Core Viewpoint - UBS has downgraded the earnings forecast for Shanghai Petrochemical Company (00338) to a loss of 385 million RMB for the year, while also reducing the earnings per share estimates for 2026 to 2027 by 7% to 10% [1] Company Performance - In the first nine months of the year, Shanghai Petrochemical's revenue decreased by 11% year-on-year, resulting in a net loss of 432 million RMB [1] - The company recorded a net profit of 31 million RMB in the third quarter, marking a return to profitability compared to the previous quarter, attributed to a reduction in asset impairment losses [1] Market Outlook - Despite the recent quarterly profit, the company's performance has not met UBS's expectations due to weaker-than-expected sales of refined oil products and a still weak fundamental outlook for olefins [1] - UBS believes that the long-term fundamentals of the refining and chemical industry may improve with the advancement of "anti-involution" initiatives [1] Target Price Adjustment - UBS has adjusted the target price for Shanghai Petrochemical from 1.89 HKD to 1.87 HKD while maintaining a "Buy" rating [1]
瑞银：上海石油化工股份(00338)第三季亏转盈 惟未达预期 降目标价至1.87港元