Soochow Securities·2024-03-21 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 416.6 billion yuan in 2023, a decrease of 1% year-on-year, and a net profit attributable to shareholders of 123.8 billion yuan, down 13% year-on-year. In Q4 2023, revenue was 109.8 billion yuan, also down 1% year-on-year and 4% quarter-on-quarter, with a net profit of 26.2 billion yuan, down 20% year-on-year and 23% quarter-on-quarter [1] - The company has increased its oil and gas production targets for 2024-2025 and disclosed its 2026 production goals, achieving a net production of 67.8 million barrels of oil equivalent in 2023, an increase of 8.7% year-on-year [1] - Capital expenditures have been raised, with 2023 capital spending adjusted to 129.6 billion yuan, primarily for domestic oil and gas field development and overseas projects in Guyana and Brazil [1] - The company has effectively controlled its oil barrel costs, with a main cost of 28.83 USD/barrel in 2023, a decrease of 1.56 USD/barrel year-on-year [1] - The company is focused on shareholder returns, with a total dividend payout of approximately 54 billion yuan in 2023, resulting in a dividend yield of 4.0% for A shares and 4.9% after tax for H shares [1] - Profit forecasts have been adjusted, with net profits projected at 138.2 billion yuan for 2024 and 154.5 billion yuan for 2025, and a new estimate of 159.8 billion yuan for 2026 [1] Summary by Sections Financial Performance - In 2023, total revenue was 416.6 billion yuan, with a year-on-year decline of 1.33%. The net profit attributable to shareholders was 123.8 billion yuan, down 12.6% year-on-year [8] - The company’s earnings per share (EPS) for 2023 was 2.60 yuan, with a price-to-earnings (P/E) ratio of 10.90 [8] Production and Capital Expenditure - The actual net production in 2023 was 67.8 million barrels of oil equivalent, exceeding initial targets, with 2024 net production targets set at 70-72 million barrels [1] - Capital expenditures for 2023 were set at 129.6 billion yuan, with plans for 125-135 billion yuan in 2024 [1] Cost Management - The main cost per barrel was 28.83 USD, a reduction of 5.1% year-on-year, indicating effective cost management [1] Shareholder Returns - The company maintained a dividend payout ratio of approximately 43.6% in 2023, with dividends of 0.59 and 0.66 HKD per share for mid-year and year-end, respectively [1]