Core Viewpoint - The company has been selected as a qualified supplier for the acid fracturing materials procurement organized by Sinopec International Co., Ltd. for the years 2025-2026 [1] Group 1: Supplier Qualification - The company ranked 2nd among bidders for coated quartz sand [1] - The company ranked 3rd among bidders for quartz sand proppant [1] - The company ranked 4th among bidders for high-temperature coated sand [1] - The company ranked 5th among bidders for quartz sand proppant [1] Group 2: Contract Signing - The company plans to sign relevant contracts with Sinopec Southwest Oil & Gas Company promptly [1]

Core Viewpoint - The first domestically produced Safety Instrumented System (SIS) by Sinopec has passed testing and will be applied in the new aviation kerosene hydrogenation unit of Zhonghan Petrochemical, marking a significant advancement in the industry’s focus on safety and reliability [1] Group 1: Product Development - The domestically produced SIS has established a self-developed technology system comprising "chip - control system - operation platform" [1] - The system has received safety certification from domestic authoritative institutions, meeting the stringent operational requirements of high temperature, high pressure, and high risk [1] Group 2: Testing and Performance - Multiple rounds of comprehensive testing were conducted by Zhonghan Petrochemical, Sinopec Engineering Construction Co., and Zhejiang Zhong控, focusing on both basic signal transmission accuracy and control logic response [1] - The testing included 29 special tests under extreme conditions, demonstrating high CPU computation efficiency, good temperature rise control, and rapid operational response [1] - The SIS maintained stable operation and outperformed previously used non-domestic systems, particularly in environments with strong electromagnetic interference [1]

人民财讯9月9日电，据天津日报，9月9日，天津市委书记陈敏尔，市委副书记、市长张工与中国石油化 工集团有限公司党组书记、董事长侯启军一行座谈。陈敏尔、张工说，面向"十五五"，希望中国石化 （600028）拓展与天津市务实合作，找准新的合作点，在津布局更多项目和业务，从存量中做出增量， 推动产业成龙配套、成链成群。侯启军说，中国石化将继续把天津作为战略布局的重点区域，加快推进 项目建设，为保障国家能源安全、助力天津全面建设社会主义现代化大都市贡献力量。 ...

Core Viewpoint - The company experienced a significant decline in revenue and net profit in the first half of 2025, attributed to falling oil prices and reduced sales volumes, but maintains a buy rating due to ongoing optimization in refining and accelerated new material development [1][3]. Financial Performance - In the first half of 2025, the company achieved revenue of RMB 1,409.05 billion, a year-on-year decrease of 10.60%, and a net profit attributable to shareholders of RMB 21.48 billion, down 39.83% [1]. - For Q2 2025, revenue was RMB 673.70 billion, a decline of 14.31%, with net profit at RMB 8.22 billion, down 52.73% [1]. - Operating income for the first half was RMB 33.40 billion, a decrease of 34.5%, with a weighted average return on equity of 2.61%, down 1.76 percentage points [1]. Segment Performance - The exploration and development division reported operating income of RMB 23.64 billion, down 18.9%, while the refining division saw a 50.4% drop to RMB 3.54 billion, and the marketing and distribution division's income fell 45.7% to RMB 7.96 billion [2]. - The chemical division incurred a loss of RMB 4.22 billion, an increase in loss of RMB 1.06 billion year-on-year [2]. - Cash flow from operating activities was RMB 61.02 billion, up 44.4%, with a debt-to-asset ratio of 54.10%, an increase of 0.15 percentage points [2]. Production and Cost Management - The average selling price of crude oil was RMB 3,415 per ton, down 12.9%, while the average selling price of self-produced natural gas was RMB 1,830 per thousand cubic meters, down 3.4% [2]. - Oil and gas equivalent production reached 262.81 million barrels, a 2.0% increase, with natural gas production at 736.28 billion cubic feet, up 5.1% [2]. - Cash operating costs for oil and gas were RMB 718.0 per ton, down 4.7%, while the unit cash operating cost for refining was RMB 206.5 per ton, up 5.7% [3]. Strategic Initiatives - The company plans to process 130 million tons of crude oil in the second half of 2025, adjusting product structure and increasing production of aviation kerosene and high-value products [3]. - Capital expenditure for the first half of 2025 was RMB 43.8 billion, with a planned reduction of about 5% for the full year [3]. - The company distributed interim dividends of RMB 0.088 per share, totaling RMB 10.67 billion, with a payout ratio of 49.67% [3]. - Future focus includes transformation and innovation, targeting emerging industries such as domestic large aircraft, new energy vehicles, and advanced materials [3]. Valuation - Due to unfavorable factors like fluctuating international oil prices and declining domestic fuel consumption, profit forecasts for 2025-2027 have been adjusted, with expected net profits of RMB 44.79 billion, RMB 49.31 billion, and RMB 55.54 billion respectively [3]. - Corresponding diluted EPS is projected at RMB 0.37, RMB 0.41, and RMB 0.46, with current stock price corresponding to P/E ratios of 15.4x, 14.0x, and 12.4x [3].

