Financial Performance - Sinopec Engineering reported audited financial results for the year ending December 31, 2024, in compliance with Hong Kong Stock Exchange regulations[3]. - The company achieved an annual revenue of 64.198 billion yuan and a net profit of 2.474 billion yuan, successfully completing all production and operational tasks[20]. - Revenue for 2024 reached RMB 64,198,210, an increase of 13.9% compared to RMB 56,353,293 in 2023[33]. - Net profit attributable to equity holders increased by 5.5% to RMB 2,465,727 from RMB 2,336,743 in 2023[33]. - The proposed final dividend is 0.208 yuan per share, leading to a total annual dividend of 0.358 yuan per share, with a payout ratio of 65%, marking a new high since the company's listing[20]. - The profit attributable to shareholders was RMB 2.466 billion, reflecting a year-on-year growth of 5.5%[52]. - The gross profit margin for 2024 was 8.3%, down from 10.0% in 2023[34]. - The net profit margin decreased to 3.9% in 2024 from 4.2% in 2023[165]. Business Strategy and Outlook - Sinopec Engineering's future outlook includes expanding its business scope and extending its value chain to achieve its vision of becoming a world-leading technology-driven engineering company[12]. - The company aims to enhance its service levels across the energy and chemical engineering sectors, focusing on safety, efficiency, and low-carbon solutions[12]. - The company emphasizes comprehensive service across the entire lifecycle of energy and chemical projects, positioning itself as a full-chain service provider[12]. - The company aims to deepen cooperation with strategic clients and expand partnerships with international engineering firms and core suppliers[22]. - The company plans to increase investment in high-end carbon materials, low-cost oil conversion, and green low-carbon technologies to drive industry advancement[24]. - The company is focusing on international operations and has established a high-performance team with comprehensive engineering service capabilities across the energy and chemical industry[22]. Contracts and Projects - New signed contracts reached 100.613 billion yuan, maintaining double-digit growth for three consecutive years, with overseas new contracts increasing by 79.6% year-on-year to 5.349 billion USD[21]. - The new contract volume signed during the reporting period was RMB 100.613 billion, an increase of 25.4% year-on-year[57]. - The total value of unfinished contracts reached RMB 172.68 billion, reflecting a growth of 26.7% compared to the previous year[58]. - The company executed 1,596 projects with an average daily workforce exceeding 100,000, achieving a cumulative safety record of 380 million hours without reported safety incidents[60]. - New contracts in the strategic emerging business sectors increased by 63% year-on-year, with new contracts in clean energy and new materials totaling RMB 12.4 billion[64]. Technology and Innovation - The company is actively promoting the integration of artificial intelligence in engineering construction, aiming to transform production methods and enhance overall construction efficiency[24]. - The company anticipates that the integration of artificial intelligence with engineering processes will create disruptive value opportunities in the future[25]. - The company has filed 762 new patent applications, with 76.6% being invention patents, and granted 384 new patents, with 52.3% being invention patents[72]. - The company is advancing AI design research, transitioning from traditional to generative design[74]. Financial Position and Assets - Total assets as of December 31, 2024, are RMB 81.51 billion, an increase of RMB 0.42 billion from RMB 81.09 billion in 2023[153]. - Total liabilities decreased to RMB 49.93 billion from RMB 50.17 billion, a reduction of RMB 0.24 billion year-over-year[155]. - The net assets attributable to equity holders increased to RMB 31.51 billion, up by RMB 0.65 billion compared to RMB 30.86 billion in 2023[156]. - Cash and cash equivalents decreased by RMB 1.38 billion during the reporting period, with net cash used in operating activities amounting to RMB 2.21 billion[159]. Related Party Transactions - The total related party transactions amounted to RMB 27.763 billion, with purchases of RMB 2.827 billion and sales of RMB 24.936 billion[182]. - The company provided engineering services to Sinopec Group worth RMB 23.978 billion, also within the annual cap[182]. - The company engaged in technology research and development services for Sinopec Group amounting to RMB 238 million, within the annual cap[183]. Share Repurchase and Capital Management - The company repurchased a total of 17,295,500 H-shares during the reporting period, utilizing funds amounting to HKD 86,510,422.80[195]. - The company plans to cancel 13,397,000 H-shares repurchased from December 18, 2023, to April 30, 2024, representing approximately 0.30% of the total issued share capital[195]. - The company believes that the repurchase of H-shares will enhance earnings per share and overall shareholder returns[196]. Awards and Recognition - The MSCI ESG rating improved to BB, making the company the highest-rated and only one in the Chinese engineering industry to achieve this rating[21]. - The company has received 70 awards for technological progress at the provincial and national levels during the reporting period[72].

