BOMESC(SH:603727) EBSCN·2024-07-05 00:01Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [12][15]. Core Insights - The international offshore oil service engineering sector is experiencing a robust recovery, driven by increased capital expenditures from oil companies due to high oil prices. The company is well-positioned to benefit from this trend by actively participating in major project bids globally [2][11]. - The company is expected to achieve a net profit of 58-68 million yuan in the first half of 2024, marking a significant turnaround from losses in the previous year [3][12]. - Key projects, such as the UARU FPSO project, are progressing ahead of schedule, contributing to improved revenue and profitability for the company [11][12]. Summary by Sections Financial Performance - The company forecasts a substantial increase in revenue and profitability for 2024, with net profits projected at 119 million yuan in 2024, a significant recovery from a loss of 75 million yuan in 2023 [22]. - The expected earnings per share (EPS) for 2024 is 0.42 yuan, with further increases anticipated in subsequent years [12][22]. Market Outlook - Global upstream exploration spending is projected to reach 581 billion USD in 2024, a 2.1% increase year-on-year, with offshore capital expenditures expected to grow by 13.6% to 201 billion USD [2]. - The company has secured multiple large contracts, including a 152 million USD contract for the ExxonMobil FPSO project, enhancing its position in the high-end market [18]. Valuation Adjustments - The profit forecasts for 2024-2026 have been revised upward, with net profits expected to be 1.19 billion yuan in 2024, 2.62 billion yuan in 2025, and 3.86 billion yuan in 2026, reflecting a strong recovery in the offshore oil service market [12][22].