Huaxin Securities·2024-08-27 06:47Investment Rating - The report maintains a "Buy" investment rating for Sinopec (600028.SH) [5][10] Core Views - The company achieved a significant year-on-year increase in net profit in Q2 2024, with a growth of 15.84% [2] - The company emphasizes shareholder returns, committing to a cash dividend ratio of no less than 65% over the next three years [3] - Capital expenditures are gradually reduced, leading to a substantial increase in cash flow, with expectations for continued improvement in the future [4][9] Summary by Sections Financial Performance - In the first half of 2024, Sinopec reported operating revenue of 1,576.13 billion yuan, a year-on-year decrease of 1.10%, and a net profit attributable to shareholders of 35.703 billion yuan, a year-on-year increase of 1.69% [1] - In Q2 2024, the company achieved operating revenue of 786.164 billion yuan, a year-on-year decrease of 2.02%, while net profit attributable to shareholders was 17.387 billion yuan, a year-on-year increase of 15.84% [1][2] Production and Sales - The oil and gas exploration and production segment saw a total equivalent production of 257.66 million barrels in the first half of 2024, a year-on-year increase of 3.1% [2] - The company processed 126.7 million tons of crude oil and produced 77.3 million tons of refined oil, with gasoline and kerosene production increasing by 6.6% and 15.2% respectively [2] - Total refined oil sales reached 119 million tons, a year-on-year increase of 2.1%, with domestic sales declining by 2.5% and overseas sales increasing by 19.64% [2] Shareholder Returns - The board of directors proposed a cash dividend of 0.146 yuan per share (before tax) for the first half of 2024 and emphasized a commitment to maintaining a high dividend payout ratio [3] Cash Flow and Capital Expenditure - Capital expenditures in the first half of 2024 were 55.893 billion yuan, a decrease of 18.8 billion yuan compared to the same period last year [4] - The net cash inflow from operating activities increased by 14.7 billion yuan year-on-year, contributing to a significant rise in cash flow [4][9] Profit Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 70.691 billion yuan, 76.853 billion yuan, and 81.522 billion yuan respectively, with corresponding PE ratios of 11.9, 10.9, and 10.3 times [10]