[ET Net News Agency, 8 March 2018] Goldman Sachs believes shares in Sinopec (00386) -
China's petrochemical champion - are cheap, trading on FCF-yield of 11.3%/11.7% and
EV/DACF of 4.1x/3.8X (2018/19) with all divisions profitable in 2018.
The research house sees Sinopec entering a period of greater earnings stability, healthy
cashflow and stronger dividends, on Goldmans's oil forecasts, and given China's steps
toward market-based fuel pricing.
Goldman believes Sinopec's full-year result (due 25th March) could be a step toward
re-rating on stronger cashflow, increased dividend & possible new strategic insights (eg.
new Chairman vision). It reiterated its "buy" rating and HK$8.2 target price after
removing its "rating suspended" designation from Sinopec. (KL)