COOEC(600583) 民生证券·2024-03-31 16:00Investment Rating - The report initiates coverage with a "Buy" rating for the company [2]. Core Views - The oil and gas industry is experiencing a recovery, and the leading offshore engineering company is expected to benefit significantly from this trend. The company has a robust order backlog and is well-positioned to capitalize on high capital expenditures in the upstream sector due to rising oil prices [1][2]. - The company achieved a record contract value of 33.986 billion yuan in 2023, with overseas contracts reaching 14.176 billion yuan, marking a historical high. The total uncompleted orders at the end of 2023 amounted to approximately 39.6 billion yuan, providing strong support for future workloads [1][2]. - The report forecasts revenue growth for the company from 33.756 billion yuan in 2024 to 40.972 billion yuan in 2026, with corresponding net profits increasing from 1.873 billion yuan to 2.676 billion yuan during the same period [2]. Summary by Sections Company Overview - The company is the largest and most powerful offshore oil and gas engineering contractor in the Asia-Pacific region, fully owned by CNOOC. It is the only large-scale engineering contractor in China that integrates design, procurement, construction, offshore installation, commissioning, and maintenance of offshore oil and gas development projects [1][6][8]. - The company has been recognized in the ENR rankings, placing 68th among the "Top 250 International Contractors" and 98th among the "Top 250 Global Contractors" in 2023 [1][6]. Financial Performance - The company’s revenue grew from 14.710 billion yuan in 2019 to 30.752 billion yuan in 2023, with a CAGR of 20.24%. Net profit increased from 28 million yuan in 2019 to 1.621 billion yuan in 2023, with a CAGR of 175.84% [11][12]. - The report anticipates continued revenue and profit growth, with net profit expected to reach 1.873 billion yuan in 2024, reflecting a year-on-year growth of 15.6% [2][11]. Market Conditions - The oil and gas industry is recovering, driven by high oil prices that stimulate upstream capital expenditures. The report highlights that the international oil market is expected to remain balanced in 2024, influenced by geopolitical factors and central bank policies [1][18]. - China's reliance on foreign oil and gas resources is high, with crude oil dependency reaching 72.93% and natural gas dependency at 42.2% in 2023. This situation underscores the importance of increasing domestic production to ensure energy security [1][24][25]. Investment Recommendations - The report suggests that the ongoing increase in domestic oil and gas capital expenditures, particularly in unconventional oil and gas exploration and development, will benefit the company significantly. The projected revenue and profit growth rates indicate a favorable investment opportunity [1][2][11].