GF SECURITIES·2026-03-08 13:08Investment Rating - The industry investment rating is "Buy" with a previous rating of "Buy" as well [5]. Core Insights - The report highlights the impact of the US-Iran conflict on oil service equipment, indicating significant effects on oil prices and shipping rates, which are expected to accelerate the recovery of the oil and gas cycle [8]. - The geopolitical situation is reshaping the oil and gas equipment landscape, prompting countries in the Middle East and North Africa to diversify their supply sources, which may enhance the penetration of domestic companies [8]. - Companies are leveraging core technologies to expand into new growth areas, particularly in high-temperature and high-pressure fields, which positions them favorably in a cyclical recovery [8]. Summary by Sections Oil Service Equipment - Rising oil prices are driving a recovery in the oil and gas cycle, with major oil companies showing signs of revenue recovery despite previous declines in EBITA [8]. - The conflict has led to a significant increase in oil prices, with Brent crude rising from $71.10 per barrel on February 27 to $94.35 per barrel by March 6 [8]. - Shipping rates have surged, with the Chinese import tanker rate index increasing from $203,000 per day to $469,000 per day during the same period [8]. Shipping Sector - Short-term, the increase in TCE prices has significantly shortened the investment return period for shipowners, leading to increased capital expenditure willingness [8]. - Long-term, geopolitical conflicts are expected to reduce global transportation efficiency, expanding the total shipping capacity needed [8]. Investment Recommendations - For the oil service sector, recommended stocks include Jereh and Neway, with additional attention to companies like Deewell and CNOOC Engineering [8]. - In the shipping sector, China Shipbuilding is recommended, with a watch on *ST Songfa [8].