According to UBS's report, based on the third-quarter performance of SHANGHAI PECHEM (00338) and the outlook for its main products, the firm has revised its forecast for the company to a loss of RMB 385 million for this year. It has also lowered its earnings per share estimates for 2026 to 2027 by 7% to 10%, resulting in a target price cut from HKD 1.89 to HKD 1.87, while maintaining a "Buy" rating. In the first nine months of this year, SHANGHAI PECHEM reported an 11% year-on-year revenue decrease and a net loss of RMB 432 million. Thanks to the gradual reduction in impairment losses, the company recorded a net profit of RMB 31 million in Q3, marking a quarterly turnaround. However, due to weaker-than-expected finished oil sales and ongoing weak fundamentals in olefins, the company's performance still did not meet the bank's expectations. UBS believes that with the advancement of "de-involution," the long-term fundamentals of the refining and chemical industries may see improvement.