Sinopec rises 5% investment bank praises share price underestimate and oil price continues to rise

Echoing the National Development and Reform Commission in the month of the second increase in the price of oil products favorable; The main products downstream sales of Sinopec (00386-HK) has risen significantly this morning, the share price of half a day to close 4.72% to 5.99 Hong Kong dollars, deal 295 million shares. The bank has commented that the NDRC has raised its oil prices　　Reflects only 7.1 dollars per barrel of crude oil cost gains, the 10.5-dollar increase in oil prices over the same period is not enough; with the oil price standing at $70 and looking at 90-100 dollars, the NDRC is likely to raise its refined oil prices again in the next two months; It is estimated that the price rise will bring about 0.67 yuan per share to Sinopec. Guoco Capital issued a report that the Sinopec rating from holding to buy, to give the target price of HK $6.4, equivalent to 10 fiscal year 10 times times forecast P/E. While the news of China's rise in oil prices is positive, it remains cautious about the long-term prospects for refining operations, as oil prices are expected to rise. It is thought that Sinopec's recent share price will be boosted by its valuation lower than PetroChina (00857-HK) and CNOOC (00883-HK).