Investment Rating - The report assigns a "Buy" rating to the company with a target price of 5.36 HKD [2][3]. Core Insights - The company is the largest petrochemical storage and terminal company in China and the only red-chip subsidiary of Sinopec, focusing on petrochemical storage and logistics, including oil unloading, storage, and transportation, as well as LNG shipping [1][4]. - In 2023, the company reported a total throughput of 220 million tons, accounting for 40% of the national crude oil import volume, with a stable gross profit margin above 40% since 2017 [1][4]. - The company plans to expand its business by developing new services for third-party naphtha unloading, which is expected to increase revenue by 0.32-0.63 million HKD annually [1][25]. Summary by Sections Company Overview - The company specializes in petrochemical storage logistics and has a total unloading capacity of approximately 300 million tons per year across seven domestic terminals [1][20]. - In 2023, the company achieved a revenue of 610 million HKD, a slight decrease of 1% year-on-year, while net profit surged by 199% to 1.3 billion HKD due to a low base from the previous year [1][14]. Petrochemical Storage Logistics - The company is expanding its domestic operations by developing naphtha unloading services, which could increase business volume by 20%-40% [1][20]. - The company has divested from loss-making projects and is optimizing its overseas asset layout, which is expected to enhance investment returns [1][29]. LNG Transportation Business - The company currently operates eight LNG vessels, with plans to add three more, which will increase total capacity by 38% and is expected to boost investment returns [1][3]. - The average annual investment return from the existing LNG fleet has been 0.93 billion HKD since 2018 [1][3]. Financial Forecast and Valuation - The company forecasts net profits of 1.36 billion HKD, 1.42 billion HKD, and 1.47 billion HKD for 2024, 2025, and 2026, respectively [1][3]. - The valuation methods used include the price-to-book ratio and the dividend discount model, leading to a target price of 5.36 HKD [1][3].
中石化冠德：石化仓储码头龙头 海内外业务齐发展