UOB KayHian said it’s time to take profits on China’s oil trio. It notes the recovery in oil prices in the last few months as well as the potential implementation of the new fuel pricing reform could be the main reasons underpinning the significant share price outperformance of the three oil majors, but “we believe the two positives are already priced in and it is time for investors to take profits.” The house cuts the sector to Market Weight from Overweight, and tips potential earnings deterioration as posing near-term downside risk; it expects both Sinopec and PetroChina will see 30% on-quarter earnings declines due to bigger refining losses and narrowed petrochemical spreads, and PetroChina, in particular, is likely to miss the FY11 consensus expectations.