HK Stock Market Move | Sinopec (00386) has risen over 4% after its earnings report, with refining margins significantly recovering and net profit in the first half of the year increasing nearly 20% year-on-year.

China Petroleum & Chemical Corporation (00386) surged over 4% after its earnings report. As of the time of writing, it has increased by 4.09%, priced at HK$4.585, with a trading volume of HK$232 million. In terms of news, China Petroleum & Chemical Corporation released its mid-year performance report for 2026, achieving a revenue of CNY 1,436.6 billion in the first half, a year-on-year increase of 2%; the net profit attributable to shareholders of the parent company was CNY 25.6 billion, up 19.3% year-on-year. At the same time, the company is committed to returning value to shareholders, with the board deciding to distribute an interim dividend this time of CNY 0.105 per share, resulting in a cash payout ratio of 49.5%. Huatai released a research report stating that the company's net profit attributable to the parent in Q2 2026 exceeded our previous expectations by CNY 3 billion, mainly due to the rise in international oil prices driving inventory gains, as well as the chemical segment turning profitable. Considering the company's significant integrated advantages in upstream and downstream operations, coupled with ongoing advancements in the new materials sector and transformation of non-oil businesses, we maintain a "Buy" rating for A/H shares. The institution notably pointed out that during this period, refining gross profit increased by CNY 139 per ton year-on-year to CNY 453 per ton.