Beijing Yanhun Petrochemical to pay RMB300mln for job cut

BNP learned after discussing with management team of Beijing Yanhun Petrochemical (0325) that the company will pay RMB300mln for laying off 3000 employees, up 85.18% vs forecasted RMB162mln. About RMB70mln salaries will be saved annually. BNP also said investment ratings of Shanghai Petrochemical (0338), Yizheng Chemical Fibre (1033), Beijing Yanhun Petrochemical and Sinopec Zhenhai Refining & Chemical (1128) were downgraded to ˇ§lagging behind the marketˇ¨. Except for not so good profit performance, unveiled expenditure for job cut is believed to be one important factor leading downgrade in profit forecast.

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