UBS 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 an inventory gain of approximately RMB 8.6 billion on crude oil, compared to an inventory loss of RMB 240 million in the same period last year. The bank maintained a "Buy" rating but lowered the target price from HK$7.8 to HK$7.1.

Looking ahead to the second quarter, the bank anticipates significant pressure on refining and chemical operations due to rising crude oil costs. Due to concerns over the future performance of these segments, UBS has reduced its 2026 profit forecast by 18%.