DJ Sinopec Kantons Oil-Terminal Throughput Likely to Have Strong 2H Recovery -- Market Talk
0741 GMT - Sinopec Kantons's oil-terminal throughput could have a strong recovery in 2H as more very-large-crude-carriers need to offload floating oil storage, Daiwa Capital says, as it raises its target price to HK$4.20 from HK$3.70 while saying its valuation is "unjustifiably low." Demand for Kantons's oil berths dived in March and April due to the pandemic but the Chinese company expects July's throughput to further improve on month, Daiwa says, adding China's strong refinery production supports high oil imports. Besides, Kantons's storage facility in Fujairah, UAE, stands to benefit from an oil-supply glut, where full occupancy has pushed rents higher. Daiwa raises its EPS forecast for 2020-2021 by 1.3% and keeps a buy rating. Shares fall 1.1% to HK$3.46. (clarence.leong@wsj.com)
(END) Dow Jones Newswires
July 07, 2020 03:41 ET (07:41 GMT)
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