NORTHEAST SECURITIES·2025-08-27 05:47Investment Rating - The report maintains a "Buy" rating for the company, with an expected net profit of 459.65 billion, 502.19 billion, and 532.60 billion for the years 2025 to 2027, corresponding to PE ratios of 15.35X, 14.05X, and 13.25X respectively [4][12]. Core Views - The company has shown significant results in increasing reserves and production, with a year-on-year increase of 2.3% in oil and gas equivalent production, reaching 131.84 million barrels in Q2 2025 [2]. - The exploration and development segment's profit before tax decreased by 25.9% year-on-year due to external factors such as US tariffs and geopolitical conflicts, alongside a notable drop in Brent oil prices [2]. - The refining segment faced challenges with a decrease in crude processing volume by 8.8% year-on-year, leading to a significant drop in profits [3]. - The chemical sector remains under pressure, with losses reported in the chemical segment due to low industry sentiment and declining margins on key products [3]. - The company is expected to benefit from upcoming policies aimed at stabilizing growth in the petrochemical industry and eliminating outdated production capacity [4]. Financial Summary - For 2025, the company is projected to achieve a revenue of 2,870.62 billion, a decrease of 6.63% from the previous year, and a net profit of 45.97 billion, down 8.64% [5]. - The average selling price of crude oil for the first half of 2025 was 3,415 RMB per ton, reflecting a year-on-year decrease of 12.9% [2]. - The company’s total market capitalization is approximately 705.65 billion RMB, with a closing price of 5.82 RMB as of August 26, 2025 [6].