Group 1 - The company reported a revenue of 1,409.05 billion yuan in H1 2025, a year-on-year decrease of 10.60%, and a net profit attributable to shareholders of 21.48 billion yuan, down 39.83% year-on-year [1] - In Q2 2025, the company achieved a revenue of 673.70 billion yuan, a year-on-year decline of 14.31%, with a net profit of 8.22 billion yuan, down 52.73% year-on-year [1] - The company's oil and gas equivalent production increased to 131.84 million barrels in Q2 2025, reflecting a year-on-year growth of 2.3% and a quarter-on-quarter increase of 0.7% [1] Group 2 - The average selling price of crude oil for the company in H1 2025 was 3,415 yuan per ton, a decrease of 12.9% year-on-year due to falling oil prices [1] - The exploration and production segment's EBIT (Earnings Before Interest and Taxes) was 11.89 billion yuan in Q2 2025, down 25.9% year-on-year and 12.8% quarter-on-quarter [1] - The company's refining segment processed 57.84 million tons of crude oil in Q2 2025, a decrease of 8.8% year-on-year, leading to a significant drop in profits [2] Group 3 - The refining segment's EBIT was 0.89 billion yuan in Q2 2025, a decline of 62.89% quarter-on-quarter due to lower product prices and reduced inventory profits [2] - The chemical segment reported an EBIT loss of 2.77 billion yuan in Q2 2025, an increase in losses of 2.24 billion yuan year-on-year and 1.45 billion yuan quarter-on-quarter [2] - The Ministry of Industry and Information Technology is expected to introduce a growth stabilization plan for the petrochemical industry, which may benefit the company by eliminating outdated production capacity [2] Group 4 - The company adjusted its profit forecast, expecting net profits of 45.97 billion yuan, 50.22 billion yuan, and 53.26 billion yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 15.35X, 14.05X, and 13.25X [3]

Investment Rating - The report maintains a "Buy" rating for the company, with an expected net profit of 459.65 billion, 502.19 billion, and 532.60 billion for the years 2025 to 2027, corresponding to PE ratios of 15.35X, 14.05X, and 13.25X respectively [4][12]. Core Views - The company has shown significant results in increasing reserves and production, with a year-on-year increase of 2.3% in oil and gas equivalent production, reaching 131.84 million barrels in Q2 2025 [2]. - The exploration and development segment's profit before tax decreased by 25.9% year-on-year due to external factors such as US tariffs and geopolitical conflicts, alongside a notable drop in Brent oil prices [2]. - The refining segment faced challenges with a decrease in crude processing volume by 8.8% year-on-year, leading to a significant drop in profits [3]. - The chemical sector remains under pressure, with losses reported in the chemical segment due to low industry sentiment and declining margins on key products [3]. - The company is expected to benefit from upcoming policies aimed at stabilizing growth in the petrochemical industry and eliminating outdated production capacity [4]. Financial Summary - For 2025, the company is projected to achieve a revenue of 2,870.62 billion, a decrease of 6.63% from the previous year, and a net profit of 45.97 billion, down 8.64% [5]. - The average selling price of crude oil for the first half of 2025 was 3,415 RMB per ton, reflecting a year-on-year decrease of 12.9% [2]. - The company’s total market capitalization is approximately 705.65 billion RMB, with a closing price of 5.82 RMB as of August 26, 2025 [6].