Investment Rating - The report maintains an "Outperform" rating for Sinopec Engineering (Group) [3][12][16] Core Views - In the first half of 2024, the company achieved a total revenue of RMB 28.55 billion, representing a year-on-year increase of 15%, while the net profit attributable to shareholders was RMB 1.32 billion, up 0.1% year-on-year [5][15] - The company reported a mid-term dividend payout ratio of 50%, with a declared dividend of RMB 0.15 per share, resulting in a dividend yield of 2.5% based on the closing price on August 16, 2024 [5][15] - New contract amounts reached a historic high of RMB 50.066 billion in the first half of 2024, reflecting a significant year-on-year growth of 32.7% [6][9] Financial Performance - Total revenue for the first half of 2024 was RMB 28.55 billion, with a net profit of RMB 1.32 billion [5][15] - The company repurchased a total of 13.8 million shares on the Hong Kong Stock Exchange, utilizing HKD 67.8 million [15] - The company’s new contracts included significant projects such as the Huizhou Ethylene project, contributing to the overall growth [6][9] Contract Details - The new contracts included major projects such as the EPC contract for the Fujian Gulei Ethylene project worth RMB 6.081 billion and the EPC contract for the Northern Huajin Fine Chemical project worth RMB 5.807 billion [7][9] - The company’s overseas contracts accounted for 34% of the total new contracts, with a notable year-on-year increase of 117.8% [6][9] Segment Performance - The engineering contracting segment generated revenue of RMB 16.68 billion, up 18% year-on-year, while the construction segment achieved revenue of RMB 13.09 billion, reflecting a 16% increase [9][10] - The design consulting and technology licensing segment saw a decline in revenue to RMB 1.52 billion, down 12% year-on-year [9][10] Earnings Forecast - The forecast for net profits for 2024-2026 is RMB 2.64 billion, RMB 3.05 billion, and RMB 3.62 billion, with corresponding EPS of RMB 0.60, RMB 0.69, and RMB 0.82 [12][16] - The target price is set at RMB 6.30 / HK$ 6.81, based on a P/E multiple of 10.5x for 2024 [12][16]
中石化炼化工程：1H24新签合同额创历史同期最好成绩，中期派息比例50%