Zhi Tong Cai Jing·2025-08-29 06:44Core Viewpoint - DBS reported that China Petroleum & Chemical Corporation (00857) slightly exceeded expectations in Q2 2025, with a net profit decrease of 13% year-on-year to 37 billion RMB, primarily due to a 20% drop in oil prices [1] Financial Performance - The net profit for Q2 2025 was 37 billion RMB, reflecting a 13% year-on-year decline [1] - Oil prices have stabilized in the range of 65-70 USD per barrel, which may alleviate concerns regarding downstream supply surplus [1] Dividend Information - China Petroleum's interim dividend is set at 0.22 RMB per share, which is better than expected [1] - The full-year dividend is anticipated to be 0.44 RMB per share, resulting in a dividend yield of 6.5% [1] Investment Rating - DBS maintains a "Buy" rating for the stock, with the target price raised from 7.3 HKD to 8 HKD [1] - The target price adjustment is based on an updated valuation model extending to the fiscal year 2026, along with a slight increase in downstream business valuation [1]