Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of Sinopec, with current prices at 6.01 CNY and 4.60 HKD respectively [1]. Core Views - The company is expected to face performance pressure in Q2 2025 due to a significant decline in oil prices and low refining margins, with a projected net profit drop of 39.5%-43.7% year-on-year [4][5]. - Despite short-term challenges, the report is optimistic about the company's long-term competitiveness driven by transformation and upgrades in its operations [8][9]. Summary by Sections Performance Outlook - For H1 2025, Sinopec anticipates a net profit of 201-216 billion CNY, with Q2 alone expected to yield 68-83 billion CNY, reflecting a year-on-year decline of 52.1%-60.7% [4][10]. Business Analysis - The company is enhancing its upstream operations with a 2.0% increase in oil and gas equivalent production, while domestic crude oil production remains stable at 126.73 million barrels [6]. - In refining, Sinopec is focusing on optimizing its industrial chain, with a 5.3% decrease in crude oil processing to 111.97 million tons and a notable drop in diesel production by 17.2% [6][7]. Strategic Initiatives - Sinopec is committed to deepening reforms and driving industrial transformation, with a capital expenditure plan of 767 billion CNY for upstream activities in 2025 [8]. - The company aims to enhance its integrated energy services, expanding its charging and hydrogen refueling stations to 10,285 and 142 respectively by the end of 2024 [9]. Financial Projections - The report revises the profit forecasts for 2025-2027, projecting net profits of 453 billion CNY (down 15.4%), 555 billion CNY (down 3.1%), and 662 billion CNY (down 7.6%) respectively, with corresponding EPS of 0.37, 0.46, and 0.55 CNY [10][11].
中国石化(600028):2025年半年度业绩预告点评:25Q2业绩承压,看好公司转型升级驱动长期竞争力提升