SSC(600871) EBSCN·2024-03-27 16:00Investment Rating - The report maintains an "Accumulate" rating for both A-shares and H-shares of the company [2] Core Views - The oil service industry is experiencing a steady recovery in 2023, with significant market expansion results [2] - The company achieved total operating revenue of 80 billion RMB in 2023, a year-on-year increase of 8.4%, and a net profit attributable to shareholders of 589 million RMB, up 23.8% year-on-year [5][6] - The company signed new contracts worth 82.4 billion RMB in 2023, marking a 1.7% increase year-on-year, the best performance since the 13th Five-Year Plan [7] - International business revenue reached 16.09 billion RMB, a 23.6% increase from 2022, accounting for 20.4% of total revenue [8] - The company is expected to benefit from sustained high upstream capital expenditure from its parent company, Sinopec, which is projected to maintain high levels in 2024 [9] Summary by Sections Revenue Performance - The company reported total operating revenue of 80 billion RMB in 2023, with a year-on-year growth of 8.4% [5] - The net profit attributable to shareholders was 589 million RMB, reflecting a 23.8% increase year-on-year [5] Market Expansion - The company signed new contracts totaling 82.4 billion RMB in 2023, achieving the best level since the 13th Five-Year Plan [7] - The domestic market saw a focus on optimizing resource allocation and enhancing operational efficiency, with a team utilization rate of 88.7% [7] International Business - The international business segment generated 16.09 billion RMB in revenue, a 23.6% increase from the previous year, driven by strategic opportunities in key markets [8] Future Outlook - The company is expected to continue benefiting from high upstream capital expenditures from Sinopec, with projected expenditures of 77.6 billion RMB in 2024 [9] - The global oilfield service market is anticipated to grow, with a forecasted increase in capital expenditures for exploration and development [9]