Core Viewpoint - The report maintains the profit forecast for Sinopec Engineering (02386) for 2025-26, with the current stock price trading at 8x/7x P/E for those years, attributing recent stock price pullbacks to international oil price fluctuations [1] Group 1: Company Performance - In Q1 2025, the company signed new contracts worth 44.37 billion yuan, a year-on-year increase of 31.4%, with a backlog of 201.19 billion yuan, up 16.5% quarter-on-quarter [2] - The company aims for total new orders of 100 billion yuan in 2025, maintaining the same level as 2024, with 63 billion yuan from domestic and 5 billion USD from international markets [3] Group 2: Market Opportunities - The company has secured significant new contracts, including a 11.63 billion yuan project for the Maoming Petrochemical refinery upgrade and a 2.06 billion USD project in Algeria [2] - The company’s overseas revenue share increased from 10% to 17% in FY24, with a target of over 40% for new orders in FY25, indicating a strategic focus on emerging market opportunities [4] Group 3: Financial Health - The company has over 20 billion yuan in cash on hand, with FY24 financial income reaching 1.2 billion yuan, a nearly 10% year-on-year increase, driven by foreign exchange gains [5] - The company’s capital expenditure for 2025 is planned at 164.3 billion yuan, with 67.2 billion yuan allocated to the refining sector, supporting order and workload growth [3]
中金：维持中石化炼化工程跑赢行业评级 目标价6.10港元