Gelonghui, May 20 | Changjiang Securities Research Report pointed out that the chemical industry reversed losses in natural gas and continued to improve, and China Petroleum (601857.SH)'s Q1 performance grew steadily. Against the backdrop of increased production and lower costs, the oil and gas business achieved operating profit of 42,965 billion yuan, an increase of 4.8% over the previous year, higher than the increase in oil prices during the same period. Among them, due to the narrowing of the gross profit of refined products, the refining business achieved operating profit of 6.970 billion yuan, a year-on-year decrease of 2,426 billion yuan; due to increased sales of chemical products and Guangdong Petrochemical's loss and profit increase, the operating profit of the chemical business was 1,145 billion yuan, which turned a loss into a profit, with a year-on-year increase of 2,071 billion yuan. Furthermore, sales have increased and imported gas costs have decreased, and the profitability of the natural gas sales business has increased dramatically. The company focuses on shareholder returns, and the valuation still has room for repair. Maintain a “buy” rating.