Shanxi Securities·2024-09-04 21:37Investment Rating - The report assigns a "Buy-B" rating to the company, indicating an expected price increase of over 15% relative to the benchmark index [8]. Core Insights - The company maintains high capital expenditures, accelerating project construction, with a projected total capital expenditure of 213 billion yuan for 2024 in the oil and gas and new energy segments [1]. - The oil and gas and new energy segments experienced a year-on-year revenue growth of 7%, while refining and chemical business profits decreased due to narrowing margins [3][30]. - The company reported a total revenue of 1,533.87 billion yuan for the first half of 2024, a 5% increase year-on-year, with net profit attributable to shareholders reaching 886.07 billion yuan, up 3.91% from the previous year [5][30]. Financial Performance - The operating profit for the oil and gas and new energy segment was 916.59 billion yuan, a 7.2% increase from 855.15 billion yuan in the same period last year [3]. - The refining and chemical business reported an operating profit of 136.29 billion yuan, down from 183.50 billion yuan, primarily due to reduced profit margins [3]. - Natural gas sales saw a significant profit increase of 19.0%, reaching 168.05 billion yuan, driven by optimized resource allocation and lower procurement costs [4][30]. Future Projections - The company forecasts net profits of 1,722.29 billion yuan, 1,788.24 billion yuan, and 1,851.68 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 8.8, 8.4, and 8.2 [8][22]. - The report highlights the company's strong position in the domestic oil and gas market, with the highest reserves and a comprehensive industry chain from upstream exploration to downstream refining and sales [8][30]. Shareholder Returns - The company plans to distribute a cash dividend of 0.22 yuan per share for the mid-2024 period, totaling approximately 40.27 billion yuan [6].