Sinopec Corp.(600028) 国泰君安·2024-05-07 08:02Investment Rating - The report maintains a "Buy" rating for Sinopec (600028) with an updated target price of 8.13 CNY, up from the previous 8.00 CNY [2][4]. Core Views - The company's performance for 2023 and Q1 2024 meets expectations, with a reduction in losses in the chemical segment and cost-cutting measures in upstream exploration [2]. - The company achieved a revenue of 3,212.2 billion CNY in 2023, a year-on-year decrease of 3.2%, and a net profit of 60.5 billion CNY, down 9.9% year-on-year. For Q1 2024, revenue was 790 billion CNY, a slight decrease of 0.2% year-on-year, with a net profit of 18.2 billion CNY, down 7.8% year-on-year [2][3]. - The report highlights a significant capital expenditure plan of 173 billion CNY for 2024, aimed at supporting future growth in oil and gas storage, refining structure adjustments, and high-end materials [2][3]. Financial Summary - Revenue for 2023 was 3,212,215 million CNY, with a projected revenue of 3,165,507 million CNY for 2024, reflecting a decrease of 1% [3]. - The operating profit (EBIT) for 2023 was 99,936 million CNY, with an expected increase to 122,770 million CNY in 2024, representing a growth of 23% [3]. - The net profit attributable to shareholders for 2023 was 60,463 million CNY, with projections of 78,266 million CNY for 2024, indicating a growth of 29% [3]. - The earnings per share (EPS) for 2023 was 0.50 CNY, with forecasts of 0.64 CNY for 2024 and 0.69 CNY for 2025 [3]. Dividend Policy - The company is expected to distribute a cash dividend of 0.345 CNY per share for 2023, with a payout ratio of approximately 75%, resulting in a dividend yield of nearly 9% [2]. Market Data - The current stock price is 6.32 CNY, with a market capitalization of 769 billion CNY [5]. - The stock has traded within a range of 5.24 to 6.89 CNY over the past 52 weeks [5]. Valuation Metrics - The report maintains a PE ratio of 12.73 for 2023, with a projected PE of 9.83 for 2024, indicating a favorable valuation compared to peers [3][9]. - The dividend yield is projected to increase from 5.5% in 2023 to 7.1% in 2024 [3]. Industry Context - Sinopec operates in the integrated oil and petrochemical sector, focusing on oil and gas exploration, refining, and chemical production, positioning itself as one of the largest integrated energy and chemical companies in China [2][7].