一季度公司经营稳健，增储上产与降本增效持续推进

Investment Rating - The investment rating for Sinopec (600028.SH) is "Buy," consistent with the previous rating of "Buy" [1]. Core Views - The report highlights that Sinopec's operations remain stable in Q1 2024, with significant achievements in increasing reserves and production while reducing costs and improving efficiency [3]. - The average Brent crude oil price in Q1 2024 was $81 per barrel, showing a decline of approximately 1% year-on-year and quarter-on-quarter [3]. - The upstream segment achieved an operating profit of 12.706 billion yuan, a year-on-year increase of 11%, while the refining segment's profit decreased by 35% [3]. - The report anticipates a net profit attributable to shareholders of 80.582 billion yuan in 2024, with a growth rate of 33.3% [5]. Summary by Sections Financial Performance - In Q1 2024, Sinopec reported operating revenue of 789.967 billion yuan, a year-on-year decrease of 0.17% but a quarter-on-quarter increase of 6.43% [2]. - The net profit attributable to shareholders was 18.316 billion yuan, down 8.88% year-on-year but up 144.31% quarter-on-quarter [2]. - The basic earnings per share (EPS) was 0.15 yuan, reflecting a year-on-year decrease of 8.93% but a quarter-on-quarter increase of 150% [2]. Operational Highlights - The upstream exploration and development segment made significant progress in increasing reserves and production, with a total oil and gas equivalent output of 18.12 million tons, a year-on-year increase of 3.4% [3]. - The crude oil production reached 7.036 million barrels, up 1.3% year-on-year, while natural gas production was 9.9 billion cubic meters, up 6.0% [3]. - The refining segment processed 6.33 million tons of crude oil, a year-on-year increase of 1.7%, and produced 3.883 million tons of refined oil, up 4.1% [4]. Capital Expenditure - Total capital expenditure was 20.5 billion yuan, a decrease of 2.9 billion yuan year-on-year [5]. - The capital expenditure focus remains on upstream reserve and production enhancement as well as refining and chemical efficiency improvements [5]. Profit Forecast - The forecasted net profits for 2024, 2025, and 2026 are 80.582 billion yuan, 90.334 billion yuan, and 101.258 billion yuan, respectively, with corresponding EPS of 0.66 yuan, 0.74 yuan, and 0.83 yuan [5].