Core Insights - The company reported 1H25 results that met expectations, with revenue of 31.6 billion yuan, a 10% year-on-year increase, and a net profit of 1.39 billion yuan, up 5% year-on-year [1][2] - The company achieved a significant increase in new orders, with a 42% year-on-year growth, reaching 71.2 billion yuan, marking a historical high for the same period [1][2] Financial Performance - Revenue for 1H25 was 31.6 billion yuan, with a net profit of 1.39 billion yuan, resulting in an earnings per share of 0.32 yuan, aligning with expectations [1] - Operating cash flow turned positive at 3.3 billion yuan, while financial income decreased by 130 million yuan due to declining interest rates [1] - Gross margin decreased to 8.2%, down 0.4 percentage points, primarily due to underperformance in the construction segment [1] Development Trends - New signed orders reached 71.2 billion yuan, with domestic orders at 40.2 billion yuan and overseas orders at 4.3 billion USD, achieving 64% and 86% of the annual targets respectively [1] - Major new contracts include significant projects with Sinopec and international contracts in Kazakhstan and Algeria [1] EPC Segment Performance - The EPC segment maintained a stable gross margin of 7.5%, with operating profit margin increasing by 1 percentage point to 4.1%, contributing 57% of operating profit [2] - EPC orders accounted for 76% of new signed orders, indicating a strong contribution to high-quality revenue [2] International Business Growth - International revenue increased by 92% year-on-year to 7.4 billion yuan, now representing 23.5% of total revenue, with new overseas contracts exceeding 40% [2] - Collaborations with international leaders are expected to enhance the company's ability to secure high-value overseas projects [2] Profit Forecast and Valuation - The net profit forecast for 2025 has been reduced by 8.5% to 2.64 billion yuan, while the 2026 profit forecast remains largely unchanged [2] - The target price has been adjusted upward by 8.2% to 6.6 HKD, reflecting a valuation of 8.3x P/E for 2026, indicating a potential upside of 6.8% from the current stock price [2]
中石化炼化工程(02386.HK)：海外业务逐步发力 抵消利率下行