SOFE(000852) AVIC Securities·2024-11-03 02:30Investment Rating - The investment rating for the company is "Buy" [3]. Core Views - The company is a leading enterprise in oil and gas equipment under Sinopec, actively expanding into new energy equipment and other new businesses [3]. - The company has a comprehensive product range and strong R&D capabilities in oil and gas and new energy equipment, benefiting from domestic oil and gas reserve and production increase actions, leading to steady revenue and rapid net profit growth [3][10]. - The company is expected to benefit from the rising demand for oil and gas equipment driven by domestic capital expenditure in the oil and gas sector [3][16]. Summary by Sections 1. Leading Oil and Gas Equipment Enterprise - The company specializes in high-end equipment R&D and manufacturing for oil and gas extraction, with a focus on drilling, completion, and hydrogen production equipment [10][25]. - It has established a robust marketing system and has service stations in all domestic oil fields, enhancing its market presence [10][25]. 2. Rising Demand in Oil and Gas Equipment and Hydrogen Industry - Domestic oil and gas demand continues to grow, with a high reliance on imports, leading to increased capital expenditure in the sector [16]. - The company has a strong market position with a high market share in the hydraulic fracturing equipment sector, benefiting from high entry barriers and customer loyalty [22][24]. 3. Profit Forecast - The company is projected to achieve net profits of 140 million, 230 million, and 310 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.15, 0.24, and 0.33 yuan [3][13]. - The expected growth rates for revenue and net profit indicate a positive outlook for the company's financial performance [13][16]. 4. Financial Data and Valuation - The company reported revenues of 8398.01 million yuan in 2023, with a projected growth rate of 6.95% for 2024 [13]. - The net profit for 2023 was 91.96 million yuan, with a significant growth rate of 78.29% compared to the previous year [13]. - The company maintains a healthy financial position with a debt-to-asset ratio of 68.55% and a return on equity of 2.74% [3][13].