Bank of China Securities·2025-09-11 01:47Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the next 6-12 months [2][5][7]. Core Views - The company has demonstrated stable operating performance, with a focus on enhancing long-term investment value. Despite a year-on-year decline in revenue and net profit, the company is expected to benefit from its competitive advantages across the entire industry chain [5][10]. - The report highlights the company's oil and gas production growth, with an increase in natural gas contribution and ongoing upgrades in refining and chemical sectors, which are expected to enhance profitability [5][10]. - The valuation adjustments reflect a cautious outlook on international oil prices, while still recognizing the company's strong refining segment [7][10]. Financial Performance Summary - For the first half of 2025, the company reported total revenue of RMB 1,450.099 billion, a decrease of 6.74% year-on-year, and a net profit attributable to shareholders of RMB 83.993 billion, down 5.42% [5][11]. - The average Brent crude oil price for the first half of 2025 was USD 71.87 per barrel, a decline of 14.5% compared to the previous year [10]. - The company’s oil and gas equivalent production reached 923.6 million barrels, reflecting a 2.0% increase year-on-year, with domestic crude oil production up by 0.6% and marketable natural gas production up by 4.7% [10][11]. Segment Performance - The refining segment reported an operating profit of RMB 9.664 billion, a decrease of 8.0% year-on-year, while the chemical segment saw a profit of RMB 1.392 billion, down significantly due to lower product prices [10]. - The company processed 694.3 million barrels of crude oil, a slight increase of 0.1%, and produced 5.9572 million tons of refined oil, a decrease of 0.9% [10]. Dividend and Capital Expenditure - The interim dividend for 2025 is set at RMB 0.22 per share, with a total payout of approximately RMB 40.265 billion, reflecting a payout ratio of 47.94%, an increase of 1.99 percentage points year-on-year [10]. - The total capital expenditure for 2025 is projected at RMB 262.2 billion, with a focus on oil and gas, renewable energy, refining, and chemical sectors [10].