A research report from Bank of America Securities indicated that SINOPEC CORP (00386) posted a net profit of RMB 32.5 billion for 2025, representing a 34% year-on-year decline. This implies a fourth-quarter net profit of RMB 411 million, down 89% compared to the same period last year and 95% lower than the previous quarter, aligning with market expectations. The weak performance in the fourth quarter was primarily due to inventory losses and increased year-end impairments. The firm maintained its "Buy" rating on SINOPEC CORP, with a target price of HK$6 for its H-shares and RMB 7.6 for its A-shares (600028.SH).

Management guidance for 2026 capital expenditure is set at RMB 131.6 billion, with upstream, refining, marketing, and chemical segments accounting for 55%, 13%, 7%, and 21%, respectively. Upstream capital expenditure is expected to increase by 2% year-on-year, while downstream spending is projected to decrease by 21% to 35%. Additionally, depending on market conditions, management has reserved an extra RMB 17 billion for flexible capital expenditure adjustments.