COSL(601808) 光大证券·2024-08-28 06:03Investment 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 internationalization strategy has been effective, with new contracts signed in overseas markets, particularly in Southeast Asia [11] - The company's drilling workload has remained stable, with a significant increase in technical service revenue, growing by 20.8% YoY in H1 2024 [8] - The company has re-locked contracts for two drilling platforms, ensuring workload stability in the oilfield services market [12] Financial Performance - H1 2024 operating revenue: 22.5 billion CNY, up 19.37% YoY [5] - H1 2024 net profit attributable to shareholders: 1.6 billion CNY, up 18.92% YoY [5] - Q2 2024 operating revenue: 12.4 billion CNY, up 18.85% YoY and 22% QoQ [5] - Q2 2024 net profit attributable to shareholders: 957 million CNY, up 2.34% YoY and 50.57% QoQ [5] - H1 2024 operating cash flow: 1.715 billion CNY, up 49% YoY [7] - H1 2024 ROE: 7.6%, up 0.8 pct YoY [7] Business Segments - Drilling services revenue in H1 2024: 6.4 billion CNY, up 18.2% YoY [8] - Technical services revenue in H1 2024: 12.8 billion CNY, up 20.8% YoY [8] - 2D seismic acquisition: 11,174 km, down 13.6% YoY [8] - 3D seismic acquisition: 16,370 km², up 189.5% YoY [8] Strategic Initiatives - The company is focusing on technology-driven development and improving operational efficiency [9] - It has established a "North-South Dual Center" for rotary steering and logging-while-drilling production lines [9] - The company is enhancing its digital capabilities and optimizing resource allocation through four product line operation centers [10] Market 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 sectors [12] - The company is well-positioned to benefit from the recovery in the oilfield services market, with a strong pipeline of contracts and a focus on high-quality development [12] Valuation and Forecast - Forecasted net profit attributable to shareholders for 2024-2026: 3.916 billion CNY, 4.828 billion CNY, and 5.657 billion CNY, respectively [13] - Forecasted EPS for 2024-2026: 0.82 CNY, 1.01 CNY, and 1.19 CNY, respectively [13]