[ET Net News Agency, 10 October 2018] Citi Research cut its target price for Sinopec
Shanghai Petrochemical (00338) to HK$3.9 from HK$5.7, and downgraded its rating to "sell"
from "buy".
The research house said the negative impact from high crude oil/naphtha prices could be
fully felt in 4Q in both the chemicals and refining segments. Citi expects 2019 net profit
to drop 30% on the lack of refinery inventory gains and mono ethylene glycol/paraxylene
oversupplies.
It raised its FY2018 EPS forecast by 10% (inventory gain), but lowered its FY2019/20 EPS
estimates by 20%/14% respectively. (KL)