Bank of China International: Raised the target price of China Petroleum & Chemical (00386) to HK$5, but profits are expected to fall in the fourth quarter

The Zhitong Finance App learned that Bank of China International released a research report saying that the net profit of China Petroleum & Chemical (00386) increased 54% quarterly to 13.6 billion yuan, 21% higher than the bank's forecast, mainly due to the sharp rise in oil prices, Sinopec's profit for the fourth quarter fell 7% quarterly, maintaining a “holding” rating. The target price rose from HK$4.92 to HK$5.

The report mentioned that the recent deterioration of the geopolitical situation in the Middle East has once again pushed up freight and insurance costs for imported crude oil by sea. Since September, the Chinese government has raised domestic gasoline and diesel prices by a margin below the theoretical level.