Sinopec Corp.(SH:600028) EBSCN·2026-01-09 05:23Investment Rating - The report maintains an "Accumulate" rating for the petrochemical industry [1] Core Views - The strategic restructuring between China Petroleum & Chemical Corporation (Sinopec) and China Aviation Oil Group aims to enhance the competitiveness of the refined oil and trade sectors across the entire industry chain [4][9] - Sinopec is recognized as the world's largest refining company and the second-largest chemical company, with a comprehensive business model that includes oil and gas, refining, chemicals, and finance [4] - The restructuring is aligned with the ongoing reforms in state-owned enterprises, focusing on optimizing the layout of state capital and enhancing core competitiveness [9] Summary by Sections Industry Overview - The global economic recovery faces challenges, with geopolitical risks rising and international oil prices fluctuating downwards, leading to significant supply-demand imbalances [4] - In 2024, Sinopec reported total revenue of 31,388 billion yuan, a decrease of 3.3% year-on-year, and a net profit of 578 billion yuan, down 13.0% year-on-year [4] Company Profiles - Sinopec operates four main business segments: oil and gas, refining and sales, chemicals and new materials, and capital and finance [4] - China Aviation Oil Group is the largest aviation fuel company in Asia, providing fuel supply services to 258 transport airports and 454 general airports across China [5][6] Strategic Developments - The merger will create a closed-loop industry chain for aviation kerosene, enhancing Sinopec's market power and reducing costs in the sales process [8] - The integration is expected to stabilize operations for China Aviation Oil Group by securing a reliable upstream supply from Sinopec [8] Investment Recommendations - The report suggests focusing on several companies under Sinopec, including: - Sinopec itself, as a leading integrated petrochemical enterprise [10] - Sinopec Engineering, leveraging platform advantages and overseas opportunities [10] - Sinopec Oilfield Services, benefiting from the oil service market [10] - Shanghai Petrochemical, with significant competitive advantages in refining [10] - Sinopec Mechanical, a quality supplier for oil and gas exploration equipment [10] - Sinopec Guande, exploring business transformation in logistics [10] - Taishan Petroleum, enhancing service platforms in refined oil distribution [10]