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HSBC downgrades Sinopec SEG (02386) to "hold"
HSBC Global Research maintained its target price
for Sinopec Engineering (SEG)(02386) unchanged at HK$7.5, but downgraded its rating to 
"hold" from "buy".
  The research house said SEG has a deep order book, a strong balance sheet, RMB30bn of
cash on hand supporting a relatively generous 40% dividend payout and a strong parent
company sponsorship which is also a global customer.
  HSBC believes SEG is one of the largest beneficiaries of Sinopec (00386) upgrading its 
refining bases. The company typically trades on a PE multiple closer to 8x on average; 
with the recent share action it is on 13.8x/13.2x/12.7x 2017/18/19 multiples. 

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