Sinopec Corp.(600028) 海通证券·2024-04-29 05:02Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The report highlights stable performance and a high dividend payout ratio, with a projected EPS of 0.60, 0.61, and 0.62 for 2024-2026 [5][20] - The company has shown a significant improvement in net profit on a quarter-on-quarter basis, with a 144.3% increase in Q1 2024 compared to the previous quarter [4][7] Summary by Sections Financial Performance - In Q1 2024, the company achieved operating revenue of 789.97 billion yuan, a slight decrease of 0.2% year-on-year, and a net profit attributable to shareholders of 18.316 billion yuan, down 8.9% year-on-year but up 144.3% quarter-on-quarter [4][7] - The average Brent oil price for the first quarter was 81.88 USD/barrel, which is relatively stable and above 80 USD/barrel [8][11] Business Segments - Exploration and Production: The exploration and production segment maintained stable revenue of 80.615 billion yuan, with operating profit increasing by 9.0% year-on-year and 142.1% quarter-on-quarter [11] - Refining: The refining segment generated revenue of 375.075 billion yuan, up 1.8% year-on-year, with a significant quarter-on-quarter profit increase of 324.0% [14] - Chemicals: The chemicals segment reported revenue of 125.36 billion yuan, a year-on-year increase of 3.4%, but incurred an operating loss of 1.564 billion yuan, although this was an improvement from the previous quarter [17] Earnings Forecast and Valuation - The expected EPS for 2024-2026 is projected at 0.60, 0.61, and 0.62 yuan, with a book value per share (BPS) of 6.93 yuan for 2024 [20] - The report suggests a reasonable valuation range of 6.93 to 7.62 yuan based on a price-to-book (PB) ratio of 1.0-1.1 times and a price-to-earnings (PE) ratio of 12-13 times for 2024 [20]