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SINOPEC SHANGHAI PETROCHEMICAL(0338.HK):Q315 BEATS EXPECTATIONS

瑞银证券有限责任公司2015-10-23
Q: How did the results compare vs expectations?
A: SPC reported Q315 NP of Rmb514m, above UBSe of Rmb300m. 9M2015 NP ofRmb2,246m achieved 87% and 81% of UBS and consensus 2015E.
Q: What were the most noteworthy areas in the results?
A: Balance sheet de-gearing continues. Net D/E ratio decreased from 33% (2014) to14% (6M15) and further to 11% (9M15). This is ahead of UBSe.
Q: Has the company's outlook/guidance changed?
A: No guidance was provided.
Q: How would we expect investors to react?
A: We expect SPC share performance to be strong post the strong Q315 and apotentially stronger Q415, as long as oil prices don't fall unexpectedly.

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