[ET Net News Agency, 24 July 2019] Citi Research lowered its target price for Sinopec
Shanghai Petrochemical (00338) to HK$4.3 from HK$4.5 and maintained its "buy" rating.
The research house estimated 1H net profit of Rmb1.2bn (-66%, or accounting for 30% of
full-year consensus) and expects a profit warning ahead. Citi sees limited QoQ recovery in
2Q results due to further downside in chems (PE/MEG/PX) and limited recovery in refining
(diesel).
Citi cut FY2019/20/21 EPS forecasts by 20%/11%/21% on lower refining and revised chem
spreads. (KL)