EBSCN·2024-03-25 16:00Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company [19][34]. Core Views - The company demonstrated resilience against international oil price declines and slow recovery in downstream chemical demand, achieving a record high net profit attributable to shareholders, which increased by 8.3% year-on-year [2][34]. - The integrated advantages of the company's supply chain have become more prominent, enhancing its ability to withstand industry cyclical changes [2][25]. Segment Review - Upstream and Refining Performance: The oil and gas segment reported an operating profit of 148.7 billion yuan, down 10.3% year-on-year, with a significant drop in Q4 profit due to falling oil prices [3][24]. - Natural Gas Sales: The natural gas sales segment achieved a remarkable profit increase of 232% year-on-year, driven by optimized resource procurement and strategic contracts with city gas companies [5][28]. - Refining and Chemical Business: The refining and chemical segment reported a profit of 36.9 billion yuan, down 9.0% year-on-year, with a focus on high-value products and successful project completions [6][29]. - Sales Division: The sales division's profit rose by 67% year-on-year, benefiting from improved market conditions and expanded sales efforts [7][30]. Financial Performance - The company achieved total revenue of 3,011 billion yuan in 2023, a decrease of 7.0% year-on-year, while net profit reached 161.1 billion yuan [24][34]. - Cash flow from operating activities was strong, with a net cash flow of 456.6 billion yuan, marking a 16.0% increase year-on-year [26][34]. Dividend Policy - The company proposed a total dividend of 0.44 yuan per share for 2023, reflecting a payout ratio of 50.0% and a dividend yield of 6.2% based on the stock price as of December 31, 2023 [8][31]. Valuation Comparison - The company's valuation remains low compared to international oil giants, with A-shares and H-shares trading at PB-MRQ of 1.17 and 0.76, respectively, compared to an average of 1.60 for major international peers [8][32].