Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
00386 SINOPEC CORP
RTNominal up4.800 +0.030 (+0.629%)
Others

19/01/2018 17:23

[I-bank focus]Deutsche Bank lifts Sinopec (00386) to HK$7.86

[ET Net News Agency, 19 January 2018] Deutsche Bank lifted its target price for Sinopec
(00386) to HK$7.86 from HK$7.44, and maintained its "buy" rating.
The research house said US$60/bbl Brent is the "goldilocks" price for Sinopec, as its
upstream oil breakeven cost was at US$62/bbl in 2017 and the plan is to lower this to
US$55/bbl by 2020.
In 2017, Sinopec will likely lose RMB30bn from its upstream business, but those losses
will likely be significantly less in 2018 alongside the recovery in the oil price, DB
noted.
On the other hand, Sinopec's refining GRM spreads should continue to stay healthy at
US$9-10/bbl supported by GBV to GBVI upgrades in 2018. Sinopec's balance sheet is also
best-in-class, with the company likely reaching a net cash position by end-2018.
Given Sinopec's strong cash flow position with a 12-14% yield, DB believes excess cash
will continue to be returned to shareholders through higher dividend payouts, reaching
65-70%, or a 6-7% dividend yield.
Further, DB said that Sinopec's planned marketing spin-off could unlock further value.
(KL)

Remark: Real time quote last updated: 26/04/2024 18:00
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2024 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.