Investment Rating - The report maintains a "Buy" rating for Sinopec Engineering (02386) with a target price yet to be specified [4]. Core Insights - The company achieved a revenue of 64.198 billion RMB in 2024, representing a year-on-year increase of 13.9%, and a net profit of 2.466 billion RMB, up 5.5% year-on-year. The gross margin stands at 8.3%, net margin at 3.9%, and return on assets at 3% [1]. - The total new contracts signed in 2024 reached 100.613 billion RMB, marking a 25.4% increase year-on-year, with domestic contracts at approximately 62.102 billion RMB (up 5.6%) and international contracts at about 5.349 billion USD (up 79.6%) [2]. - The company has made significant strides in overseas markets, securing contracts in Saudi Arabia, Kazakhstan, Morocco, and South Africa, indicating a strong international presence and growth potential [2][3]. Summary by Sections Financial Performance - In 2024, Sinopec Engineering reported a revenue of 64.198 billion RMB and a net profit of 2.466 billion RMB, with a dividend of 0.358 RMB per share, marking the highest dividend payout since its listing [1]. Order Growth - The company has seen a continuous double-digit growth in new contracts for three consecutive years, with a total of 100.613 billion RMB in new orders for 2024. The overseas contracts significantly exceeded expectations, showcasing the company's expanding international footprint [2]. Order Structure - The order structure has improved, with a notable increase in coal chemical orders. The new contracts in the coal chemical sector reached 12.478 billion RMB, a staggering 93.7% increase year-on-year, driven by projects in new materials and technologies [3]. Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been slightly adjusted downwards to 2.626 billion RMB and 2.789 billion RMB, respectively, with a new forecast for 2027 set at 2.946 billion RMB. The earnings per share (EPS) are projected at 0.6, 0.63, and 0.67 RMB for the years 2025, 2026, and 2027 [4].
中石化炼化工程：年报点评：业绩符合预期，新签合同表现亮眼-20250317