HALISTER1: Sinopec Shares Drop in Hong Kong; CICC Cuts Target, EPS View

Sinopec Shares Drop in Hong Kong; CICC Cuts Target, EPS View

(Bloomberg) -- China Petroleum & Chemical Corp.’s shares in Hong Kong drop as much as 2.2% as CICC cuts target price, lowers 2017-18 Brent crude forecast.
  • Crude forecast lowered to $52 and $50 per barrel from $54 and $55
  • Target price lowered by 4% to HK$7.40
  • Cuts EPS forecast by 8% to 0.42 yuan for 2017 and by 15% to 0.43 yuan for 2018
  • CICC maintains buy rating
  • Cuts A-share recommendation to hold, keeps PT at 7.09 yuan
  • Sinopec posted results Friday; net income +40% y/y, revenue +33%; in-line with CICC ests.
  • Gas-station price war took toll in 2Q, analysts Bin Guan and Miaozi Wang write in note; govt may eventually adjust policy to help SOE majors tighten domestic supply and recover margins and tax contributions
  • See Also: Sinopec Rides Chemicals to Best Half- Year Profit Since 2014
To contact the reporter on this story: Will Davies in Hong Kong at wdavies13@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Philip Glamann

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
386 HK (China Petroleum & Chemical Corp)

People
Bin Guan (China International Capital Corp Ltd)

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