EBSCN·2024-02-25 16:00Investment Rating - The report maintains a "Buy" rating for China National Offshore Oil Corporation (CNOOC) with a target price of 24.99 CNY, indicating a potential return exceeding 15% over the next 6-12 months [12][11]. Core Insights - CNOOC has made a significant breakthrough in oil and gas exploration with the discovery of the Bohai Zhong 26-6 oil field, which has achieved a new testing capacity high and added over 40 million cubic meters of proven geological reserves, pushing the total reserves of this oil field to over 200 million cubic meters, making it the largest metamorphic rock oil field globally [3][4]. - The company is committed to increasing domestic oil and gas reserves and production through its "Seven-Year Action Plan," focusing on innovative exploration and addressing challenges in oil and gas exploration [5][8]. - CNOOC's oil and gas production is expected to maintain strong growth in 2024 and 2025, with net profits projected at 1354 billion CNY, 1391 billion CNY, and 1453 billion CNY for 2023, 2024, and 2025 respectively, translating to EPS of 2.85 CNY, 2.92 CNY, and 3.06 CNY [8][19]. Summary by Sections Exploration and Production - The Bohai oil field accounts for 66% of domestic reserves, and CNOOC is enhancing exploration efforts to support production growth [5]. - The company plans to increase capital expenditures for exploration and development, with a budget of 1250-1350 billion CNY for 2024, reflecting a year-on-year increase [16][27]. Financial Performance - CNOOC's revenue is projected to grow from 4073 billion CNY in 2023 to 4383 billion CNY in 2025, with a slight decrease in growth rate expected in 2023 [19]. - The net profit is expected to show a gradual increase, with a forecasted growth rate of 2.71% in 2024 and 4.50% in 2025 [19]. Market Position - CNOOC's strategy includes focusing on finding large and medium-sized oil and gas fields, with a target reserve replacement rate of no less than 130% for 2024 [27]. - The company aims to maintain a high dividend policy while achieving high profitability in a stable oil price environment [8].