[ET Net News Agency, 3 September 2018] Goldman Sachs lowered its target price for
Sinopec Kantons (00934) by 5% to HK$4.95, and maintained its "buy" rating.
The research house said Sinopec Kantons' 1H NPAT of HK$756mn beat was driven by a better
oil jetties business (stronger volume growth), pipeline business (margin) and currency
(Rmb appreciated by 8% yoy in 1H).
Despite a material cut in pipeline tariffs yoy after the 8% regulated return policy was
imposed, Kantons is still able to deliver profit growth.
After incorporating 1H results, Goldman upgraded its 2018-20 EPS forecasts by
17%/13%/14% to HK$0.53/0.54/0.56. (KL)