Core Insights - China Petroleum & Chemical Corporation (Sinopec) has showcased its achievements in energy security, industrial upgrading, and green transformation during the "14th Five-Year Plan" period, with total revenue reaching 2.1 trillion yuan, a nearly 22% increase from the previous five-year period [1] - The company has made significant contributions to Hubei's strategic development, with a total tax contribution of 100.5 billion yuan and annual revenue exceeding 430 billion yuan [1] Supply Chain Assurance - Sinopec's subsidiary, Zhonghan Petrochemical, has achieved a refining capacity of 8.5 million tons per year and an ethylene production capacity of 1.1 million tons per year, supplying over 20.8 million tons of refined oil, which accounts for 65% of the Wuhan market [2] - Jingmen Petrochemical has developed over 60 types of specialty oils, capturing 50% of the domestic market for high-grade white oil and successfully replacing some imported products [2] - The sales division in Central China has sold nearly 130 million tons of refined oil and chemical products over five years, generating close to 900 billion yuan in revenue [2] Innovation and Transformation - Sinopec's subsidiaries have expanded their business areas, with Zhonghan Petrochemical producing 4.1 million tons of ethylene and 12.02 million tons of chemical products, contributing over 232.3 billion yuan to industrial output [3] - Jingmen Petrochemical has successfully developed seven high-end specialty oil products, including lithium battery separator white oil and SEPS [3] Technological Advancements - Jianghan Oilfield has implemented a "data + platform + application" model, improving gas field recovery rates to 23.3%, doubling from initial development stages [4] Environmental Initiatives - Sinopec's subsidiaries are actively participating in the "Beautiful Hubei" strategy, with initiatives to protect the Yangtze River and reduce carbon emissions [5][6] - Jianghan Oilfield has built 46 solar power stations, generating 170 million kilowatt-hours of green electricity and reducing carbon emissions by 97,000 tons [6] - Jingmen Petrochemical has implemented various projects to reduce volatile organic compounds (VOCs) emissions, achieving a 70.4% wastewater reuse rate [6]

Core Insights - The China Satellite Navigation and Positioning Association announced the winners of the 2025 Satellite Navigation and Positioning Science and Technology Awards, with Sinopec's research on the integration of BeiDou technology in the oil and petrochemical industry receiving significant recognition [1] Group 1: Awards and Achievements - Sinopec's "Research on the Integration of BeiDou in the Oil and Petrochemical Industry" won the second prize for technological progress, while "BeiDou Time-Space Intelligent Driving for Oil and Petrochemical Integration" received the gold award for innovative applications [1] - The research achieved three major innovations, including the development of a self-adaptive fusion positioning method under complex working conditions, overcoming key technologies for precise BeiDou positioning in sparse station networks, and establishing a comprehensive BeiDou time-space service technology system for the petrochemical industry [1] Group 2: Applications and Impact - The results have been successfully applied in remote unattended well site data transmission and monitoring of important equipment deformation, filling multiple technical gaps in the industry [1] - The innovative application of BeiDou technology has been integrated into an application network covering 89 enterprises, focusing on vehicle, personnel, and asset monitoring, high-precision deformation monitoring, and emergency communication [1] - A fully independent intellectual property rights operational service platform has been developed, yielding positive economic and social benefits [1] Group 3: Recognition and Scope - The Satellite Navigation and Positioning Science and Technology Award is the only authoritative award in the domestic satellite navigation field approved by the Ministry of Science and Technology, with a total of 28 technological progress awards and 29 innovative application awards presented this year [1]