Investment Rating - The report assigns a "Buy" rating for Sinopec Engineering Group (SEG) with a target price of 8 HKD, based on a 12x PE for 2025 [5]. Core Insights - Sinopec Engineering Group is a leading energy and chemical engineering company in China, providing comprehensive solutions across various sectors including oil refining, petrochemicals, and clean energy [12][16]. - The company has demonstrated stable profitability with a gross margin around 10% and a net margin of approximately 5% from 2019 to 2023, alongside a consistent dividend payout ratio of 65% [16][22]. - The domestic market is experiencing a trend of upgrading and transformation in refining, with significant projects underway by major oil companies [3][16]. - The international market, particularly in the MENA region, is witnessing unprecedented growth in oil and gas projects, contributing to a 32.7% increase in overseas orders for SEG [4][16]. Summary by Sections Company Overview - Sinopec Engineering Group, a subsidiary of Sinopec, is a prominent player in the energy and chemical engineering sector, listed in Hong Kong since May 2013 [12][16]. - The company operates 12 subsidiaries, offering a wide range of services including engineering consulting, project management, and construction [12][16]. Industry Landscape - The energy and chemical engineering industry has high barriers to entry due to complex processes, high specialization, and significant capital and technical requirements [2][32]. - SEG's main competitors in the domestic market include China Petroleum Engineering, China Huanqiu Engineering, and China Chemical Engineering [2][29]. Domestic Market Dynamics - The refining sector in China is undergoing structural adjustments, with major projects in ethylene production being implemented by both Sinopec and PetroChina [3][16]. - The coal chemical industry is poised for significant growth, with numerous projects planned through 2025 [3][16]. International Market Opportunities - The MENA region is becoming a focal point for global refining projects, with a total contract value reaching 94 billion USD, significantly higher than previous years [4][16]. - SEG's overseas orders have shown robust growth, continuing from a high growth rate in 2023 [4][16]. Financial Performance and Valuation - The report forecasts net profits for 2024, 2025, and 2026 to be 2.525 billion, 2.757 billion, and 2.943 billion RMB respectively, with corresponding EPS of 0.57, 0.63, and 0.67 RMB [5]. - The company has maintained stable revenue above 50 billion RMB annually from 2019 to 2023, with a notable increase in overseas revenue by 34.1% in 2023 [16][22].

Investment Rating - The report assigns a "Buy" rating for Sinopec Engineering Group (SEG) with a target price of 8 HKD, based on a 12x PE for 2025 [5]. Core Insights - Sinopec Engineering Group is a leading energy and chemical engineering company in China, providing comprehensive solutions across various sectors including oil refining, petrochemicals, and clean energy [12][16]. - The company has demonstrated stable profitability with a gross margin around 10% and a net margin of approximately 5% from 2019 to 2023, alongside a consistent dividend payout ratio of 65% [16][22]. - The domestic market is experiencing a trend of upgrading refining processes and a surge in coal chemical projects, with significant new contracts signed in 2024 [3][4]. - Internationally, SEG is focusing on the MENA region, where the value of awarded oil and gas projects has reached unprecedented levels, contributing to a 32.7% growth in overseas orders [4]. Summary by Sections Company Overview - Sinopec Engineering Group, a subsidiary of Sinopec, is a prominent player in the energy and chemical engineering sector, listed in Hong Kong since May 2013 [12]. - The company operates 12 subsidiaries, providing a wide range of services including engineering consulting, project management, and construction [12][13]. Industry Landscape - The energy and chemical engineering industry has high barriers to entry due to complex processes, specialized requirements, and long project cycles [2][27]. - SEG's main competitors in the domestic market include China Petroleum Engineering Construction and China Chemical Engineering [29]. Domestic Market Trends - The refining sector in China is undergoing structural adjustments, with major projects from both Sinopec and PetroChina aimed at upgrading facilities [3]. - The coal chemical industry is poised for growth, with a projected 295 projects by January 2025, significantly increasing SEG's order intake [3]. International Market Focus - The MENA region is becoming a focal point for SEG, with a record contract value of 94 billion USD for oil and gas projects expected in the upcoming year [4]. - The company has seen a substantial increase in overseas orders, continuing the growth trend established in 2023 [4]. Financial Performance and Valuation - SEG's revenue has remained stable above 50 billion RMB, with a reported revenue of 56.26 billion RMB in 2023, marking a 6% year-on-year increase [16]. - The forecasted net profit for 2024, 2025, and 2026 is 2.525 billion, 2.757 billion, and 2.943 billion RMB respectively, with an EPS of 0.57, 0.63, and 0.67 RMB [5].

