Sinopec Shanghai Petrochemicals Co., Ltd. (SPC) reported a decline in its 1Q 09 revenues led by a decline in its average selling prices. However, bottom-line returned to the black given a decline in the company’s input costs. Going forward, we expect demand for the company’s petrochemical products to remain weak in FY 2009, attributable to the ongoing recessionary phase. However, lower expected levels of crude oil prices in FY 2009…

Sinopec Shanghai Petrochemicals Co., Ltd. (SPC) reported modest increase in its FY 2008 revenues. However, high crude prices impacted the company’s bottom-line during the year. Going forward, with our expectation of the current recessionary trend to continue in FY 2009, we expect the demand for the company’s petrochemical products to remain low over our 6-12 month investment horizon. However, lower oil prices during the year are expected to improve operating…

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On 24 December 2008, Sinopec Shanghai Petrochemicals Co., Ltd. (SPC) issued a profit warning for its 2H 08 results. The company expects to suffer losses as bleak economic conditions cut demand for the company’s refined oil products. The situation is expected to be further worsened by the absence of government subsidy. Although we expect the company’s operating margin to improve in FY 2009 given declining oil prices, the current price level…