Sinopec Corp.(600028) 光大证券·2025-01-20 02:02Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of Sinopec, with current prices at 6.22 CNY and 4.29 HKD respectively [1]. Core Insights - Sinopec aims to focus on high-quality development and contribute to China's modernization, emphasizing the importance of completing the "14th Five-Year Plan" and laying a solid foundation for the "15th Five-Year Plan" [5][7]. - The company plans to enhance its core business, explore new growth areas, expand into international markets, and promote integration to maximize efficiency [5][9]. - The report highlights the expected improvement in profitability due to a favorable oil price environment and the company's strategic investments in new energy and materials [10]. Summary by Sections Company Overview - Sinopec held its 2025 work meeting on January 16, 2025, summarizing 2024's achievements and outlining key tasks for 2025 [4]. Strategic Goals - The company aims to strengthen its core operations, develop new growth drivers, expand internationally, and enhance integration for better efficiency [5][9]. - The focus will be on quality development, operational efficiency, and fulfilling national energy security responsibilities [6]. Financial Performance - The report projects Sinopec's net profit for 2024-2026 to be 571 billion CNY, 611 billion CNY, and 655 billion CNY respectively, with corresponding EPS of 0.47 CNY, 0.50 CNY, and 0.54 CNY [10]. - Revenue is expected to stabilize with slight growth in 2025 and 2026, reflecting a recovery in oil demand and the company's strategic initiatives [11]. Market Position - Sinopec is positioned to benefit from the ongoing transition in the energy sector, focusing on optimizing its product offerings and enhancing its competitive edge [9][10]. - The company is actively pursuing opportunities in the new energy sector, which is anticipated to contribute positively to its long-term growth [10].