Financial Performance - CNOOC Limited reported a revenue of RMB 106,854 million for Q1 2025, a decrease of 4.1% compared to RMB 111,468 million in the same period last year[6]. - The net profit attributable to shareholders was RMB 36,563 million, down 7.9% from RMB 39,719 million year-on-year[6]. - The cash flow from operating activities was RMB 57,274 million, reflecting a decline of 4.5% from RMB 59,978 million in the previous year[6]. - The company's oil and gas sales revenue for Q1 2025 was approximately RMB 88.27 billion, a decrease of 1.9% year-on-year due to falling oil prices[15]. - Operating profit for Q1 2025 was RMB 49,927 million, down 5.7% from RMB 52,597 million in Q1 2024[21]. - Net profit for Q1 2025 was RMB 36,601 million, a decline of 7.1% from RMB 39,726 million in Q1 2024[22]. Production and Sales - In Q1 2025, the company's total net production reached 188.8 million barrels of oil equivalent, an increase of 4.8% year-on-year[14]. - The company's net production in China was 130.8 million barrels of oil equivalent, up 6.2% year-on-year, primarily due to contributions from the Bozhong 19-6 oil and gas field[14]. - Natural gas sales increased by 15.8% to RMB 13,635 million, compared to RMB 11,774 million in the previous year[10]. Pricing and Costs - The average realized price for crude oil was USD 72.65 per barrel, a decrease of 7.7% from USD 78.75 per barrel in the same quarter last year[10]. - The average realized gas price was $7.78 per thousand cubic feet, an increase of 1.2% year-on-year[15]. - The Brent crude oil futures average price for Q1 2025 was $74.98 per barrel, down 8.3% year-on-year[14]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 1,102,706 million, representing a 4.4% increase from RMB 1,056,281 million at the end of the previous year[6]. - Total liabilities as of March 31, 2025, amounted to RMB 316,922 million, up from RMB 306,845 million at the end of 2024[20]. - The total equity attributable to shareholders of the parent company increased to RMB 783,824 million as of March 31, 2025, from RMB 747,548 million at the end of 2024[20]. Cash Flow and Financing - Cash flow from investing activities for Q1 2025 was negative RMB 35,408 million, compared to negative RMB 33,884 million in Q1 2024[24]. - The company reported a basic earnings per share of RMB 0.77 for Q1 2025, down from RMB 0.84 in Q1 2024[23]. - Cash inflow from borrowings decreased significantly to $9 million in Q1 2025 from $1,331 million in Q1 2024, representing a decline of 99.32%[25]. - Total cash inflow from financing activities was $42 million in Q1 2025, down from $1,352 million in Q1 2024, a decrease of 96.91%[25]. - The net cash flow from financing activities was negative $1,794 million in Q1 2025, worsening from negative $1,156 million in Q1 2024[25]. Capital Expenditures and Discoveries - Capital expenditures totaled RMB 27,713 million, down 4.5% from RMB 29,014 million in the same period last year[10]. - The company made two new discoveries and successfully evaluated 14 oil and gas structures during the quarter[14]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 233,407[12]. - The largest shareholder, China National Offshore Oil Corporation (BVI), holds 60.54% of the shares[12]. Leadership and Future Outlook - The company is set to implement new accounting standards starting in 2025, which may affect financial reporting[26]. - The board of directors includes key executives such as CEO Zhou Xinhui and CFO Mu Xiuping, indicating strong leadership continuity[26].

Core Viewpoint - The marine engineering equipment manufacturing industry in China is experiencing high-quality development, significantly supporting the marine economy and the construction of a maritime power. The industry is projected to achieve a value-added of 103.2 billion yuan in 2024, representing a growth of 9.1% compared to 2023 [1][20]. Group 1: Industry Overview - The marine oil and gas engineering equipment sector is crucial for the development of marine resources, with advancements in technology leading to the establishment of various standards and series of equipment [1][4]. - Recent achievements include the construction of significant marine equipment such as the FPSO "Ocean Oil 119" and the semi-submersible production and storage platform "Deep Sea No. 1" [1][20]. - The utilization rates of marine drilling equipment in China are notably higher than the global average, with mobile drilling equipment at 93% [1][20]. Group 2: Industry Development History - The marine oil and gas engineering equipment industry in China began in the 1960s, initially relying on imported technology and equipment. Over the decades, the industry has evolved, with significant advancements in domestic capabilities [6]. - The introduction of policies supporting equipment localization has led to breakthroughs in key technologies, particularly in deepwater and ultra-deepwater equipment [6][8]. Group 3: Industry Policies - The Chinese government has implemented various policies to support the marine engineering equipment sector, including plans to enhance the production capacity of marine engineering products and accelerate the development of new equipment [8][10]. - The Ministry of Industry and Information Technology has also promoted the integration of 5G technology in marine applications, enhancing operational efficiency [8][10]. Group 4: Industry Chain - The marine oil and gas engineering equipment industry chain consists of upstream design and raw material supply, midstream manufacturing, and downstream service provision to oil service companies and operators [11]. Group 5: Market Trends - The industry is expected to see continued demand growth, particularly in deepwater and unconventional resource development, driven by technological advancements and the push for sustainable practices [29][30][32]. - The focus on green technology and low-carbon solutions is becoming increasingly important, with a shift towards renewable energy equipment and environmentally friendly materials [30][32]. Group 6: Key Companies - Major players in the industry include CNOOC Engineering, CNOOC Services, and China Shipbuilding Industry Corporation, which dominate various segments of the marine oil and gas exploration and production equipment market [22][23]. - CNOOC Engineering is recognized as the largest marine oil and gas engineering contractor in the Asia-Pacific region, while CNOOC Services is a leading offshore drilling contractor [25][27].