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 5.69 and a sector rating of "Outperform" compared to the market [2][4]. Core Insights - The company's operating performance is under short-term pressure, with a significant decline in revenue and net profit for the first half of 2025. Revenue decreased by 10.60% year-on-year to RMB 1,409.05 billion, while net profit attributable to shareholders fell by 39.83% to RMB 21.48 billion [4][10]. - The refining business structure is continuously optimizing, and the layout of new materials is accelerating, supporting the "Buy" rating despite the challenges [6][9]. Summary by Sections Financial Performance - In the first half of 2025, the company reported total revenue of RMB 1,409.05 billion, down 10.60% from RMB 1,576.13 billion in the same period of 2024. The net profit attributable to shareholders was RMB 21.48 billion, a decrease of 39.83% from RMB 35.70 billion [10][11]. - The second quarter of 2025 saw revenue of RMB 673.70 billion, a 14.31% decline year-on-year, with net profit of RMB 8.22 billion, down 52.73% [11][12]. Business Segments - The exploration and development segment showed resilience, with an oil and gas equivalent production of 262.81 million barrels, a 2.0% increase year-on-year. The average realized sales price for crude oil was RMB 3,415 per ton, down 12.9% [9][10]. - The refining segment processed 120.94 million tons of crude oil, a decrease of 5.5% year-on-year, with a shift towards increasing the production of aviation kerosene and high-value products [9][10]. Valuation and Forecast - The report adjusts the profit forecast for 2025-2027, estimating net profits of RMB 44.79 billion, RMB 49.31 billion, and RMB 55.54 billion respectively, with corresponding EPS of RMB 0.37, RMB 0.41, and RMB 0.46. The current P/E ratios are projected at 15.4x, 14.0x, and 12.4x [6][8].

Group 1 - Saudi Aramco, Sinopec, and Fujian Refining & Petrochemical Company have established a joint venture [1] - The joint venture aims to enhance refining capacity and improve operational efficiency [1] - This collaboration reflects the growing partnership between Saudi Arabia and China in the energy sector [1]

Core Viewpoint - China Petroleum & Chemical Corporation's Henan Refining & Chemical Company has launched a comprehensive safety production hazard investigation and rectification initiative named "Thunder Action" to enhance safety measures and support the company's profitability and high-quality development [1][2] Group 1: Action Plan and Structure - The "Thunder Action" initiative commenced on September 1 and will continue until the end of December 2025, structured into three phases: self-inspection, inspection preparation, and deep rectification [1] - A working leadership group has been established, led by the company's main leaders, to ensure clear division of responsibilities and adherence to timelines for the safety investigation and rectification work [1] Group 2: Focus Areas and Methodology - The company is focusing on eight key areas, including safety awareness, safety warning sign management, and process safety risk prevention during the self-inspection phase [2] - A "net-style investigation + penetrating rectification" approach is being implemented to thoroughly identify hidden hazards and address recurring issues, ensuring no oversight in the investigation process [2] Group 3: Implementation and Education - The company emphasizes quick identification and rectification of issues, requiring immediate correction of general hazards and daily updates on their status [2] - Employee safety education and learning from accident cases are being reinforced to establish a strong safety culture and ensure ongoing vigilance against major accident risks [2]

Core Viewpoint - Anhui Construction (600502) has established a new subsidiary, Anhui Construction High-speed Energy Co., Ltd., with a registered capital of 100 million yuan, focusing on new catalytic materials, specialized chemical products, and electric vehicle charging infrastructure [1] Company Summary - The newly formed company is co-owned by Anhui Construction Group Holding Co., Ltd. and Sinopec Sales Co., Ltd., a subsidiary of China Petroleum & Chemical Corporation (600028) [1] - The business scope includes sales of new catalytic materials and additives, specialized chemical products (excluding hazardous chemicals), and operation of electric vehicle charging infrastructure [1]