COOEC(SH:600583) Tianfeng Securities·2024-08-19 07:00Investment Rating - The report maintains a "Buy" rating for the company, with expected earnings per share (EPS) of 0.45, 0.55, and 0.64 for the years 2024, 2025, and 2026 respectively, corresponding to price-to-earnings (P/E) ratios of 12.2, 9.8, and 8.5 times [3][5]. Core Insights - The company's revenue for H1 2024 reached 13.4 billion yuan, a year-on-year decrease of 7%, primarily due to new overseas projects being in the startup phase. However, the net profit attributable to shareholders increased by 21.7% year-on-year to 1.2 billion yuan [1]. - The net profit margin has shown continuous improvement, with Q2 2024 net profit margin at 9.59%, up from 7% in the same period last year, reflecting significant cost reduction and efficiency improvements [1]. - The company is focusing on high-margin overseas markets, with overseas oil and gas orders accounting for 40% of new contracts signed in H1 2024, an increase of 1.2 percentage points year-on-year [3]. Financial Performance Summary - For H1 2024, the company reported a revenue of 13.4 billion yuan, a decrease of 7% year-on-year, while the net profit attributable to shareholders was 1.2 billion yuan, an increase of 21.7% [1]. - The company signed new contracts worth 12.5 billion yuan in H1 2024, a decrease of 30% year-on-year, with overseas orders contributing 5 billion yuan, representing a 28% decline [3]. - The total order backlog stands at approximately 38.8 billion yuan, providing strong support for the company's ongoing operations [3]. Operational Highlights - The company completed a total of 271,300 structural tons of steel processing in H1 2024, reflecting a year-on-year increase of 16% [2]. - The company installed 22 offshore jackets and 9 blocks in H1 2024, with a notable increase in offshore installations compared to the previous year [2]. - The company plans to increase its investment in international subsidiaries to enhance its bidding and operational capabilities in overseas markets [3].