COOEC(SH:600583)2024-04-25 02:32Investment Rating - The report maintains a "Buy" rating for the company [4][10]. Core Views - The company's Q1 2024 performance met expectations, with a revenue of 5.672 billion, a year-on-year decrease of 11.33%, and a net profit attributable to shareholders of 475 million, an increase of 5.96% [4]. - The improvement in performance is attributed to a reduction in expenses, particularly a significant decrease in R&D expenses by 94.18% and a decline in financial expenses due to increased interest income [4]. - The company has a solid order backlog of approximately 40.5 billion, supporting ongoing business development [4]. - The company plans to distribute at least 30% of its net profit to shareholders in cash dividends annually from 2024 to 2026, indicating a commitment to shareholder returns [4]. Summary by Sections Financial Performance - Q1 2024 revenue was 5.672 billion, down 11.33% year-on-year; net profit was 475 million, up 5.96%; and the net profit margin was 9.91%, down 1.68 percentage points [4][5]. - The company forecasts net profits of 2.015 billion, 2.514 billion, and 3.048 billion for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 14x, 11x, and 9x [4][5]. Order and Market Outlook - The company secured a market contract amounting to 6.517 billion in Q1 2024, a year-on-year increase of 11%, with significant projects in both domestic and international markets [4]. - The Brent crude oil price is expected to remain in the range of 80-90 USD, which is anticipated to drive further growth in exploration and development capital expenditures globally [4]. Shareholder Returns - The company has announced a shareholder return plan for 2024-2026, committing to distribute at least 30% of net profit as cash dividends, with the potential for increased dividend levels as performance improves [4].