Sinopec Corp.(600028) 海通证券·2024-11-01 12:48Investment Rating - The investment rating for Sinopec (600028) is "Outperform the Market" and is maintained [2][25] Core Views - Sinopec reported a revenue of 2366.541 billion yuan for the first three quarters of 2024, a year-on-year decrease of 4.2%, and a net profit attributable to shareholders of 44.247 billion yuan, a decline of 16.5% year-on-year [6][10] - The decline in oil prices has negatively impacted the company's profitability across all business segments, with a significant drop in net profit of 52.1% in the third quarter compared to the previous year [6][10] - The company expects EPS for 2024-2026 to be 0.60, 0.61, and 0.63 yuan respectively, with a reasonable value range of 6.92-7.61 yuan based on comparable company valuation levels [25] Business Segment Summaries Exploration and Production - In Q3 2024, Sinopec's oil and gas equivalent production was 128 million barrels, a year-on-year increase of 1.68% but a quarter-on-quarter decrease of 0.37% [15][17] - The exploration and production segment generated operating revenue of 69.620 billion yuan, down 6.09% year-on-year, with operating profit of 13.547 billion yuan, a decrease of 1.62% quarter-on-quarter [15][19] Refining - The refining segment reported an income of 376.731 billion yuan in Q3 2024, a year-on-year decrease of 7.31%, and an operating loss of 539 million yuan, marking the first quarterly loss of 2023 [19][20] - The decline in crude oil prices has increased operational pressure due to higher refining costs and inventory losses [19] Chemicals - The chemical segment achieved revenue of 135.465 billion yuan in Q3 2024, a slight increase of 0.45% year-on-year, but incurred an operating loss of 1.732 billion yuan [22] - The "ethylene-naphtha" price spread was only 191.37 USD/ton in Q3 2024, significantly lower than the average of 425 USD/ton since 2012, indicating ongoing pressure in this segment [22][23] Marketing and Distribution - The marketing and distribution segment reported revenue of 448.978 billion yuan in Q3 2024, a year-on-year decrease of 8.16%, with operating profit down 64.91% [7][14]