2024-10-31 05:15Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Views - The company achieved a net profit of RMB 1,325.18 billion in the first three quarters of 2024, a year-on-year increase of 0.7%, despite a 1.1% decline in revenue [3] - The third quarter saw a revenue of RMB 7,024.10 billion, down 12.5% year-on-year, but net profit increased by 2.3% quarter-on-quarter, highlighting the resilience of its quality assets [3] - The company’s cash flow from operating activities was RMB 3,389.28 billion, with a net cash outflow from investing activities of RMB 2,039.41 billion, leading to an asset-liability ratio of 39.5%, the lowest in 14 years [3] - The upstream natural gas production grew by 4.0% year-on-year, indicating potential for further increases in oil and gas output [3] - The chemical business saw a profit increase, with chemical product output rising by 9.7% year-on-year, reflecting successful transformation efforts [3] - Natural gas sales volume increased by 8.6% year-on-year, with domestic sales growing by 4.9%, indicating strong demand driven by economic development and energy transition [3] Financial Summary - For the first three quarters of 2024, total revenue was RMB 22,562.79 billion, a decrease of 1.1% from the previous year [5] - The company processed 1,036.2 million barrels of crude oil, a decrease of 0.7% year-on-year, while chemical product output reached 2,864.3 million tons, an increase of 9.7% [3][5] - The forecast for net profit for 2024-2026 is RMB 1,713.51 billion, RMB 1,825.56 billion, and RMB 1,920.94 billion, respectively, with corresponding P/E ratios of 9.5x, 9.0x, and 8.5x [3][4]