Xin Lang Cai Jing·2025-10-24 09:06Core Viewpoint - Goldman Sachs has initiated a "Buy" rating for China Petroleum & Chemical Corporation (00857), setting a target price of HKD 8.6 for H-shares and RMB 11.8 for A-shares [1] Group 1: Company Analysis - Liaohe Petrochemical's capacity accounts for 4% of China Petroleum's refining capacity, and sanctions may lead to the cancellation of crude oil supply transactions by suppliers and shipping companies, potentially causing production disruptions [1] - The company is expected to pivot towards non-Western supply chains for crude oil procurement and increase imports from Russia [1] - China Petroleum's Hong Kong operations serve as a trading window for importing Russian crude oil, with sanctions possibly complicating transactions that rely on the EU, financial intermediaries, insurance companies, or ship management firms [1] Group 2: Market Impact - The impact of sanctions on the volume of Russian crude oil imports remains uncertain, but adjustments in crude oil procurement could mitigate production disruption effects [1] - Oil prices will continue to be a primary factor affecting the group, with Goldman Sachs estimating that a USD 10 per barrel change in Brent crude oil prices will result in a corresponding change of 1 billion in EBITDA for China Petroleum [1]