Bank of China Securities·2025-09-11 00:01Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the next 6-12 months [1][5]. Core Insights - The company's revenue for the first half of 2025 was RMB 207.61 billion, a year-on-year decrease of 8.45%, while the net profit attributable to shareholders was RMB 69.53 billion, down 12.79% year-on-year. The second quarter saw revenues of RMB 100.75 billion, a decline of 12.62% year-on-year, and a net profit of RMB 32.97 billion, down 17.60% year-on-year [3][9][10]. - Despite the revenue decline, the company demonstrated strong resilience and risk management capabilities, supported by solid fundamentals in its oil and gas operations and ongoing cost optimization efforts [3][8]. - The company achieved a record high net production of 384.6 million barrels of oil equivalent in the first half of 2025, representing a 6.1% year-on-year increase, with domestic production growing by 7.6% [8][9]. Financial Performance Summary - The company's total revenue for 2025 is projected to be RMB 422.80 billion, with a slight growth rate of 0.5% [7]. - The expected net profit for 2025 is RMB 138.15 billion, reflecting a minimal growth of 0.2% compared to 2024 [7]. - The earnings per share (EPS) for 2025 is estimated at RMB 2.91, with a price-to-earnings (P/E) ratio of 8.9 times [5][7]. Valuation and Market Position - The report highlights that the company is well-positioned to withstand fluctuations in international oil prices due to its low-cost advantage and continuous capacity expansion [5][8]. - The company is expected to maintain a stable dividend payout, with a proposed interim dividend of HKD 0.73 per share, reflecting a payout ratio of 45.5% [8][9].