SPC(SH:600688) EBSCN·2024-08-23 00:07Investment Rating - The report maintains an "Accumulate" rating for both A-shares and H-shares of the company [4][3]. Core Views - The company reported significant growth in its performance for the first half of 2024, with a net profit increase of 10 billion yuan year-on-year, despite a slight decline in revenue [2][3]. - The recovery in downstream demand, particularly for gasoline and aviation kerosene, has positively impacted the company's refining profitability [3]. - The company is steadily advancing its new materials strategy, particularly in carbon fiber, which is expected to see rapid growth during the 14th Five-Year Plan period [3]. Summary by Sections Financial Performance - In H1 2024, the company achieved operating revenue of 43.5 billion yuan, a year-on-year decrease of 3%, while net profit attributable to shareholders was 0.28 billion yuan, an increase of 10 billion yuan [2][3]. - Q2 2024 saw operating revenue of 22.3 billion yuan, down 3% year-on-year but up 5% quarter-on-quarter, with a net profit of -0.56 billion yuan, reflecting a year-on-year increase of 7.7 billion yuan [2][3]. Market Demand and Sales - The sales volume for gasoline, diesel, and aviation kerosene in H1 2024 was 1.67 million tons, 1.36 million tons, and 720,000 tons, showing year-on-year changes of +6%, -26%, and +19% respectively [3]. - The average selling prices for these products increased by 5%, 8%, and 2% respectively [3]. New Materials Strategy - The carbon fiber project is operating steadily, with a production capacity of 24,000 tons per year for raw silk and 12,000 tons per year for high-performance carbon fiber [3]. - The company aims to strengthen its core industries in high-end new materials, focusing on polyolefins, elastomers, and fine chemicals [3]. Profit Forecast and Valuation - The company’s net profit forecasts for 2024, 2025, and 2026 are 311 million yuan, 659 million yuan, and 1.045 billion yuan respectively, with corresponding EPS of 0.03 yuan, 0.06 yuan, and 0.10 yuan [4][3].