[ET Net News Agency, 1 November 2019] Citi Research cut its target price for Sinopec
(00386) to HK$6.6 from HK$6.8 and maintained its "buy" rating.
The research house said Sinopec's 3Q net profit of Rmb12bn was below Citi's expectation
of Rmb14bn. While the marketing segment improved and chemical EBIT stabilized, the qoq
decline was mainly due to a weak refining margin on higher crude OSP (Official Selling
Price) and falling E&P on lower oil prices.
Citi trimmed its FY2019 earning by 9% as it lowered its Brent oil forecast from US$70 to
US$65. (KL)