[ET Net News Agency, 20 January 2021] Morgan Stanley raised its target price for
Sinopec (00386) to HK$4.68 from HK$4.45 and maintained its "overweight" rating.
The research house said Sinopec in 2019 produced more than 3mnt hydrogen, taking around
14% market share and making it the second-largest manufacturer in China. Sinopec now
targets to further build up scalable high-purity hydrogen capacity during the 14th Five
Year Plan period, which could make it a leading high-quality hydrogen vendor in China.
While the hydrogen business is unlikely to be profit-making at the initial stage, Morgan
believes the market won't wait for profit-making before they credit the potential value
creation, given investors are forward-looking. (KL)