Gelonghui November 8th | Huaxin Securities Research Report pointed out that the downward trend in oil prices combined with the decline in the gross margin of petrochemical products has led to pressure on the performance of China Petroleum & Chemical Corporation (600028.SH). In Q3 2024, the company's net income attributable to the parent company decreased by 9.311 billion yuan year-on-year, a decrease of over 50%, impacted by the lower oil prices. The gross margin of the company's petroleum and petrochemical products has also declined, putting pressure on the Q3 performance of the company. However, thanks to measures such as the company's use of diversified raw materials, arrangement of negative-margin benefit devices to reduce load and operational shutdowns, and expansion into overseas markets, the company's chemical sector achieved full production and sales this year, with the sector's pre-tax loss before interest of 4.787 billion yuan, a decrease of 1.92 billion yuan compared to the same period last year. The chemical sector has significantly reduced losses, and with the decline in oil prices and improved demand, the chemical sector is expected to turn losses into profits. The company attaches great importance to investor returns, maintaining continuity and stability in dividends over the years. It is explicitly stated that the dividend ratio for the next three years will not be less than 65%, ensuring sustained stability in high dividends in the future. At the same time, the company has already distributed cash dividends of 0.146 yuan per share (tax included) midway through the year. A "buy" investment rating is recommended.