Category: Money tips Release Date: 2006-05-02
Shanghai Petrochemical (600688.SH) and Yizheng Chemical Fiber (600871.SH) is undoubtedly the integration of the petrochemical assets of more value, but whether in cash buy-back or convertible, is the lack of early discussion of the premise. This is not a good performance and two "A + H" company, A shares have been driven by the integration is expected to greatly exceed the H shares. If on top of current prices for a certain premium to repurchase, it is clear that Sinopec would not be cost-effective for the sale and purchase. Have been media reports that Sinopec will take the strategy is a "such as" word, that is, wait for the market heat at low tide, the two companies, after a reasonable valuation of return, and then start the integration. (Send
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But even in itself willing to wait Sinopec, Shanghai Petrochemical and Yizheng Chemical Fiber reform issue of shares does not allow such a delayed indefinitely. Because it can not be quickly completed the integration of Sinopec subsidiaries must face two problems share reform. But the shareholders of Sinopec's H shares will not agree with 2 subsidiary companies to the flow of A shareholders pay for shares of reform on prices, Sinopec will not be "in stock reform in the first Major Holders, followed by the integration of the stock by buying back." The paradox of the two companies "valuation of return", Sinopec can be a temporary low-cost, no solution before the start of privatization, but also depends on whether regulators allow the companies a temporary change to avoid stock.
"Uncertainty is not to say there is no chance that if the Shanghai Petrochemical and Yizheng Chemical Fiber there was a substantial decrease in future, or may consider intervention." Shenzhen, Mr Yam said a senior investors.
Shijiazhuang Refining-Chemical (000783.SZ), Titan Oil (000554.SZ), and Wuhan Petroleum (000668.SZ) 3 Zhi equity smaller companies because the fundamentals situation far cry from the Shanghai Petrochemical and Yizheng Chemical Fiber, the market generally felt that the Petrochemical companies in the future will be a net three-shell transfer. But the problem is that the current shell resource is not scarce on the market, the lack of is really good backdoor those of assets. "Shell to whom the transfer is very important. Analogy that innovation securities firms and backdoor is certainly a good thing, but if the backdoor into the assets of those who did not have to be attractive, then the share price may even fall." Mr Yam said,
"This matter is still too complex, and retail investors access to information is very limited, so will be good for a little more cautious." Mr Yam concluded.
