Core Viewpoint - UBS reported that Shanghai Petrochemical Company experienced an 11% year-on-year decline in revenue for the first nine months of the year, resulting in a net loss of 432 million yuan [1]. Financial Performance - The company recorded a net profit of 31 million yuan in the third quarter, marking a return to profitability on a quarterly basis due to a gradual reduction in asset impairment losses [1]. - Despite the quarterly profit, the overall performance did not meet UBS's expectations due to weaker-than-expected refined oil sales and a still-weak fundamental outlook for olefins [1]. Future Outlook - UBS believes that the medium to long-term fundamentals of the refining and chemical industry may improve as the trend of reducing internal competition progresses [1]. - Based on the third-quarter performance and the outlook for key products, UBS has revised its forecast for Shanghai Petrochemical's annual loss to 385 million yuan and lowered the earnings per share estimates for 2026 to 2027 by 7% to 10% [1]. - The target price has been adjusted from 1.89 HKD to 1.87 HKD, while maintaining a "Buy" rating [1].
大行评级丨瑞银：上石化第三季转亏为盈但不及预期 微降目标价至1.87港元