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Fu Chengyu: Spin Off Is More Beneficial To Reflect The Value Of Different Business Sectors.

2011/5/16 15:26:00 45

Value Of Spin Off Business Segment

On May 13th, Fu Chengyu, chairman of Sinopec Group Group, answered the investor's questions at the Sinopec (600028.SH/00386.HK/NYSE:SNP) 2010 shareholders' meeting.

list

More conducive to fully reflect the value of the company.


He said that splitting the listing could make a difference.

business

The value of the plate is fully reflected.

Unlike other oil companies, each of China's three major oil companies covers the entire industry from upstream to downstream. If the market is listed as a whole, the value of capital market is only the value of the industry.

It is not good for the technology service companies to go out to explore the market and seek greater development.

At the same time, it is not conducive to maintaining and increasing the value of state-owned assets, nor to repay investors.


He said that the impact of national policies, Sinopec currently refining sector serious losses, and this serious impact.

Investment

The company's share price performance is depressed.


Fu Chengyu said that during his job in CNOOC, he had adhered to different opinions with other competent departments of the company through exploring the capital market, and proved that CNOOC has achieved good results after its spin off.


Fu Chengyu's response immediately triggered speculation on the separation of Sinopec by investors, but Sinopec Group will change its management level in 2012.

Fu Chengyu said that enterprise management is a long-term behavior and will not be changed due to the change of management level.


Another senior leader of Sinopec Group, when exchanging with investors, said that the valuation of CNOOC, which has already been split, is higher than that of Sinopec Group. If split up, the company's retail business of gas stations can be revalued according to the average price earnings ratio of the retail industry 40 times.


Fu Chengyu was successfully elected director of Sinopec's board at this meeting.


In May 13th, Sinopec Group's S Petrochemical (600688.SH) and S (600871.SH) shares rose to the limit in the afternoon.


 
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