CITIC Securities: Maintain "Buy" rating on Sinopec, high dividends highlight long-term investment value

The research report from Guotai Junan Securities pointed out that the performance of Sinopec is under short-term pressure due to reduced inventory profits, but the high dividends highlight its long-term investment value. By 2025, the company will increase its exploration efforts in shale oil, ultra-deep oil and gas, with exploration costs totaling 11.4 billion yuan, a year-on-year increase of 21.1%. The company has made significant breakthroughs in exploration of shale oil in the Bohai Bay Basin, new areas in the Sichuan Basin, offshore natural gas, etc., and upstream reserves and production continue to grow. The total oil and gas production for the year reached 525.28 million barrels of oil equivalent, a year-on-year increase of 1.9%, including domestic crude oil production of 255.75 million barrels; natural gas production of 1.4566 trillion cubic feet, a year-on-year increase of 4.0%, setting a new historical high in oil and gas production. The company has optimized and adjusted its refining and chemical operations, strengthened cost control, and enhanced shareholder returns, demonstrating its long-term investment value. Appreciating the company's long-term development advantages in the industry's existing competitive landscape, as well as the performance elasticity brought by the future prosperity of the refining and chemical industry, combined with the company's high shareholder returns, the company's "buy" rating is maintained.