[ET Net News Agency, 30 October 2020] Credit Suisse cut its target price for Sinopec
(00386) to HK$3.4 from HK$3.7 and maintained its "neutral" rating.
The research house said Sinopec's 3Q results were better than Credit Suisse's estimates
even excluding the one-off gain from pipeline spin-off. It is the first profit-making
quarter in 2020, thanks to sustained domestic demand recovery and higher oil prices QoQ.
While Credit Suisse is encouraged by Sinopec's sequential recovery in 3Q, it noted the
challenging downstream environment and that the boosted-up 3Q headline earnings leave room
for potential kitchen-sinking in 4Q. (KL)