2024-09-02 05:01Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 8.93 and a sector rating of "Outperform" [12][14]. Core Views - The company's operating performance is steadily improving, with continuous growth in natural gas production and sales [3][14]. - The report highlights that the average realized price of crude oil increased by 8.1% year-on-year, which is higher than the international oil price [14]. - The company achieved a total revenue of RMB 15,538.69 billion in the first half of 2024, representing a year-on-year increase of 5.00% [15]. - The net profit attributable to the parent company for the same period was RMB 886.07 billion, up 3.91% year-on-year [15]. Financial Summary - Revenue and Profitability: - Main revenue for 2022 was RMB 3,239,167 million, with a growth rate of 23.9%. For 2023, it is projected to be RMB 3,011,012 million, reflecting a decline of 7.0% [4]. - EBITDA for 2022 was RMB 400,121 million, expected to decrease to RMB 323,727 million in 2023 [4]. - Net profit attributable to the parent company was RMB 149,375 million in 2022, projected to increase to RMB 161,144 million in 2023, a growth of 7.9% [4]. - Quarterly Performance: - In Q2 2024, total operating revenue was RMB 7,416.85 billion, a slight decrease of 0.76% compared to Q2 2023 [5]. - Net profit for Q2 2024 was RMB 429.26 billion, up 3.07% year-on-year [5]. - Cost Structure: - Total operating costs for the first half of 2024 were RMB 14,388.8 billion, an increase of 4.93% from the previous year [15]. - The report notes a significant reduction in financial expenses by 26.08% year-on-year [15]. - Dividends: - The company plans to distribute a mid-year dividend of RMB 0.22 per share, with a payout ratio of 45.44%, marking a record high for the period [14][15]. Market Position and Outlook - The company is expected to maintain high capital expenditures, with a focus on oil and gas as well as renewable energy sectors, projected at RMB 2,580 billion for 2024 [14]. - The report emphasizes the potential for growth in natural gas sales and the chemical sector, despite a decline in refined oil sales [14].