Jin Rong Jie·2025-08-01 07:05Core Viewpoint - Sinopec (00386) experienced a significant decline in stock price, dropping over 5% following the release of its profit forecast for the first half of 2025, indicating a substantial year-on-year decrease in net profit due to various market pressures [1]. Financial Performance - Sinopec expects to achieve a net profit of 20.1 billion to 21.6 billion RMB for the first half of 2025, representing a year-on-year decline of 39.5% to 43.7% [1]. - For the second quarter, the company anticipates a net profit attributable to shareholders of 6.8 billion to 8.3 billion RMB, reflecting a year-on-year decrease of 52.1% to 60.7% and a quarter-on-quarter decline of 37.2% to 48.5% [1]. Market Influences - The decline in profits is primarily attributed to a sharp drop in international oil prices, ongoing competition in the oil and petrochemical markets, and low margins in the chemical market [1]. - Everbright Securities has revised its profit forecasts for Sinopec for 2025 to 2027, expecting net profits of 45.3 billion (down 15.4%), 55.5 billion (down 3.1%), and 66.2 billion (down 7.6%) RMB, respectively [1]. Long-term Outlook - Despite the current challenges, the company is committed to long-term strategies, focusing on the development of new energy and new materials businesses [1]. - As the overall chemical market improves and new production capacities come online, the company's performance is expected to strengthen, leading to a positive long-term growth outlook [1].