Investment Rating - The report maintains a "Buy" rating for the company in both A and H shares [8]. Core Views - The company achieved a Q1 revenue of 106.9 billion RMB, with a year-on-year increase of 13.1% despite a quarter-on-quarter decrease of 4.1% [1]. - The net profit attributable to the parent company for Q1 was 36.6 billion RMB, reflecting a significant year-on-year increase of 71.8% [1]. - The company has shown resilience against oil price fluctuations due to effective cost control and production optimization [1]. Summary by Sections Financial Performance - Q1 oil and gas net production reached 188.8 million barrels of oil equivalent, a year-on-year increase of 4.8% [2]. - The average Brent crude price in Q1 was 75.0 USD per barrel, down 8.3% year-on-year, while the company's realized oil price was 72.7 USD per barrel, a decrease of 7.7% [2]. - The company managed to reduce its oil cost to 27.03 USD per barrel, a decrease of 0.56 USD year-on-year [2]. Market Conditions - The international oil prices fell significantly in April due to the U.S. "reciprocal tariff" policy and OPEC+'s unexpected production increase [3]. - The report predicts Brent crude prices to average 67 USD in 2025 and 66 USD in 2026, with a long-term price floor expected to be above 60 USD per barrel [3]. Project Development - The company successfully launched 7 new projects in Q1, including significant developments in Brazil and Bohai Bay [4]. - Capital expenditures in Q1 were 27.7 billion RMB, a decrease of 4.5% year-on-year, with exploration and development expenditures showing varied trends [4]. Profit Forecast and Valuation - The report forecasts net profits for 2025, 2026, and 2027 to be 142.5 billion, 144.1 billion, and 148.4 billion RMB respectively, with EPS projected at 3.00, 3.03, and 3.12 RMB [5]. - The target prices for A and H shares are set at 37.50 RMB and 27.42 HKD respectively, based on a PE ratio of 12.5x for 2025 [5].

Core Viewpoint - The performance of Sinopec in 2024 is significantly impacted by weak gasoline and diesel consumption, leading to a nearly 17% year-on-year decline in net profit [1][2]. Financial Performance - In 2024, Sinopec's operating revenue decreased by 4.3% to 3.07 trillion yuan, while net profit attributable to shareholders fell by 16.8% to 50.31 billion yuan [2]. - The company's main business revenue dropped by 4.2% to 3.02 trillion yuan due to a decline in both volume and price of refined oil products [2]. Segment Performance - The refining and marketing & distribution segments saw revenue declines of 3.2% and 5.7%, respectively, reaching 1.48 trillion yuan and 1.71 trillion yuan [3]. - Operating profits for the refining segment and marketing & distribution segment plummeted by 67.4% and 28.1%, amounting to 6.71 billion yuan and 18.65 billion yuan [3]. - The chemical segment experienced a significant loss of 9.997 billion yuan, worsening by nearly 4 billion yuan compared to 2023, despite a 1.7% increase in revenue to 523.9 billion yuan [3]. Upstream Growth - The exploration and production segment achieved a 25.4% increase in operating profit to 56.39 billion yuan, despite a slight revenue decline of 0.9% to 297.2 billion yuan [4]. - Cost reductions in LNG procurement, oil and gas cash operating costs, and exploration expenses contributed to the profit growth in this segment [4]. Future Outlook - Sinopec plans to invest 164.3 billion yuan in capital expenditures for 2025, with 76.7 billion yuan allocated to exploration and production, focusing on oil and gas capacity construction [4]. - The company aims to increase production of ethylene by 15.7% to 15.59 million tons in 2024, anticipating a 4.6% growth in domestic ethylene equivalent consumption in 2025 [5].

汽柴油消费疲软拖累业绩，中国石化2024年净利润 同比跌近17% "2024年，国内新增产能持续释放，化工毛利大幅缩窄；受境内汽、柴油经营量及价差下降影响，全年 成品油销售板块息税前利润同比下降23.9%至223亿元。"在3月24日召开的业绩说明会上，中国石化财 务总监寿东华描述了公司过去一年主要经营表现。 2024年，中国石化营业收入同比降低4.3%至3.07万亿元，归母净利润同比下降16.8%至503.13亿元。公 司称，国际原油价格震荡下行，国内交通行业新能源替代加速，化工市场新增产能持续释放，毛利大幅 收窄。由于成品油等产品量价齐跌，公司主营业务收入同比降低4.2%至30152亿元。 中国石化将经营活动分为勘探及开发事业部、炼油事业部、营销及分销事业部、化工事业部四个事业部 和本部及其他。其中，炼油事业部和营销及分销事业部为公司贡献了超过六成经营收入。 由于成品油消费疲软，以及成品油价格随原油价格下降，2024年中国石化炼油事业部和营销及分销事业 部经营收入分别同比下滑3.2%、5.7%，降至1.48万亿元和1.71万亿元，经营收益更是显著下滑67.4%、 28.1%，至67.14亿元和186.46亿 ...