COOEC(SH:600583) Tianfeng Securities·2025-08-17 13:45Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5][3]. Core Views - The company reported a 42% year-on-year increase in new orders in Q2, with a total of approximately 121 billion in new contracts for the first half of 2025, reflecting a 3.6% decrease compared to the previous year [3]. - The company's Q2 revenue was 6.2 billion, down 19.8% year-on-year, primarily due to a decline in land processing and renewable energy workload [1]. - The net profit attributable to the parent company for Q2 was 557 million, a decrease of 22.7% year-on-year, but an 18% increase when excluding the impact of a one-time consumption tax refund from the previous year [1][3]. Summary by Sections Financial Performance - The company achieved a gross profit margin that is the highest in nearly five years [1]. - The total order backlog stands at approximately 40.7 billion, providing strong support for ongoing business development [3]. - The company’s net profit forecast for 2025, 2026, and 2027 is set at 2.5 billion, 2.9 billion, and 3.1 billion respectively, with corresponding PE ratios of 10, 9, and 8 times [3]. Operational Highlights - The company has shifted its workload significantly towards high-margin offshore installation and pipeline laying services [2]. - In Q2, the company completed 79,800 tons of steel processing, a decrease of 41% year-on-year, while offshore installations included 8 jackets and 7 modules [2]. Market Position - The company operates within the oil and gas engineering sector, with a current market capitalization of approximately 25.47 billion [6]. - The stock has shown a price range between 6.40 and 4.75 in the past year, indicating volatility in market performance [6].