Credit Suisse cut target price for Sinopec to HK$5.5, keeping Outperform rating
STOCKS
Credit Suisse cut target price for Sinopec to HK$5.5, keeping Outperform rating
STOCKS

Credit Suisse cut target price for Sinopec to HK$5.5, keeping Outperform rating

 

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Sinopec’s second-quarter net profit declined by 27% year over year to 15.4 billion yuan, a weak performance that took away the momentum from the company’s promising start in the first quarter following the reopening of China, said Credit Suisse in a note

Net profit for the first half of the year was 36.1 billion yuan, which met 43% of Credit Suisse’s full-year forecast. The interim dividend per share of 0.145 yuan was down 10% from a year earlier, representing a payout ratio of 48%.

Going into the second half of the year, the low base last year would provide better comparisons, with its reduced EPS forecast on Sinopec for this year still implying 15% growth, the broker said.

The broker reduced its target price from HK$6.2 to HK$5.5 and maintained its Outperform rating.