ZPEC(603619) Changjiang Securities·2025-05-07 14:16Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported significant growth in Q1 2025, with operating revenue reaching 943 million yuan, a year-on-year increase of 16.90% and a quarter-on-quarter decrease of 12.96%. The net profit attributable to shareholders was 230 million yuan, up 32.95% year-on-year and up 300.73% quarter-on-quarter [2][6]. - The company’s oil production increased steadily, with Q1 2025 crude oil production at 218,800 tons, a year-on-year increase of 10.62%. The total oil and gas equivalent production was 277,200 tons, up 28.51% year-on-year [12]. - The company has rich oil reserves, with significant new geological reserves reported, indicating promising future growth potential. The EBN and MF blocks in Iraq have substantial oil reserves, with EBN block estimated at 1.2365 billion barrels and MF block at 281.3 million barrels [12]. Financial Performance - In Q1 2025, the company achieved a net cash flow from operating activities of 215 million yuan, a year-on-year increase of 45.72% [2][6]. - Basic earnings per share for Q1 2025 were 0.50 yuan, reflecting a year-on-year growth of 16.28% [2][6]. - The company forecasts net profits for 2025 to be 840 million yuan, with corresponding price-to-earnings ratios of 8.8X, 5.9X, and 5.1X for 2025, 2026, and 2027 respectively [12].