ZPEC(SH:603619) Xinda Securities·2025-04-25 00:48Investment Rating - The investment rating for Zhongman Petroleum (603619.SH) is "Buy" [1] Core Views - The company's 2024 performance was impacted by foreign exchange losses, resulting in lower-than-expected annual results. However, future overseas production is anticipated to remain promising [1][4] - In 2024, the company achieved a revenue of 4.135 billion yuan, an increase of 11% year-on-year, while the net profit attributable to shareholders decreased by 10.58% to 726 million yuan [1][2] - The company successfully acquired development rights for oil and gas blocks in Iraq, which are expected to contribute significantly to future revenue growth [4] Financial Summary - In 2024, the company's gross profit margin was 46%, up by 0.27 percentage points year-on-year. The gross profit margins for drilling equipment, drilling services, oil exploration and development, and trading were 11.42%, 8.73%, 73.45%, and 69.2%, respectively [4] - The average selling price of crude oil for the company in 2024 was $60.23 per barrel, a decrease of $5.43 compared to the previous year, while the average Brent crude oil price was $79.86 per barrel, down by $2.32 [4] - The company’s net profit margin fell by 4.09 percentage points to 17.91%, primarily due to low net profits in Q4, which were affected by expenses related to dry wells and foreign exchange losses totaling 183 million yuan [4] - The company’s projected net profits for 2025-2027 are 885 million, 1.147 billion, and 1.656 billion yuan, with year-on-year growth rates of 22%, 29.5%, and 44.5%, respectively [5][6]