Soochow Securities·2025-08-01 08:01Investment Rating - The report maintains a "Buy" rating for both A and H shares of Sinopec [1] Core Views - The company's performance in the first half of 2025 is expected to be under pressure, with a projected net profit decline of 39.5% to 43.7% year-on-year, primarily due to falling international oil prices and intense market competition [7] - Future benefits are anticipated from the reform of fuel consumption tax and the reduction of internal competition in refined oil products [7] - The report highlights the company's commitment to shareholder returns, projecting a dividend payout ratio of 73% for 2025, resulting in a dividend yield of 5.0% for A shares and 5.8% for H shares after tax [7] Financial Forecasts - Total revenue for 2025 is estimated at 2,959,498 million RMB, a decrease of 3.74% year-on-year [1] - The net profit attributable to shareholders is projected to be 50,172 million RMB for 2025, a slight decrease of 0.28% year-on-year [1] - Earnings per share (EPS) is expected to remain at 0.41 RMB for 2025, with a projected increase to 0.60 RMB by 2027 [1] - The report adjusts profit forecasts for 2025-2027, estimating net profits of 502 billion RMB, 604 billion RMB, and 723 billion RMB respectively [7] Operational Data - In H1 2025, the company expects to produce 263 million barrels of oil equivalent, with natural gas contributing to production growth [7] - Oil processing volume is projected to decline by 5.3% year-on-year to 120 million tons in H1 2025 [7] - Domestic refined oil sales are expected to decrease by 3.4% year-on-year, totaling 87 million tons in H1 2025 [7]