Xin Lang Cai Jing·2025-08-31 00:28Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, primarily due to falling oil prices and weak domestic demand for refined oil products [1][2][3]. Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 1,409.05 billion yuan, a year-on-year decrease of 10.60% [1]. - The net profit attributable to shareholders was 21.48 billion yuan, down 39.83% year-on-year [1]. - The second quarter saw a revenue of 673.70 billion yuan, a decline of 14.31% year-on-year, and a net profit of 8.22 billion yuan, down 52.73% year-on-year [1]. Group 2: Operational Insights - The company increased its oil and gas equivalent production to 262.81 million barrels, a growth of 2.0% year-on-year, with natural gas production reaching 7,362.8 billion cubic feet, up 5.1% [2]. - The exploration and development segment reported operating income of 23.6 billion yuan, a decrease of 18.9% due to a 15.1% drop in international oil prices [2]. - The refining segment processed 120 million tons of crude oil, down 5.3% year-on-year, with operating income of 3.5 billion yuan, a decline of 50.4% [2]. Group 3: Market Dynamics - The sales volume of refined oil products fell to 11.21 million tons, a decrease of 5.8% year-on-year, influenced by weak domestic demand [3]. - The non-oil business generated a profit of 3.09 billion yuan, a year-on-year increase of 17.0%, with convenience store profits rising by 350 million yuan [3]. - The government is focusing on reducing "involution" in key industries, which may lead to a healthier long-term development for the petrochemical sector [3]. Group 4: Future Outlook - The company expects EPS for 2025, 2026, and 2027 to be 0.37 yuan, 0.40 yuan, and 0.41 yuan respectively, with corresponding PE ratios of 15.42X, 14.51X, and 13.89X, suggesting a "buy" rating [4].