CPEC(SH:600339) EBSCN·2025-08-29 03:42Investment Rating - The report maintains an "Accumulate" rating for the company [1]. Core Views - The company plans to issue A-shares to China National Petroleum Corporation (CNPC) for a total of 5.913 billion yuan, which will enhance its high-quality development through parent company synergy [4][5]. - The issuance reflects the controlling shareholder's support and confidence in the company, which will help complete "Belt and Road" projects on time and enhance international operational capabilities [6][9]. - The funds raised will be used for oil and gas storage and transportation engineering projects and to supplement working capital [5][7]. Summary by Sections Company Overview - The total share capital of the company is 5.583 billion shares, with a total market value of 20.099 billion yuan [1]. - The stock price has fluctuated between 2.78 yuan and 4.05 yuan over the past year [1]. Financial Performance - The company expects net profits for 2025, 2026, and 2027 to be 738 million, 825 million, and 929 million yuan respectively, with corresponding EPS of 0.13, 0.15, and 0.17 yuan per share [10][14]. - Revenue for 2023 is projected at 80.343 billion yuan, with a growth rate of -3.88%, and is expected to reach 98.803 billion yuan by 2027 [11][14]. Fund Utilization - The main projects funded by the capital increase include a total package project for the Basra Oil Company in Iraq, with a contract value of 18 billion yuan, and a pipeline project in the UAE with a contract value of 3.688 billion yuan [7]. - The company aims to enhance its competitiveness in overseas oil and gas engineering through these projects [7]. Shareholder Returns - The company has introduced a three-year dividend plan, committing to distribute at least 30% of the average distributable profits over the last three years, with a minimum of 80% in cash dividends during mature phases without major capital expenditures [8]. Industry Position - The company benefits from a strong partnership with CNPC, which is a major player in the oil and gas sector, providing significant sales revenue [9]. - The collaboration with CNPC is expected to enhance the company's market position and profitability through integrated operations across the energy value chain [9].