Investment Rating - The report maintains a "Buy" rating for Sinopec Engineering (2386.HK) with a current price of HKD 5.54 [2][10]. Core Views - The strategic cooperation between Sinopec Group and China National Petroleum Corporation (CNPC) is expected to enhance long-term development and optimize the company's equity structure [3][4]. - The transfer of shares from Sinopec Group to CNPC, amounting to 21.998 million shares (5% of total shares), strengthens the partnership and resource sharing between the two energy giants [3][4]. - The company has seen a significant increase in new contracts, with a 65.6% year-on-year growth in the first three quarters of 2024, indicating strong market demand and operational capabilities [5][6]. - The diversification of contract sectors, particularly in refining and new coal chemical industries, reflects the company's expanding market presence and operational efficiency [6][7]. - The company is well-positioned to benefit from domestic and international market opportunities, particularly in the Middle East, due to its strategic initiatives and partnerships [7][9]. Summary by Sections Equity Structure and Strategic Cooperation - The share transfer enhances Sinopec Group's control to 61.09% while CNPC becomes the second-largest shareholder with 5% [4]. - This restructuring is seen as a move to improve governance and market recognition, facilitating value realization [4]. Contract Performance - In the first three quarters of 2024, domestic new contracts reached CNY 46.9 billion (up 32%), while overseas contracts surged to CNY 26.6 billion (up 202%), increasing the overseas contract proportion from 20% to 36% [5][6]. - The company’s EPC contract share rose from 54% to 74%, showcasing enhanced total contracting capabilities [5]. Market Opportunities - The domestic market is experiencing rapid development in the petrochemical sector, supported by government policies promoting energy efficiency and carbon reduction [7]. - The Middle East's capital expenditure in refining has exceeded USD 100 billion, presenting significant opportunities for Sinopec Engineering [7][9]. Financial Projections - The report forecasts net profits for 2024-2026 at CNY 2.638 billion, CNY 2.915 billion, and CNY 3.182 billion respectively, with corresponding EPS of CNY 0.60, CNY 0.66, and CNY 0.72 [10][12].

2024 年 10 月 22 日 公司研究 深化海内外市场开拓，前三季度新签合同额同比大增 65.6% ——中石化炼化工程（2386.HK）公告点评 要点 事件：公司发布自愿性合同公告， 2024 年前三季度，公司新签订合同总值为 734.57 亿元，同比增长 65.6%。截至 2024 年 9 月 30 日，公司未完成合同量为 1657.73 亿元。 点评： 新签合同额快速增长，海外市场拓展迅速。2024 年前三季度，公司国内新签合 同额 469 亿元，同比增长 32%，境外新签订合同额 266 亿元，同比增长 202%， 海外合同占比从 2023 年前三季度的 20%增至 36%，延续了强劲的发展势头。 公司业务结构更加优化，EPC 合同占比从 2023 年前三季度的 54%增长至 74%， 表明公司总承包施工能力日益增强，得到业主的高度认可。2024 年前三季度， 在国内市场公司代表合同包括芒果乙烯项目（60.81 亿元）、华锦项目（58.07 亿元）等。在境外市场，公司代表性新合同包括哈萨克斯坦 Silleno 乙烷裂解项 目（12.5 亿美元）、沙特 Jafurah 三期项目（9 亿美元）等。 合同 ...

Investment Rating - The report maintains a "Buy" rating for Sinopec Engineering (2386.HK) [4] Core Views - Sinopec Engineering has signed a $2.5 billion EPC contract for the Silleno petrochemical complex project in Kazakhstan, marking a significant breakthrough in overseas markets and aligning with the Belt and Road Initiative [2][3] - The project is a joint venture with Kazakhstan's national oil and gas company and reflects Sinopec's commitment to enhancing its overseas market development and high-quality growth [3] - The company has seen a substantial increase in overseas contract signings, with a 117.8% year-on-year growth in new contracts amounting to approximately $2.354 billion in the first half of 2024 [3] - The domestic market is also presenting new opportunities, driven by the rapid development of large refining bases and supportive policies for energy efficiency and carbon reduction [3] Summary by Sections Contract Announcement - Sinopec Engineering has entered into a $2.5 billion EPC contract for the ethylene cracking project at the Silleno petrochemical complex in Kazakhstan [2] Market Opportunities - The company is benefiting from the modernization of China's industrial system and the expansion of the petrochemical industry, with significant capital expenditures in high-end new materials [3] - In the overseas market, active capital expenditures in the Middle East have exceeded $100 billion, providing a favorable environment for Sinopec to secure more contracts [3] Financial Forecasts - The report projects Sinopec Engineering's net profit for 2024-2026 to be approximately 2.638 billion, 2.915 billion, and 3.182 billion yuan respectively, with corresponding EPS of 0.60, 0.66, and 0.72 yuan per share [4] - The company is expected to experience rapid growth in performance, supported by its resource advantages and ongoing market expansion [4]

