Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 7 billion in 2024, representing a year-on-year increase of 2% [1]. - The company plans to focus on optimizing operations, reducing debt, and enhancing shareholder returns, with a dividend payout ratio of 45% and a total dividend amount of 3.2 billion in 2024 [3]. - The supply-side reforms in the industry are expected to support a recovery at the bottom of the cycle, with a significant decrease in the operating rate of Shandong independent refineries [4]. Financial Performance - In 2024, the company is projected to generate operating revenue of 236.4 billion, a slight increase of 0.65% year-on-year, while the net profit attributable to shareholders is expected to be 7 billion, up 2% year-on-year [1][5]. - The average selling prices for refined products, PTA, and new materials are expected to decline, with a decrease of 2.3%, 2.4%, and 11.2% respectively [2]. - The company’s capital expenditure peak is expected to end in the second half of 2024, allowing for a shift in focus towards cost control and shareholder returns [3]. Industry Insights - The oil product market has seen increased regulatory scrutiny, which is expected to enhance the market's standardization and support price recovery [4]. - The anticipated reduction in crude oil and coal prices entering 2025 is expected to benefit the refining sector significantly [2]. - The increase in tariffs on propane may lead to improved price differentials for olefins, benefiting the company's naphtha-based olefin production [4].