Investment Rating - The report maintains an "Overweight" rating for the chemical industry, specifically for the petrochemical and transportation sectors [4]. Core Views - The macroeconomic recovery in China, driven by various government measures to stabilize employment and promote economic growth, is expected to positively impact the chemical industry, leading to a rebound in profitability for chemical products in 2025 [1][2]. - The report anticipates a recovery in cyclical sectors such as refining, MDI (Methylene Diphenyl Diisocyanate), agricultural chemicals, and vitamins, with overall chemical prices expected to rise from their current lows [2]. Summary by Sections 1. Industry Overview - The Chinese government has introduced several measures to stabilize employment and promote economic growth, which are expected to support the chemical industry [1]. - In Q1 2025, China's GDP grew by 5.4% year-on-year, surpassing the growth rate of 5% for the entire year of 2024 [1]. 2. Chemical Product Price Trends - Refining: Lower energy prices are expected to ease cost pressures for downstream refining companies, with a positive outlook for large refining and coal chemical enterprises [2]. - MDI: Major companies have increased MDI prices by €175 per ton in Europe and $100-$300 per ton in other regions, although the average industry price continues to decline [2]. - Agricultural Chemicals: Potash prices have rebounded due to seasonal demand and tariffs, while phosphate prices are also showing signs of recovery [2]. - Vitamins: Supply for certain vitamins is shifting towards China, with prices for Vitamin D3 rising significantly [2]. 3. Investment Recommendations - The report suggests focusing on undervalued, high-dividend companies in the oil sector, including China National Petroleum, Sinopec, and CNOOC [3]. - It also highlights opportunities in domestic material companies benefiting from the trend of domestic substitution, as well as in the agricultural chemicals and private refining sectors [3]. - Companies in the vitamin and methionine sectors are also recommended for investment [3].

Market Overview - The Shanghai Composite Index fell by 0.20% on April 28, with five sectors rising, led by banking and steel, which increased by 0.98% and 0.53% respectively [1] - The real estate and comprehensive sectors experienced the largest declines, down by 3.66% and 2.52% respectively [1] - The oil and petrochemical sector saw a slight decrease of 0.03% [1] Capital Flow Analysis - The main capital outflow from the two markets totaled 29.894 billion yuan, with only two sectors seeing net inflows: steel with 200 million yuan and oil and petrochemicals with 66.93 million yuan [1] - The electronics sector had the largest net outflow, totaling 3.104 billion yuan, followed by the automotive sector with a net outflow of 2.516 billion yuan [1] Oil and Petrochemical Sector Details - Within the oil and petrochemical sector, there are 48 stocks, with 9 rising and 36 falling, including one hitting the daily limit down [2] - The top net inflow stocks in this sector included China National Offshore Oil Corporation (CNOOC) with 53.071 million yuan, China Petroleum & Chemical Corporation (Sinopec) with 50.902 million yuan, and Huajin Chemical with 44.7347 million yuan [2] - The stocks with the largest net outflows included ST Xinchao with 39.0339 million yuan, Intercontinental Oil and Gas with 22.5732 million yuan, and Bohai Chemical with 17.033 million yuan [2][3]

