Sinopec Corp.(600028) 国海证券·2024-11-11 15:55Investment Rating - The report maintains a "Buy" rating for Sinopec (600028) [1][9][18] Core Views - The rapid decline in crude oil prices has pressured the company's Q3 performance, with a year-on-year revenue decrease of 4.19% and a net profit decline of 16.46% for the first three quarters of 2024 [1][9] - Despite the challenges, the company has initiated share buybacks, reflecting confidence in its long-term value [6][9] Financial Performance Summary - For the first three quarters of 2024, Sinopec achieved revenue of 23,665.41 billion yuan, down 1,034 billion yuan year-on-year, and a net profit of 442.47 billion yuan, down 87 billion yuan year-on-year [1][9] - In Q3 2024, the company reported revenue of 7,904.10 billion yuan, a year-on-year decrease of 9.80%, and a net profit of 85.44 billion yuan, down 52.15% year-on-year [1][9] - The company's oil and gas equivalent production reached 386.06 million barrels, a year-on-year increase of 2.6% [1][9] Segment Performance Summary - Exploration and Production Division: Revenue of 668 billion yuan, down 4% year-on-year; operating profit of 135 billion yuan, down 2% year-on-year [3] - Refining Division: Revenue of 3,740 billion yuan, down 7% year-on-year; operating loss of 5 billion yuan [3] - Marketing and Distribution Division: Revenue of 4,187 billion yuan, down 8% year-on-year; operating profit of 26 billion yuan, down 65% year-on-year [3] - Chemical Division: Revenue of 1,283 billion yuan, up 0.31% year-on-year; operating loss of 17 billion yuan [3] Capital Expenditure Summary - In the first three quarters of 2024, total capital expenditure was 863.50 billion yuan, with significant investments in exploration and development [5] - The exploration and development segment accounted for 507.65 billion yuan of the capital expenditure, focusing on oil and gas production capacity [5] Share Buyback and Stake Increase - As of September 30, 2024, the company has repurchased 7,490,800 A-shares and 111,192,000 H-shares, indicating a commitment to enhancing shareholder value [6][9]