UOB: Reduces target price of China Petroleum & Chemical Corporation (00386.HK) to 7.1 Hong Kong dollars, expects refining and chemical business to come under pressure in the second quarter.

According to the WiseMoney app, UBS released a research report stating that China Petroleum & Chemical Corporation (00386.HK) saw a 3.9% year-on-year decrease in first-quarter revenue to 706.7 billion yuan (RMB, same below); net profit increased by 28% year-on-year to 17 billion yuan, in line with the bank's expectations, mainly benefited from recording approximately 8.6 billion yuan in crude oil inventory gains, compared to inventory losses of 240 million yuan in the same period last year. The "buy" rating is maintained, and the target price is lowered from 7.8 Hong Kong dollars to 7.1 Hong Kong dollars.