Investment Rating - The report maintains a "Buy" rating for Sinopec Engineering (2386.HK) [4][6] Core Insights - The acquisition of East China Pipeline Design Institute enhances the company's pipeline transportation business qualifications, expected to improve overall competitiveness [2] - The company has seen rapid growth in new contracts, with a total of 913 billion yuan signed in the first three quarters of 2025, representing a year-on-year increase of 24.4% [3] - The company is well-positioned to benefit from the modernization of China's industrial system and the high-quality development of the petrochemical industry, particularly in the Middle East market [3] Summary by Sections Acquisition and Business Expansion - The company announced the acquisition of 100% equity in East China Pipeline Design Institute for 191 million yuan, which will strengthen its integrated EPC service capabilities from design to procurement and construction [1][2] - The East China Pipeline Design Institute, established in 1993, has a projected net profit of 10.48 million yuan for 2024 and a net asset value of 168 million yuan as of August 31, 2025 [2] Market Growth and Contract Acquisition - The company has accelerated its market expansion, achieving a 24.4% year-on-year increase in new contracts, with domestic contracts growing by 16.3% and overseas contracts by 38.6% [3] - The total uncompleted contract amount reached 2,155 billion yuan, a 24.8% increase year-on-year, indicating strong future revenue potential [3] Financial Forecast and Valuation - The report forecasts net profits for 2025-2027 to be 2.595 billion, 2.760 billion, and 2.902 billion yuan respectively, with corresponding EPS of 0.59, 0.63, and 0.66 yuan per share [4] - The company is expected to maintain a low valuation with high dividend value, supported by its resource advantages from Sinopec Group [4]
中石化炼化工程（02386）：——中石化炼化工程（2386.HK）公告点评：收购华东管道设计院扩充管道储运业务资质，综合竞争力有望提升