SHANGHAI PECHEM (00338) declined nearly 3%, trading at HK$1.32 with a turnover of HK$9.83 million by press time. The company reported a 10.77% year-on-year decrease in revenue to RMB58.89 billion for the first three quarters of 2025, alongside a net loss attributable to shareholders of RMB432 million, or a basic loss per share of RMB0.041.

The performance shift from profit to loss was attributed to declining petroleum product sales. UBS noted SHANGHAI PECHEM’s 11% YoY revenue contraction and RMB432 million net loss for the nine-month period. While Q3 saw a sequential rebound with a net profit of RMB31 million due to reduced asset impairment losses, overall results missed expectations. Weak olefins fundamentals and underwhelming fuel sales contributed to the underperformance.

UBS suggested potential medium-to-long-term improvements in refining and chemical sectors amid ongoing industry restructuring efforts.