Investment Rating - The report upgrades the investment rating to "Buy" based on expected improvements in the refining business by 2025 [2][5]. Core Views - The refining business is currently under pressure, but improvements are anticipated in 2025 as domestic refining capacity decreases, benefiting the main refineries [2][10]. - The company has adjusted its earnings per share (EPS) forecasts for 2025-2026 to 0.53 and 0.59 yuan respectively, with a new target price set at 7.42 yuan [2][5]. Financial Performance Summary - **Revenue**: The company reported revenues of 3,074,562 million yuan in 2024, a decline of 4.3% year-on-year. Projections for 2025 and 2026 are 2,956,403 million yuan and 2,798,092 million yuan respectively, indicating a continued downward trend [4][10]. - **Net Profit**: The net profit attributable to the parent company for 2024 is projected at 50,313 million yuan, down 16.8% from the previous year. Expected net profits for 2025 and 2026 are 64,417 million yuan and 71,499 million yuan respectively [4][10]. - **EPS**: The EPS for 2024 is expected to be 0.41 yuan, with forecasts of 0.53 yuan for 2025 and 0.59 yuan for 2026 [4][10]. - **Profit Margins**: The gross margin is projected to improve from 15.5% in 2024 to 17.1% in 2026, while the net margin is expected to rise from 1.6% in 2024 to 2.6% in 2026 [4][10]. Industry Outlook - The report highlights a potential turning point in the industry as domestic small refineries face regulatory pressures, which may lead to improved market conditions for major refineries like the company [10]. - The company is also focusing on technological innovation and transitioning into a comprehensive energy service provider, which includes advancements in hydrogen energy and electric vehicle charging services [10].

Investment Rating - The investment rating for the company has been upgraded to "Buy" [2][5] Core Views - The refining business is under pressure, but improvements are expected in 2025 as domestic refining capacity decreases, benefiting the company's main refining operations [1][10] - The company has adjusted its earnings per share (EPS) forecasts for 2025-2026 to 0.53 and 0.59 yuan respectively, with a new target price set at 7.42 yuan [2][5] Financial Performance Summary - Revenue for 2023 is projected at 3,212,215 million yuan, with a year-on-year decline of 3.2% [4] - The net profit attributable to the parent company for 2023 is expected to be 60,463 million yuan, down 9.9% year-on-year [4] - The company's gross margin is forecasted to improve from 15.6% in 2023 to 17.6% by 2027 [4] - The net profit margin is expected to increase from 1.9% in 2023 to 2.6% in 2026 and 2027 [4] Industry Outlook - The industry is anticipated to experience a turning point as regulatory pressures on small-scale refineries increase, leading to a recovery in market share and pricing for major refineries like the company [10]