Core Points - The China Securities Index Hong Kong 300 Value Index (HK300V) reported a decline of 3.40% over the past month, an increase of 4.61% over the past three months, and a year-to-date increase of 3.37% [1] - The index is composed of four indices: the China Securities Index Hong Kong 300 Growth Index, the China Securities Index Hong Kong 300 Value Index, the China Securities Index Hong Kong 300 Relative Growth Index, and the China Securities Index Hong Kong 300 Relative Value Index [1] - The top ten holdings of the HK300V index include HSBC Holdings (11.0%), China Construction Bank (10.45%), China Mobile (7.86%), Industrial and Commercial Bank of China (7.47%), Bank of China (5.71%), Ping An Insurance (5.39%), CNOOC (4.73%), China Merchants Bank (3.2%), Agricultural Bank of China (2.28%), and Bank of China Hong Kong (2.03%) [1] Industry Breakdown - The financial sector constitutes 59.06% of the index holdings, followed by communication services at 11.70%, energy at 10.51%, real estate at 8.19%, and industrials at 3.65% [2] - The index undergoes adjustments every six months, with sample adjustments implemented on the next trading day after the second Friday of June and December [2] - The weight factors are adjusted in accordance with the sample adjustments, and temporary adjustments occur when the underlying index samples are modified [2]

Core Viewpoint - China National Offshore Oil Corporation (CNOOC) has achieved a record high oil and gas production of over 3.2 million tons in the first quarter of this year from the Liaodong Bay oilfield group, marking a significant year-on-year increase [1] Group 1: Production and Infrastructure - The Liaodong Bay oilfield group, located in the northern Bohai Sea, has produced over 240 million tons of oil and gas since its first platform was launched in 1992, with a daily production equivalent exceeding 36,000 tons [3] - The oilfield group consists of 19 producing oil and gas fields, over 80 offshore platforms, 3 land terminals, and more than 1,500 production wells, maintaining an annual production of over 10 million tons for 15 consecutive years [3] Group 2: Technological Advancements - CNOOC has overcome various technical challenges in the region, including the development of conventional heavy oil fields and complex geological structures, achieving several "China firsts" in offshore oil development technology [3] - The company has pioneered integrated high-temperature injection and extraction technology for ultra-heavy oil and efficient development techniques for multi-layer heavy oil, leading to the successful production of China's first large-scale ultra-heavy oil field and multi-layer heavy oil field [4] Group 3: Future Development Strategy - CNOOC aims to stabilize production from old oilfields while accelerating the development of new oilfields and enhancing heavy oil extraction, with a target to increase daily crude oil production to over 2,200 tons from the Liaodong Bay oilfield group by 2024 [4] - The company is implementing the largest secondary adjustment project in China's offshore oil sector to boost production from aging oilfields, ensuring a solid foundation for stable production and enhancing energy supply capabilities [4]

Core Insights - On April 25, Sunac China made its first appearance on the Hong Kong Stock Connect active trading list in nearly a month [2] - The total trading volume of active stocks on the Hong Kong Stock Connect reached HKD 32.19 billion, accounting for 37.35% of the day's total trading amount, with a net sell amount of HKD 3.74 billion [2] - Tencent Holdings led the trading volume with HKD 5.39 billion, followed by Xiaomi Group-W and Alibaba-W with HKD 5.11 billion and HKD 4.79 billion respectively [2] Trading Activity Summary - The active stocks on April 25 included Tencent Holdings, Xiaomi Group-W, Alibaba-W, and others, with Alibaba-W and Tencent Holdings being the most frequently listed stocks in the past month, each appearing 20 times [2] - Sunac China recorded a trading volume of HKD 2.46 billion and a net buying amount of HKD 0.17 billion, despite a closing price drop of 6.63% on that day [2] Individual Stock Performance - Tencent Holdings: Trading amount of HKD 5.39 billion, net sell of HKD 1.49 billion, 20 appearances in the last month, closing price at HKD 478.20, daily change of +1.53% [2] - Xiaomi Group-W: Trading amount of HKD 5.11 billion, net sell of HKD 0.17 billion, 20 appearances in the last month, closing price at HKD 47.70, daily change of -1.04% [2] - Alibaba-W: Trading amount of HKD 4.79 billion, net sell of HKD 0.89 billion, 20 appearances in the last month, closing price at HKD 115.60, daily change of +1.58% [2] - Sunac China: Trading amount of HKD 2.46 billion, net buy of HKD 0.17 billion, first appearance in nearly a month, closing price drop of 6.63% [2]

