GS 高盛：中国每日报告 06.26

China Daily Insights 06.26 9页

Today’s focus
China Petroleum and Chemical (H) (0386.HK): Sudden resignation of Chairman raises risk profile; affirm Sell
Yanlord Land (YNLG.SI): New acquisition in Suzhou, more to come; reiterate Buy rating
AAC Acoustic (2018.HK): AAC to benefit from Nokia's potential component shortage
Headline news
M&As face security scrutiny (People’s Daily)
More effort needed to prevent fixed asset investment bounce back (People’s Daily)
Nation targets 3 areas to cut energy use (China Daily)
BOC: gov't audit findings not to affect financial results (Xinhua)
China Petroleum and Chemical (H) (0386.HK): Sudden resignation of Chairman raises risk profile; affirm Sell, Kelvin Koh, CFA
• What's changed: Sinopec (0386.HK, HK$8.79, Sell) announced last Friday, June 22, that its Chairman, Chen Tonghai, has resigned for personal reasons. This news is very sudden; there was no prior indication that Mr Chen was planning to leave the company and his official retirement is 2 years away. Unconfirmed local media reports (eg SCMP) have linked Mr Chen’s departure to the govt’s corruption probe into Yu Zhifei, who was last month charged for alleged involvement in a huge graft case involving the misuse of Shanghai City’s pension funds.
• Implications: We believe the uncertainty over Mr Chen’s sudden resignation could have a negative