Economic Observation Network Sinopec Refining and Chemical Engineering (02386. HK) has disclosed its H-share repurchase arrangements, overseas project progress, and order reserves, among other related information. Multiple institutions have given it a buy rating.

Execution of Share Repurchase:
The company has passed a resolution to repurchase H shares within the next 6 months, with an amount not less than HKD 100 million and not exceeding HKD 150 million. On August 17th, 18th, and 20th, there were consecutive repurchases The pace and intensity of subsequent repurchases are worth tracking, which directly affects market sentiment and stock price support.

Settlement of overseas loss making projects:
The Marjan and Berri projects in Saudi Arabia have been completed but not yet settled, which has dragged down the performance in the first half of the year (with a loss of 57.1 million yuan in the construction division). As settlement progresses, this drag on profits is expected to gradually dissipate, and settlement progress is the key catalyst point 。

On hand order conversion:
As of the end of June 2026, the company's on hand orders reached 220.1 billion yuan, covering approximately 3.1 times the annual revenue, with sufficient order reserves Among them, 61% of the annual target has been achieved for newly signed overseas orders, including the 60 month EPC long-term agreement with Saudi Aramco and the $750 million construction contract with ADNOC Habshan Whether these orders can be smoothly converted into revenue is the core driving force for performance growth.

Middle East geopolitical risks:
The cross-strait conflict may affect the construction progress and cost of Middle Eastern owners' projects, and has a potential impact on EPC profit margins This is an uncertain factor hanging over overseas business.

Dividends and Valuation:
The company's mid-term dividend is 0.127 yuan per share, with a dividend payout ratio of approximately 49%. Based on the current stock price, the dividend payout ratio is approximately 7.5% Undervaluation (P/E ratio of about 12.8 times, P/B ratio of about 0.62 times)+high dividends are the value logic commonly emphasized by institutions 。

Currently, multiple institutions maintain a "buy/outperform industry" rating, with target prices concentrated in the range of HKD 6.6-7.69 。

The above content is based on publicly available information and does not constitute investment advice.