JPMorgan downgrades Rongsheng Petrochemical stock to Neutral after 30% rally

Published 25/08/2025, 06:06
JPMorgan downgrades Rongsheng Petrochemical stock to Neutral after 30% rally

Investing.com - JPMorgan has downgraded Rongsheng Petrochemical Co Ltd (SZ:002493) from Overweight to Neutral, maintaining a price target of RMB10.00 per share.

The downgrade follows a 30% rally in Rongsheng’s share price from its April low, which has now reached JPMorgan’s target price of RMB10 per share.

JPMorgan has trimmed its earnings per share estimates for Rongsheng by 17% for fiscal year 2025 and 44% for fiscal year 2026 following what it described as "soft" second-quarter results.

The firm’s fiscal year 2026 EPS estimate now sits 43% below the Bloomberg consensus, indicating significantly more conservative projections than the broader market.

JPMorgan noted that Rongsheng’s second-quarter net profit of RMB14 million significantly lagged behind competitor Hengli’s RMB1 billion during the same period, despite both companies being similar in size and Hengli conducting major scheduled maintenance in the quarter.

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