ZPEC(SH:603619) Tianfeng Securities·2024-02-01 16:00Investment Rating - The investment rating for the company is "Accumulate" [8] Core Views - The company's net profit attributable to shareholders for 2023 is expected to be between 800 million to 850 million CNY, representing a year-on-year increase of 58.9% to 68.9% [5][6] - The increase in oil production, particularly from the Wensu oilfield, which achieved a production of 581,000 tons in 2023, up 33.82% from the previous year, is a significant driver of profit growth [1][5] - The company has initiated a share repurchase program, indicating confidence in its future performance, with a total repurchase amount planned between 80 million to 160 million CNY [3][6] Financial Performance Summary - The company's revenue is projected to grow from 3,065.16 million CNY in 2022 to 3,920.64 million CNY in 2023, reflecting a growth rate of 27.91% [7] - The net profit attributable to the parent company is forecasted to increase from 503.33 million CNY in 2022 to 827.80 million CNY in 2023, marking a growth rate of 64.47% [7] - Earnings per share (EPS) is expected to rise from 1.26 CNY in 2022 to 2.07 CNY in 2023 [7] Project Developments - The company has included the Jiange block in its consolidated financial statements, which is expected to contribute positively to future earnings [2][6] - The Kekeya oilfield is estimated to provide an additional 150,000 tons of oil per year, further enhancing production capacity [1][6] Valuation Metrics - The company's price-to-earnings (P/E) ratio is projected to decrease from 14.15 in 2022 to 8.60 in 2023, indicating improved valuation attractiveness [7] - The price-to-book (P/B) ratio is expected to decline from 3.10 in 2022 to 2.93 in 2023 [7]