My Investing Muse

China Petroleum & Chemical Corporation (0386.HK) is one of the biggest petrochemical players in China, a (largely) state-owned business. For ease, let us use the abbreviation CPCC. With a Dividend yield of 8.04% and an ex-dividend date of 12 June 2023, I plan to load up more of this company’s shares by the end of the week. CPCC summary of performance Here is a summary of the financial data of China Petroleum 00386.HK for the last 5 years: As you can see, the company's revenue and net income have been growing steadily over the past 5 years. However, the company's FCF has been declining slightly over the past few years. This is likely due to the company's increasing investment in new projects. The company's EPS has also been growing steadily over the past 5 years. This is due to the company's increasing revenue and net income. The company's PE ratio is currently around 12.5, which is in line with the average PE ratio for the oil and gas industry. As you can se...

  Below is a summary of the earnings of NIO compiled: Observations: There is constant growth in the annual revenue. The gross margins are between -15.3% (loss) to 11.5%. However, the company is not making money with EPS in negative since 2016. For EPS, it would be encouraging to see the narrowing of losses over time. However, it is not so for NIO. The latest return on assets, return on equity and return on invested capital are all negative (2022). Income Statement Observations: Shares dilution in last few years Growing revenue is good but the net income has never broken even since 2016 (despite the government grants). With growing revenue, there is also a growing net loss. This is NOT trending in the right direction. EPS is trending in the wrong direction - worsening since 2020. Balance Sheet Observations of Balance Sheet: Total assets are growing but total liabilities are also growing too. There is a dip in shareholders’ equity from 2021 to 2022. Retained earnings have hit a (loss...