The company's net income in the first half of 2024 is flat year-on-year, but the company's new order growth performance is strong during the period, increasing by 33% year-on-year, and is expected to exceed the annual target.
According to the report by Zhong Yin Guo Ji, Sinopec SEG (02386) is reiterated a buy with a target price of HKD 7.11. The company may be included in the Hong Kong Stock Connect again in early September, which is expected to be a short-term catalyst for its stock price.
Due to the absence of foreign exchange gains and the increase in R&D expenses to offset the growth in gross profit, the company's net income in the first half of 2024 remained flat year-on-year. However, the bank pointed out that the new order growth of Sinopec SEG during the period has been strong, with a year-on-year increase of 33%, and is expected to exceed the annual target. At the same time, the dividend payout ratio has been raised to 50%, which also reflects management's confidence in the company's prospects.
