Jinwu Financial News | According to Dongwu Securities Research, under international standards, Sinopec (00386) achieved operating income of 3212.4 billion yuan (-3% YoY) and net profit to mother of 58.3 billion yuan (-12% YoY) in 2023.
According to the bank, 2023Q4, the company achieved operating income of 742.5 billion yuan (-14% YoY, -15% YoY) and net profit of 4.3 billion yuan (YoY -52%, -76% YoY). In 2023, the company's taxes payable were 40 billion yuan (+41% year over year), mainly affected by accrued mining concession proceeds (7.4 billion yuan) and increased circulation taxes such as consumption tax; achieving investment income of 5.8 billion yuan (-60% year over year), mainly due to the large return from the sale of Shanghai Secco's shares in 2022, while the chemical market was sluggish in 2023, and the efficiency of joint ventures and joint ventures declined. Overall, excluding the one-time impact, the company's business situation is improving.
The bank said that according to the progress of the company's strategy to stabilize oil and increase gas, as well as the recovery in demand for refined oil products and the widening of overseas price spreads, the bank expects the company's net profit to be 641, 671, and 67.4 billion yuan respectively from 2024 to 2026 (Note: The profit forecast for 2024-2026 is the predicted value of Sinopec A shares, and there are differences in accounting standards for A/H shares, resulting in a slight difference in the forecast caliber.) According to the closing price on April 15, 2024, the corresponding H share PE is 8.68, 8.29, and 8.26 times, respectively, and the corresponding H share PB is 0.56, 0.54, and 0.53 times, respectively. The company has remarkable profitability and excellent cost control. For the first time, coverage was given a “buy” rating.