降本增产业绩稳定，高分红回报股东

Investment Rating - The report maintains an "Accumulate" rating for Sinopec [1][2] Core Views - The company's performance meets expectations, with 2023 revenue of 32,122.15 billion RMB, a year-on-year increase of 3.2%, and a net profit attributable to shareholders of 604.63 billion RMB, a decrease of 9.9% [1][3] - Cost control measures have proven effective, with an increase in production and sales despite a challenging external environment, leading to a cash operating cost of 755.2 RMB/ton for oil and gas, down 2.3% year-on-year [1][3] - The company proposes a high cash dividend of 0.345 RMB per share for 2023, representing 72.1% of net profit attributable to shareholders, with a total payout ratio of 75% including share buybacks [1][3] Financial Summary - Revenue for 2023 was 3,212,215 million RMB, down 3.2% from 2022, with a projected revenue of 3,363,206 million RMB for 2024, reflecting a growth of 4.7% [3][6] - The net profit attributable to shareholders for 2023 was 60,463 million RMB, a decrease of 9.9%, with forecasts of 65,480 million RMB for 2024, indicating an expected growth of 8.3% [3][6] - The company’s earnings per share for 2023 was 0.50 RMB, with projections of 0.54 RMB for 2024 and 0.62 RMB for 2025 [3][6] Price Target and Valuation - The target price is adjusted to 7.02 RMB based on a 13x PE ratio for comparable companies in 2024 [1][2] - The current stock price is 6.2 RMB, with a potential upside based on the target price [2][4]