ZHONGTAI SECURITIES·2024-08-28 03:07Investment Rating - The report maintains a "Buy" rating for Sinopec (600028.SH) [1] Core Views - The company reported a year-on-year revenue growth of -1.1% for H1 2024, with a net profit increase of 1.7% [4] - The upstream business achieved record highs, while the midstream and downstream sectors showed relative weakness [4] - Capital expenditures have slowed down, leading to improved cash flow and a higher dividend payout ratio [4] - The company plans to increase its cash dividend payout ratio to no less than 65% over the next three years [4] - The expected net profits for 2024-2026 are projected to be 708.0 billion, 753.5 billion, and 806.2 billion respectively, with corresponding P/E ratios of 11.8, 11.1, and 10.4 [4] Financial Performance Summary - For H1 2024, the company achieved a revenue of 15,761.3 billion, with a net profit of 357.0 billion [4] - The average Brent oil price for H1 2024 was $83.42 per barrel, up 4.4% year-on-year [4] - The company's operating cash flow for H1 2024 was 422.69 billion, an increase of 147.07 billion year-on-year [4] - The company plans to distribute a cash dividend of 0.146 yuan per share [4] Business Segment Performance - Upstream exploration and development saw a production of 257.66 million barrels of oil equivalent, a 3.1% increase year-on-year [4] - The refining and chemical sales segments faced challenges due to weak demand for gasoline and diesel, with operating profits of 71.25 billion and -31.64 billion respectively [4] - The company’s capital expenditures for H1 2024 were 558.93 billion, a decrease of 187.74 billion year-on-year [4]