CNOOC(HK:00883) Soochow Securities·2024-02-25 16:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has made significant discoveries in the Bohai Sea, with the Bohai Zhong 26-6 oilfield becoming the largest metamorphic rock oilfield globally, with proven geological reserves exceeding 40 million cubic meters [3]. - The company has raised its production targets for 2024-2025, with a net production target of 700-720 million barrels of oil equivalent for 2024, reflecting a year-on-year increase of 3.7% to 6.7% [3]. - Capital expenditures are set to increase, with a total budget of RMB 125-135 billion for 2024, focusing on exploration, development, and production [3]. - The company emphasizes shareholder returns, maintaining a dividend payout ratio of no less than 40% from 2022 to 2024, with an absolute dividend value of no less than HKD 0.70 per share [4]. - Profit forecasts indicate a net profit of RMB 127.8 billion, RMB 139.7 billion, and RMB 149.8 billion for 2023-2025, with corresponding P/E ratios of 5.3, 4.9, and 4.6 [4]. Financial Summary - Total revenue for 2023 is projected at RMB 406.2 billion, with a year-on-year growth of 4.38% [2]. - The company's net profit for 2023 is expected to be RMB 127.8 billion, reflecting a decrease of 9.8% compared to the previous year [2]. - The company’s capital expenditures for 2023 have been adjusted to approximately RMB 128 billion, aligning with its targets [3]. - The company’s total assets are projected to reach RMB 1,195.5 billion by 2024, with a debt-to-equity ratio of 36.80% [6][8].