COSL(601808) 长江证券·2024-11-07 07:59Investment Rating - The investment rating for the company is "Buy" and it is maintained [4]. Core Views - The company reported a revenue of 33.661 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 14.08%. The net profit attributable to shareholders was 2.445 billion yuan, up 7.54% year-on-year. However, the revenue for the third quarter was 11.133 billion yuan, a growth of only 4.70%, while the net profit decreased by 8.78% year-on-year [4][5]. - The industry remains at a high level of prosperity, with improved profitability in the third quarter, although exchange rate losses impacted performance. The company's gross margin reached 18.07% in Q3 2024, an increase of 0.19 percentage points year-on-year and 0.88 percentage points quarter-on-quarter [4][6]. - The company is expected to benefit from the significant potential of offshore oil and gas resources, as well as increased capital expenditure by China National Offshore Oil Corporation (CNOOC) [6]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 33.661 billion yuan, a 14.08% increase year-on-year, and a net profit of 2.445 billion yuan, up 7.54% year-on-year. In Q3 alone, revenue was 11.133 billion yuan, growing 4.70% year-on-year, while net profit was 0.852 billion yuan, down 8.78% year-on-year [4][5]. - The gross margin improved to 18.07% in Q3 2024, reflecting ongoing enhancements in operational efficiency and cost management [4][6]. Market Conditions - The oil and gas industry is experiencing sustained high demand, driven by OPEC+ production cuts and increased upstream exploration and development investments. The overall market for oilfield services is expected to grow steadily [4][6]. - The company has secured contracts for previously suspended platforms, which mitigates the impact of adverse weather conditions on operations [5][6]. Future Outlook - The potential for offshore oil and gas resources is substantial, with deepwater exploration being a key focus area. CNOOC's capital expenditure for 2024 is projected to be between 125 billion and 135 billion yuan, indicating continued investment in offshore exploration and development [6]. - Earnings per share (EPS) forecasts for 2024-2026 are 0.80 yuan, 0.98 yuan, and 1.16 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 19.4X, 15.7X, and 13.2X based on the closing price on November 1, 2024 [6].