Sinopec's Slower Downstream Recovery May Weigh on Earnings -- Market Talk
Dow Jones
Oct 31
0534 GMT - Morningstar lowers 2025-2029 earnings forecasts for Sinopec by an average of 8% to reflect a slower rebound in downstream operations, particularly in chemicals. Management remains cautious about the chemicals segment and doesn't anticipate a near-term sector recovery, says director Chokwai Lee in a note. Lee expects Sinopec's operating cash flow to remain unaffected and a dividend yield of over 5% and ongoing share buybacks to support the stock. Lee also sees room for reduced capital expenditure ahead. Morningstar lowers Sinopec's H share fair value estimate to HK$5.50 from HK$5.80. The H shares last at HK$4.16. (jason.chau@wsj.com)
(END) Dow Jones Newswires
October 31, 2025 01:34 ET (05:34 GMT)
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