EBSCN·2024-10-30 07:01Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company, with current prices at 8.20 CNY and 5.81 HKD respectively [2]. Core Insights - The company achieved a record high net profit attributable to shareholders in the first three quarters of 2024, despite a slight decline in total revenue [4][14]. - The average Brent crude oil price for the first three quarters of 2024 was 81.83 USD/barrel, showing a minor decrease of 0.11% year-on-year [4]. - The company’s upstream business benefited from high oil prices and ongoing efforts to increase reserves and production, resulting in an operating profit of 144.3 billion CNY, up 8.7% year-on-year [5][6]. Summary by Sections Revenue Performance - In the first three quarters of 2024, the company reported total revenue of 2256.3 billion CNY, a year-on-year decrease of 1.1% [3]. - For Q3 2024, total revenue was 702.4 billion CNY, down 12.4% year-on-year and 5.3% quarter-on-quarter [3]. Profitability - The net profit attributable to shareholders for the first three quarters of 2024 was 132.5 billion CNY, an increase of 0.7% year-on-year [3]. - In Q3 2024, the net profit was 43.9 billion CNY, a decrease of 5.3% year-on-year but an increase of 2.3% quarter-on-quarter [3]. Segment Performance - The upstream segment saw a steady increase in profit, while the refining segment faced challenges due to narrowing margins and rapid oil price declines [5][9]. - The natural gas sales segment achieved an operating profit of 25.3 billion CNY, up 29.7% year-on-year, driven by increased demand [8]. Market Dynamics - The company’s oil and gas production volume for the first three quarters of 2024 was 1342.3 million barrels of oil equivalent, a year-on-year increase of 2.0% [7]. - The domestic natural gas sales volume reached 209.8 billion cubic feet, reflecting an 8.6% increase year-on-year [8]. Financial Health - The company’s debt-to-asset ratio improved to 39.5% by the end of September 2024, a decrease of 1.3 percentage points from the beginning of the year, marking the lowest level in fourteen years [4]. - The report projects net profits for 2024-2026 to be 175.9 billion CNY, 180.3 billion CNY, and 185.0 billion CNY respectively, with corresponding EPS of 0.96, 0.99, and 1.01 CNY per share [14].