DJ Sinopec Kantons May Gain From Strong Oil Jetty Business -- Market Talk
0246 GMT - Sinopec Kantons is likely to benefit from strong domestic demand for its oil jetty business in 2H, helped by more oil imports despite a dip in March and April, Daiwa Capital says. The oil and gas-related company's plans to spin-off its YJ Pipeline for a total consideration of CNY 3.4 billion is likely a positive for the company, Daiwa Capital says, adding that this deal is highly value-accretive given Kantons is trading at 0.6X its estimated 2020 PBR. The Japanese investment bank raises its target price to HK$5.00 from HK$4.20 with an unchanged buy rating. Shares are up 1.9% at HK$3.69. (justina.lee@wsj.com)
(END) Dow Jones Newswires
July 22, 2020 22:46 ET (02:46 GMT)
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