Bank of America Securities lowers its target price for Sinopec to HK$71.8, expecting only a slight improvement in gross profit margin in the second half of the year.

Bank of America Securities has released a research report stating that the gross profit margin of Shenzhou International in the first half of the year did not perform as well as expected, leading to a downward adjustment of 2% and 3% in earnings per share forecast for the next two years, with the target price lowered from HK$73 to HK$71.8. However, the bank also pointed out that Shenzhou's main customers saw sales growth in the first half of the year significantly surpassing global industry performance, and they believe that the group will increase market share by relying on an excellent supply chain, maintaining a buy rating. Bank of America Securities believes that Shenzhou's strong revenue performance in the first half of the year is partly due to the favorable early order situation, and they expect Nike's future recovery situation to be a key factor influencing Shenzhou's stock performance. It is predicted that the gross profit margin in the second half of the year will only slightly improve compared to the first half, remaining below the levels of 28.1% in 2024 and over 30% before the pandemic.