Lyon: China Petroleum and Chemical Corporation (00386.HK) has a longer transition period than expected, and the target price is slightly reduced to HK$4.6.

According to the Zhitong Finance app, Lyon released a research report stating that China Petrochemical Corporation (00386.HK) saw a 25% year-on-year decrease in profits in the first quarter of the 2025 fiscal year, with first quarter sales data showing that the downstream operating environment in China is extremely challenging. Lyon stated that it had previously pointed out that Sinopec is currently in a period of transformation, but this stage seems to be longer than the bank's original expectation. Therefore, the bank has revised its target price for Sinopec's H shares from HK$4.7 to HK$4.6, giving it an "outperform the market" rating. Lyon's preference order for the "Three Oil Giants" is China Petroleum & Chemical Corporation (00857.HK), CNOOC Limited (00883), and then Sinopec.