Sinopec Corp.(600028) 华鑫证券·2024-11-08 01:02Investment Rating - The report maintains a "Buy" investment rating for Sinopec (600028.SH) [1] Core Views - Sinopec's Q3 performance is under pressure due to declining oil prices and reduced profit margins in petrochemical products, leading to a significant year-on-year decrease in net profit [1] - The company emphasizes shareholder returns, committing to a cash dividend payout ratio of no less than 65% over the next three years, indicating a stable high dividend expectation for investors [1] - The chemical sector continues to face challenges, but Sinopec has made notable progress in reducing losses, with expectations for a potential turnaround as oil prices decline and demand improves [1] Summary by Sections Financial Performance - For the first nine months of 2024, Sinopec reported revenue of 23,665.41 billion yuan, a year-on-year decline of 4.19%, and a net profit attributable to shareholders of 44.247 billion yuan, down 16.46% [1] - In Q3 2024, the company achieved revenue of 7,904.1 billion yuan, a year-on-year decrease of 9.8%, and a net profit of 8.544 billion yuan, reflecting a year-on-year decline of 52.15% [1] Shareholder Returns - The board has proposed a cash dividend of 0.146 yuan per share (tax included) for the year, reinforcing the company's commitment to shareholder returns [1] Chemical Sector Performance - The domestic chemical market remains in a downturn, with a total operating volume of 62.17 million tons, a year-on-year decrease of 1.26 million tons [1] - Despite the challenges, Sinopec's chemical segment has shown significant improvement in reducing losses, with a pre-tax loss of 4.787 billion yuan, a reduction of 1.92 billion yuan compared to the previous year [1]