Citigroup: Slightly lowers target price of Sinopec (00386.HK) to 5.2 Hong Kong dollars, continues to prefer PetroChina (00857.HK) as the top choice.

According to the Zhitong Finance APP, Citigroup has released a research report stating that they have updated their profit forecast and target price for China Petroleum & Chemical Corporation (00386.HK), reflecting adjusted assumptions. They have lowered their earnings per share forecast for 2025 by 15%, and revised their target price from 5.3 Hong Kong dollars to 5.2 Hong Kong dollars. The bank predicts that Sinopec's net profit in the second quarter of 2025 will decrease by over 40% to approximately 8 billion yuan, mainly due to losses in the refining business and market inventory, as well as weak performance in exploration and production. However, with stabilizing crude oil prices and a slight improvement in core refining margins, they anticipate a rebound in performance in the third quarter.