EBSCN·2024-07-30 07:03Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of Sinopec, with current prices at 6.70 CNY and 4.93 HKD respectively [2]. Core Views - Sinopec is committed to deepening reforms and driving high-quality development to achieve its annual targets. The company emphasizes the importance of innovation and reform to enhance its operational efficiency and market competitiveness [8][9]. - The company aims to leverage its integrated advantages to accelerate transformation and cultivate new productive forces, focusing on market optimization and risk prevention [9]. - Sinopec plans to establish a "one base, two wings, and three new" industrial structure during the 14th Five-Year Plan, which includes strengthening its energy resource base, enhancing clean oil products, and expanding into new energy, new materials, and new economies [9][10]. Financial Summary - The total share capital is 1,217 million shares, with a total market value of 815.39 billion CNY. The stock has fluctuated between a low of 4.99 CNY and a high of 6.70 CNY in the past year [4]. - The projected net profits for Sinopec from 2024 to 2026 are 704 billion CNY, 752 billion CNY, and 802 billion CNY respectively, with corresponding EPS of 0.58 CNY, 0.62 CNY, and 0.66 CNY [10][11]. - The company’s revenue is expected to show slight growth, with projected revenues of 32,347 billion CNY in 2024, 32,968 billion CNY in 2025, and 33,749 billion CNY in 2026 [11][12]. Industry Context - The report highlights the challenges in the refining and chemical industry, particularly the oversupply of low-end capacity and the shortage of high-end capacity. Sinopec is focusing on developing downstream chemical new materials to address these challenges [9]. - The company is also actively participating in the clean energy transition, with plans to enhance geothermal development, wind power, and photovoltaic layouts, while solidifying its leading position in the hydrogen energy sector [9][10].