Changjiang Securities·2024-04-08 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The report highlights that the drilling day rate has reached a turning point, benefiting from the ongoing recovery in the oil service market [5]. - In 2023, the company achieved a revenue of 44.109 billion yuan, a year-on-year increase of 23.70%, and a net profit attributable to shareholders of 3.013 billion yuan, up 27.75% year-on-year [5]. - The report emphasizes the significant improvement in the company's performance due to increased investment in oil and gas exploration and development by oil companies, driven by high oil prices [5][6]. Summary by Sections Revenue and Profit - The company reported a revenue of 44.109 billion yuan in 2023, with a net profit of 3.013 billion yuan, marking increases of 23.70% and 27.75% respectively [5]. - In Q4 2023, the revenue was 14.601 billion yuan, up 27.93% year-on-year, and the net profit was 740 million yuan, a substantial increase of 154.31% [5]. Drilling Operations - The global drilling market has remained active, with the company’s drilling platform operating days totaling 17,726 days in 2023, an increase of 999 days or 6.0% year-on-year [5]. - The average day rate for drilling platforms saw a turning point in 2023, with an increase of 11.5% for the year, driven by a 16.7% increase in semi-submersible platforms [5]. Market Expansion and Contracts - The company secured significant contracts, including a 4.7 billion yuan contract with two international oil companies in Norway and a 900 million yuan contract in Mexico [6]. - The report indicates that the company is expected to benefit from the growing demand for oilfield services as the market continues to recover [6]. Future Earnings Projections - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.86 yuan, 1.04 yuan, and 1.25 yuan respectively, with corresponding price-to-earnings (PE) ratios of 20.12X, 16.62X, and 13.82X [5].