COSL(601808) EBSCN·2024-08-28 03:32Investment Rating - A-shares: Buy (maintained) with a current price of 14.36 CNY [2] - H-shares: Overweight (maintained) with a current price of 6.80 HKD [2] Core Views - The company achieved a 19% YoY increase in operating revenue and an 18.92% YoY increase in net profit attributable to shareholders in H1 2024 [5] - The company's cash flow and ROE improved significantly, with operating cash flow increasing by 49% YoY to 1.715 billion CNY and ROE reaching 7.6% [7] - The company's drilling workload remained stable, with drilling service revenue increasing by 18.2% YoY, while technical service revenue grew by 20.8% YoY [8] - The company continues to focus on technological innovation and international expansion, securing new contracts for two drilling platforms and expanding its overseas market presence [6][11] Financial Performance - In H1 2024, the company achieved operating revenue of 22.5 billion CNY, a 19.37% YoY increase, and net profit attributable to shareholders of 1.6 billion CNY, an 18.92% YoY increase [5] - In Q2 2024, the company achieved operating revenue of 12.4 billion CNY, an 18.85% YoY increase, and net profit attributable to shareholders of 957 million CNY, a 2.34% YoY increase [5] - The company's cost-to-profit ratio was 8.4%, and its asset-liability ratio decreased by 0.3 percentage points to 48.6% [7] Business Operations - The company's drilling platform operating days reached 8,961 days, with self-elevating platforms accounting for 7,038 days and semi-submersible platforms accounting for 1,923 days [8] - The company's vessel service operating days reached 32,531 days, a 19.6% YoY increase, while 3D seismic acquisition increased by 189.5% YoY to 16,370 square kilometers [8] - The company has secured contracts for two drilling platforms, with one expected to start operations in China by the end of August or early September 2024, and the other scheduled to begin operations between December 15, 2024, and January 15, 2025 [12] Strategic Focus - The company is deepening reforms and focusing on technology-driven development, with a strong emphasis on international expansion and high-quality growth [7][9] - The company has established four product line operation centers to enhance operational efficiency and has signed strategic agreements with multiple partners to strengthen its industry chain control [10] - The company continues to expand its overseas market, with 18 out of 61 drilling platforms operating internationally, and has secured new contracts for technical services in Southeast Asia [11] Industry Outlook - The global oilfield services market is expected to grow by 7.1% in 2024, driven by increased upstream investment in deepwater and unconventional oil and gas exploration [12] - The company is well-positioned to benefit from the recovery in the oilfield services market, with strong demand for its drilling and technical services [12]