Changjiang Securities·2024-05-20 08:32Investment Rating - The report maintains a "Buy" rating for the company [6][32]. Core Views - The company reported a revenue of 812.184 billion yuan in Q1 2024, a year-on-year increase of 10.88%, and a net profit attributable to shareholders of 45.681 billion yuan, up 4.70% year-on-year [4]. - The refining product margins have narrowed, but the chemical business has turned profitable, with a significant increase in chemical product sales [5]. - The company is expected to achieve EPS of 0.99 yuan, 1.04 yuan, and 1.12 yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 10.39X, 9.91X, and 9.16X [6]. Summary by Sections Financial Performance - In Q1 2024, the company processed 353.8 million barrels of crude oil, a year-on-year increase of 8.2%, and produced 30.482 million tons of refined oil, up 9.8% [5]. - The chemical business achieved a profit of 1.145 billion yuan, turning from loss to profit, with a year-on-year increase of 2.071 billion yuan [5]. - The natural gas sales reached 83.369 billion cubic meters, a 14.2% increase year-on-year, with domestic sales at 67.102 billion cubic meters, up 7.5% [30]. Market and Operational Insights - The company has optimized its natural gas sales by improving the structure of its imported gas resource pool and effectively controlling procurement costs [30]. - The oil and gas equivalent production increased by 2.6% year-on-year to 463.7 million barrels, with domestic production also up by 2.6% [15]. - The unit oil and gas operating cost decreased by 1.8% to 10.38 USD per barrel, contributing to a 4.8% increase in operating profit for the oil and gas and new energy business [15]. Shareholder Returns and Valuation - The company plans to distribute a total cash dividend of 0.44 yuan per share for the year, with a payout ratio of 50%, amounting to approximately 80.529 billion yuan, marking a historical high [16]. - The valuation of the company remains relatively low compared to domestic non-state-owned peers and international counterparts, indicating potential for valuation recovery [16].