Guotai Junan Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for CNOOC (China National Offshore Oil Corporation) with a target price raised to 33.83 CNY from the previous 27.60 CNY [10][11]. Core Views - The company's performance in 2023 met market expectations, with continued efforts in increasing reserves and production while reducing costs and improving efficiency [10]. - CNOOC's revenue for 2023 was 416.61 billion CNY, showing a slight year-on-year decrease of 1%, while net profit attributable to shareholders was 26.2 billion CNY, down 13% year-on-year [10][11]. - The company emphasizes shareholder returns, proposing a total dividend of approximately 54 billion CNY, with a payout ratio of about 43.6% [10][11]. Summary by Sections Financial Performance - CNOOC's net oil equivalent production in 2023 was 678 million barrels, an increase of 8.7% year-on-year, with a leading cost control in oil production [10][11]. - The company achieved a net confirmed reserve of 6.784 billion barrels of oil equivalent, maintaining a reserve life of over 10 years [10][11]. - The report forecasts EPS for 2024/2025 at 2.85/3.12 CNY, with an expected EPS of 3.21 CNY for 2026 [10][11]. Valuation Metrics - The report includes a comparison of valuation metrics with peer companies, indicating a price-to-book ratio (P/B) of 2.1 for CNOOC [10][11]. - The company's market capitalization is reported at 1,334.25 billion CNY, with a 52-week price range of 16.47-30.58 CNY [2][10]. Growth Prospects - CNOOC plans to continue its capital expenditure (CAPEX) in the range of 1250-1350 billion CNY for 2024, supporting ongoing growth in reserves and production [10][11]. - The company is expected to achieve a production growth rate of 7.4% in 2024, driven by significant discoveries in the South China Sea and Bohai Sea regions [10][11].