Group 1: Company Overview - Sinopec Engineering (02386) is a leading international energy and chemical construction enterprise under Sinopec, demonstrating strong competitive strength and full-process engineering service capabilities [1] - The company has shown stable operations with a revenue and profit CAGR of 4% and 5% respectively from 2021 to 2024, and a revenue growth of 10% in H1 2025 [1] - The company has a robust order backlog of 215.5 billion yuan, which is 3.4 times its expected revenue for 2024, indicating strong earnings stability [1] Group 2: Financial Performance - The projected net profits for Sinopec Engineering from 2025 to 2027 are 2.56 billion, 2.91 billion, and 3.27 billion yuan, reflecting year-on-year growth of 4%, 14%, and 12% respectively [1] - The expected dividend yields for 2025 and 2026 are 5.6% and 6.3%, showcasing strong investment attractiveness [1] - The company maintains a high dividend payout ratio of over 63% since 2021, with ample cash reserves of 34.3 billion yuan as of H1 2025 [1] Group 3: Industry Trends - The petrochemical industry is experiencing pressure on profitability, leading to a reduction in capital expenditure, but recent policies are aimed at enhancing growth and investment in the sector [2] - The "Petrochemical Industry Stabilization and Growth Work Plan" aims for an average annual growth of over 5% in added value from 2025 to 2026, with a focus on upgrading old facilities [2] - The coal chemical sector is witnessing an upward trend in investment, with significant projects in resource-rich regions like Xinjiang, which are expected to enter a peak phase of bidding and construction starting in 2026 [3] Group 4: International Expansion - The company is benefiting from strong demand in emerging markets such as the Middle East and Africa, with overseas new orders growing by 80% in 2024 and 39% in Q1-Q3 2025 [2] - The contribution of overseas revenue is increasing, with a projected rise from 10% in 2023 to 24% in H1 2025, indicating substantial growth potential in international markets [2]