UBS has released a research report indicating that SINOPEC CORP (00386) reported a 3.9% year-on-year decline in first-quarter revenue to RMB 7,067 billion. Net profit increased by 28% year-on-year to RMB 17 billion, aligning with the bank's expectations, primarily benefiting from approximately RMB 8.6 billion in crude oil inventory gains, compared to an inventory loss of RMB 240 million in the same period last year. The bank maintains a "Buy" rating but has reduced the target price from HK$7.80 to HK$7.10. Looking ahead to the second quarter, due to rising crude oil costs, the bank expects significant pressure on the refining and chemical segments. Based on concerns over future refining and chemical operations, UBS has cut its 2026 profit forecast by 18%.