Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company's performance in Q3 2025 showed significant improvement due to enhanced production and sales of refined products, alongside cost optimization [4] - The average Brent crude oil price for the first three quarters of 2025 was $70 per barrel, a 15% year-on-year decline, while the average price for Q3 was $68 per barrel, reflecting a 2% quarter-on-quarter increase [4] - The company’s average production and sales rate for refined products in Q3 was 89%, a 24 percentage point increase quarter-on-quarter [4] - The company’s capital expenditure has been gradually winding down, with cash payments for fixed assets and other long-term assets amounting to 6.3 billion yuan in the first three quarters of 2025, a 63% year-on-year decrease [4] - The company is expected to benefit from its cost control advantages and industry consolidation, maintaining a high earnings elasticity [5] Financial Performance Summary - For the first three quarters of 2025, the company achieved total revenue of 157.47 billion yuan, a year-on-year decrease of 11.46%, and a net profit attributable to shareholders of 5.02 billion yuan, a year-on-year decrease of 1.61% [1] - In Q3 2025, the company reported total revenue of 53.52 billion yuan, a year-on-year decrease of 17.99% but a quarter-on-quarter increase of 14.13% [2] - The net profit attributable to shareholders in Q3 was 1.97 billion yuan, a year-on-year increase of 81.47% and a quarter-on-quarter increase of 97.41% [2] - The company’s projected net profits for 2025-2027 are 7.07 billion, 8.86 billion, and 9.92 billion yuan, with year-on-year growth rates of 0.3%, 25.4%, and 12.0% respectively [5]