Investment Rating - The report maintains a "Buy" rating for Sinopec Engineering (2386.HK) with a current price of HKD 5.70 [2] Core Views - The company achieved a record high in new contract signing for H1 2024, with a significant increase in interim dividend payout ratio [5][6] - The company reported a revenue of CNY 28.6 billion for H1 2024, representing a year-on-year growth of 15%, and a net profit of CNY 1.319 billion, up by 0.12% [3][4] - The company is focusing on high-quality development and optimizing its capital structure, maintaining a stable debt-to-asset ratio of 61.6% as of June 30, 2024 [4] Summary by Sections Revenue Performance - The company reported a revenue of CNY 285.53 billion for H1 2024, with a net profit of CNY 13.19 billion, indicating stable growth amidst challenges in the global economy and domestic chemical market [4] New Contracts and Market Expansion - New contracts signed in H1 2024 reached CNY 500.66 billion, a year-on-year increase of 32.7%, with domestic contracts at CNY 331.13 billion (up 10.6%) and overseas contracts approximately USD 2.354 billion (up 117.8%) [5] - The company is diversifying its contract portfolio, with significant contributions from various sectors including refining and new coal chemical projects [5] Dividend and Share Buyback - The interim dividend per share is set at CNY 0.150, with a payout ratio of 50%, up from 40% in H1 2023, reflecting the company's commitment to shareholder returns [6] - The company has repurchased 13.84 million shares for a total of HKD 67.75 million in H1 2024 [6] Future Outlook and Valuation - The company is expected to benefit from ongoing domestic and international market opportunities, with projected net profits of CNY 2.638 billion, CNY 2.915 billion, and CNY 3.182 billion for 2024, 2025, and 2026 respectively [10] - The report highlights the company's low valuation and high dividend yield as key factors for potential investment [10]
中石化炼化工程：2024年半年报点评：24H1新签合同额创历史新高，中期派息率显著提升