UBS: Shanghai Petrochemical Company turned a loss into a profit in the third quarter, but it did not meet expectations, lowering the target price to HKD 1.87
UBS released a research report stating that based on the third-quarter performance of SHANGHAI PECHEM and the outlook for its main products, it has lowered the forecast for SHANGHAI PECHEM's loss this year to RMB 385 million, and reduced the earnings per share estimates for 2026 to 2027 by 7% to 10%. The corresponding target price has been lowered from HKD 1.89 to HKD 1.87, maintaining a "Buy" rating. SHANGHAI PECHEM's revenue in the first nine months of this year decreased by 11% year-on-year, recording a net loss of RMB 432 million. Benefiting from a gradual reduction in asset impairment losses, the company recorded a net profit of RMB 31 million in the third quarter, turning from a loss to a profit quarter-on-quarter. However, due to weaker-than-expected sales of refined oil products and the continued weak fundamentals of olefins, the company's performance still did not meet the bank's expectations. The bank believes that as "anti-involution" progresses, the medium to long-term fundamentals of the refining and chemical industry may improve
According to the Zhitong Finance APP, UBS has released a research report stating that based on the third-quarter performance of Shanghai Petrochemical Company Limited (00338) and the outlook for its main products, it has lowered its forecast for the company this year to a loss of RMB 385 million, and reduced the earnings per share estimates for 2026 to 2027 by 7% to 10%. The corresponding target price has been lowered from HKD 1.89 to HKD 1.87, maintaining a "Buy" rating.
In the first nine months of this year, Shanghai Petrochemical Company Limited's revenue decreased by 11% year-on-year, recording a net loss of RMB 432 million. Benefiting from a gradual reduction in asset impairment losses, the company recorded a net profit of RMB 31 million in the third quarter, turning from a loss to a profit quarter-on-quarter. However, due to weaker-than-expected sales of refined oil products and the still weak fundamentals of olefins, the company's performance has not met the bank's expectations. The bank believes that as the "anti-involution" progresses, the medium to long-term fundamentals of the refining and chemical industry may improve
