Analysts at JPMorgan have issued a research report forecasting a gradual stabilization in the gross margin for SINOPEC SSC (01033), with a modest recovery trend anticipated next year, supported by ongoing improvements in cost control. The firm has concurrently reduced its H-share price target from HK$1.00 to HK$0.83 while reaffirming an "Overweight" rating.

The report expects SINOPEC SSC to sustain steady revenue growth and see its gross margins stabilize, with moderate profit contributions expected from overseas projects. It notes that entering the second and third quarters of 2026, overall workload is expected to face downward pressure, primarily due to a slight deceleration in upstream development activities, coupled with rising material and logistics costs that will further squeeze short-term profitability.

However, the analysts believe that the emphasis on energy security by China's state-owned oil majors and the expansion into new overseas orders will provide support for both workload and profitability. The forecast is for SINOPEC SSC's gross margin to stabilize in the 2026 fiscal year and experience a slight rebound in the 2027 fiscal year.