Summary of Key Points Core Viewpoint - On April 25, the Hang Seng Index rose by 0.32%, with southbound funds recording a total transaction amount of HKD 861.88 billion, resulting in a net sell of HKD 70.19 billion [1]. Southbound Fund Transactions - The total transaction amount for southbound funds was HKD 861.88 billion, with buy transactions at HKD 395.84 billion and sell transactions at HKD 466.03 billion, leading to a net sell of HKD 70.19 billion [1]. - The breakdown of transactions showed that the Hong Kong Stock Connect (Shenzhen) had a total transaction amount of HKD 341.67 billion, with net selling of HKD 48.61 billion, while the Hong Kong Stock Connect (Shanghai) had a total transaction amount of HKD 520.21 billion, with net selling of HKD 21.59 billion [1]. Active Stocks - Tencent Holdings had the highest transaction amount among active stocks, totaling HKD 53.89 billion, followed by Xiaomi Group-W at HKD 51.11 billion and Alibaba-W at HKD 47.94 billion [1]. - The stocks with the highest net buying included Meituan-W with a net buying amount of HKD 7.45 billion, followed by Sunac China with HKD 1.70 billion and Chifeng Jilong Gold Mining with HKD 22.19 million [1]. - Conversely, Tencent Holdings experienced the largest net selling at HKD 14.89 billion, while Alibaba-W and Pop Mart faced net selling of HKD 8.95 billion and HKD 6.52 billion, respectively [1]. Continuous Net Buying and Selling - Two stocks, Chifeng Jilong Gold Mining and Meituan-W, saw continuous net buying for 7 days and 3 days, respectively, with Meituan-W having the highest net buying amount of HKD 26.15 billion [2]. - Four stocks experienced continuous net selling, with Xiaomi Group-W, China Mobile, and Tencent Holdings leading in net selling amounts of HKD 48.57 billion, HKD 22.89 billion, and HKD 20.92 billion, respectively [2].

Core Viewpoint - The article discusses the recent quarterly report of E Fund's star fund manager Zhang Kun, highlighting his portfolio adjustments and investment philosophy amidst changing market conditions [1][2]. Group 1: Fund Performance and Adjustments - As of the end of Q1 2025, Zhang Kun's managed funds have a total scale exceeding 60.82 billion yuan, an increase of 1.841 billion yuan from the end of the previous year [2]. - The largest fund, E Fund Blue Chip Selection, saw its scale grow by over 1.4 billion yuan to 38.908 billion yuan, while E Fund Quality Selection increased by 500 million yuan to 14.169 billion yuan [2]. - All four funds experienced varying degrees of net redemptions, with E Fund Blue Chip Selection facing a net redemption of 960 million units [3]. Group 2: Portfolio Composition and Strategy - Zhang Kun maintained a high stock position, with stock holdings remaining above 94% across his funds, and a consistent allocation of around 45% in Hong Kong stocks [4]. - In Q1, he optimized the structure of his holdings, reducing exposure to internet stocks while increasing investments in logistics and tourism sectors [5]. - Major reductions were noted in holdings of Tencent Holdings, Alibaba-W, and Yanghe Brewery, with reductions around 30% for Alibaba and Yanghe, and over 10% for Tencent [5][6]. Group 3: Market Outlook and Investment Philosophy - Zhang Kun emphasized that the stock market's returns are fundamentally linked to corporate earnings, which he believes will not remain below the return on equity (ROE) levels for an extended period [7]. - He noted improvements in competitive landscapes across certain industries and highlighted the importance of focusing on companies with strong business models and shareholder-friendly capital allocation [7]. - The manager expressed optimism regarding the economic impact of real estate downturns and consumer stimulus policies, suggesting that investors should concentrate on corporate performance rather than macroeconomic concerns [7].

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net selling from northbound capital, totaling 70.19 billion HKD, with notable net selling in major stocks like Tencent and Alibaba, while Meituan and Sunac China saw net buying [1][2]. Group 1: Northbound Capital Flow - Northbound capital recorded a net selling of 70.19 billion HKD, with 21.59 billion HKD from the Shanghai Stock Connect and 48.61 billion HKD from the Shenzhen Stock Connect [1]. - The stocks with the highest net buying included Meituan (03690), Sunac China (01918), and Chifeng Jilong Gold Mining (06693) [1]. - The stocks with the highest net selling included Tencent (00700), Alibaba (09988), and China Mobile (00941) [1]. Group 2: Individual Stock Performance - Meituan (03690) received a net buying of 7.45 billion HKD, supported by a report from Citigroup indicating no risk of ADR delisting and stable business income [4]. - Sunac China (01918) saw a net buying of 1.69 billion HKD, as the company is actively seeking support for its debt restructuring plan, with significant progress reported [5]. - Chifeng Jilong Gold Mining (06693) achieved a net buying of 221.9 million HKD, reporting a 29.85% increase in revenue and a 141.10% increase in net profit year-on-year [5]. Group 3: Sector-Specific Trends - Semiconductor stocks like Hua Hong Semiconductor (01347) and SMIC (00981) faced net selling of 1.79 billion HKD and 5 billion HKD, respectively, amid changes in import tariffs for certain semiconductor products [6]. - China National Offshore Oil Corporation (00883) experienced a net selling of 2.81 billion HKD, influenced by OPEC+ countries' discussions on increasing production [6]. - China Mobile (00941) had a net selling of 5.09 billion HKD, with a slight revenue growth of 0.02% in Q1, indicating a slowdown in the telecom sector [7].