Sinopec Xiao-sheng DBS appeals to pay attention to the rising power

Confirming that the parent company has invested $8 billion trillion in the addax of Sinopec, the H shares rose 0.71% to HK $5.65 a half-day in the morning, trading 84.51 million shares, running a crude oil stock, or being affected by the return of New York oil to 70 dollars.　　DBS issued a report saying it maintained the stock's buying rating on the grounds of a rebound in profits, attractive assets and valuations, and a slight increase in the target price from HK $7.69 to HK $7.71, the equivalent of 1.6 times times the market level in the cycle and a premium of 36% per cent.　　DBS indicates that Sinopec is expected to start a replenishment, and its refining and chemical business margins in the second quarter of 2009 are expected to be higher than in the first quarter, with a steady rise in crude oil prices having a positive impact on product prices and profitability. DBS said that while Sinopec's refining margin had a risk of falling in the second half of 2009, the worst-case scenario should have passed because of a significant loss in refining operations in 2006-2008.