海 外 公 司 （ 中 国 香 港 ） 国泰君安版权所有发送给上海东方财富金融数据服务有限公司.东财接收研报邮箱.ybjieshou@eastmoney.com p1 海外订单高增速，派息金额与比例双增长 中石化炼化工程(2386) [Table_Industry] 石油 [Table_Invest] 评级： 增持 ——中石化炼化工程 2024 年中报业绩点评 股票研究 /[Table_Date] 2024.08.20 | --- | --- | --- | --- | |----------|-------------------|----------------------------|----------------------------| | | 孙羲昱(分析师) | 杨思远(分析师) | 陈浩越(研究助理) | | | 021-38677369 | 021-38032022 | 021-38031035 | | | sunxiyu@gtjas.com | yangsiyuan026856@gtjas.com | chenhaoyue028692@gtjas.com | | 登记编号 | S0880 ...

Investment Rating - The report maintains a "Buy" rating for Sinopec Engineering (2386.HK) with a current price of HKD 5.70 [2] Core Views - The company achieved a record high in new contract signing for H1 2024, with a significant increase in interim dividend payout ratio [5][6] - The company reported a revenue of CNY 28.6 billion for H1 2024, representing a year-on-year growth of 15%, and a net profit of CNY 1.319 billion, up by 0.12% [3][4] - The company is focusing on high-quality development and optimizing its capital structure, maintaining a stable debt-to-asset ratio of 61.6% as of June 30, 2024 [4] Summary by Sections Revenue Performance - The company reported a revenue of CNY 285.53 billion for H1 2024, with a net profit of CNY 13.19 billion, indicating stable growth amidst challenges in the global economy and domestic chemical market [4] New Contracts and Market Expansion - New contracts signed in H1 2024 reached CNY 500.66 billion, a year-on-year increase of 32.7%, with domestic contracts at CNY 331.13 billion (up 10.6%) and overseas contracts approximately USD 2.354 billion (up 117.8%) [5] - The company is diversifying its contract portfolio, with significant contributions from various sectors including refining and new coal chemical projects [5] Dividend and Share Buyback - The interim dividend per share is set at CNY 0.150, with a payout ratio of 50%, up from 40% in H1 2023, reflecting the company's commitment to shareholder returns [6] - The company has repurchased 13.84 million shares for a total of HKD 67.75 million in H1 2024 [6] Future Outlook and Valuation - The company is expected to benefit from ongoing domestic and international market opportunities, with projected net profits of CNY 2.638 billion, CNY 2.915 billion, and CNY 3.182 billion for 2024, 2025, and 2026 respectively [10] - The report highlights the company's low valuation and high dividend yield as key factors for potential investment [10]

研究报告 Research Report 19 Aug 2024 中石化炼化工程 Sinopec Engineering (Group) (2386 HK) 1H24 新签合同额创历史同期最好成绩，中期派息比例 50% Total amount of new contracts reached a historic high, with a 50% mid-term dividend payout ratio in 1H24 [Table_yemei1] 观点聚焦 Investment Focus | --- | --- | |-----------------------------------------------|---------------------| | [Table_Info] 维持优于大市 Maintain OUTPERFORM | | | 评级 | 优于大市 OUTPERFORM | | 现价 | HK$5.57 | | 目标价 | HK$6.81 | | HTI ESG | 5.0-5.0-5.0 | E-S-G: 0-5, (Please refer to the Appendix ...

告中石化煉化工程（集團）股份有限公司 2024 股票代號 : 2386 2024 技術先導型工程公司 半年度報告 創建世界領先 ard iser 18: 144 重要提示 中石化煉化工程（集團）股份有限公司（以下簡稱「中石化煉化工程」或「本公司」）董事會 （以下簡稱「董事會」）及其董事（以下簡稱「董事」）保證本半年度報告所載資料不存在任何 虛假記載、誤導性陳述或重大遺漏，並對其內容的真實性、準確性和完整性負個別及連帶 責任。中石化煉化工程所有董事均出席第四屆董事會第二十次會議。中石化煉化工程董事 長蔣德軍先生、執行董事兼總經理張新明先生、財務總監兼董事會秘書尹鳳兵先生和會計 機構負責人夏吉鵬先生保證本半年度報告中的財務報告真實、完整。 中石化煉化工程及其附屬公司（以下簡稱「本集團」）按國際財務報告準則編製的截至2024 年6月30日止六個月（以下簡稱「本報告期」）的中期財務報告已經香港立信德豪會計師事務 所有限公司進行審計並出具標準無保留意見的審計報告。 本半年度報告包括前瞻性陳述。除歷史事實陳述外，所有本公司預計或期待未來可能或即將發生的業務活動、事件或發展動態的 陳述（包括但不限於預測、目標、估計及經營計 ...