil and gas companies globally.

The moat of SINOPEC Engineering mainly consists of its close connection to the SINOPEC Group, providing it with a stable flow of contracts and access to large projects in China. This offers some protection against competition, especially in the domestic market.

Compared to its competitors, companies like Fluor Corporation and Technip Energies may have a stronger moat due to their global reach, technological expertise, and diversified customer base. These factors enable them to operate successfully in various regions and sectors, safeguarding against market fluctuations.

Overall, SINOPEC Engineering has a solid but regionally limited moat, while some of its competitors may be better positioned to benefit from global market opportunities due to their international presence and technological leadership.

Revenue Growth: 8.5% (2024)
Profit Growth: 7.2% (2024)
Backlog: 150 billion CNY (2024)

SINOPEC Engineering (Group) Co., Ltd. recorded solid revenue growth of 8.5% in 2024, driven by strong demand for its engineering and construction services. The 7.2% profit growth indicates that the company is able to efficiently manage its costs while remaining profitable.

The backlog of 150 billion CNY suggests that the company has a robust pipeline of future projects that should secure a stable source of income for the coming years. This is particularly important in the construction and engineering industry, where long-term projects are crucial for financial stability.

Additionally, SINOPEC Engineering benefits from the support of its parent company Sinopec, one of the world's largest oil and gas companies, providing strategic advantages and access to major projects. Given these factors, the stock could be an attractive investment for investors interested in long-term growth, especially in the energy and infrastructure sector.

Dividend Yield: Approx. 6% (estimated for 2024)

SINOPEC Engineering (Group) Co., Ltd. has regularly paid dividends in recent years. The dividend yield was around 6% in 2024, which is considered attractive compared to other companies in the industry.

The reliability of SINOPEC Engineering's dividend payments is supported by the company's stable financial performance and strong market position. Historically, the company has pursued a consistent dividend policy, indicating a solid financial foundation. Analysts expect the company to continue paying dividends in the future, provided there are no significant market changes or economic challenges.