Shanghai Petrochemical Company drops 3% Goldman Sachs list

Shanghai Petrochemical H-shares fell back this morning, with shares falling 2.9% to HK $2.68 in half a half-day, trading 25.44 million shares.　　Goldman Sachs issued a report saying reduce the stock rating from Buy to sell, and include the assured selling list; the target price has been lowered from HK $2.5 to HK $2.2, which is 6.2 times times higher than the value of the business in fiscal year 2010 and the profit before interest, tax, depreciation and amortization, at a discount of 18%. Goldman Sachs pointed out that most of Shanghai petrochemical positive catalysts have been exhausted, including the increase in domestic oil prices, the first quarter of 2009 fiscal year to improve earnings and the petrochemical industry revitalization planning details.　　The company will be one of the few operators in the industry that fell last year in the 2010 fiscal year, mainly because of chemical business. Goldman, in turn, advises investors to consider carrying out 00386-HK, the Shanghai petrochemical industry, as the upstream business of Sinopec is expected to recover in 2010, with more attractive valuations and a risk aversion to refining and chemical operations.