BOMESC(SH:603727) Tianfeng Securities·2024-04-26 10:30Investment Rating - The investment rating for the company is maintained at "Buy" with a target price not specified [4]. Core Insights - The company reported a significant increase in Q1 earnings, with revenue reaching 500 million, a year-on-year increase of 60.35%, and a net profit attributable to the parent company of 34 million, up 287% year-on-year and 219% quarter-on-quarter, exceeding market expectations [1][10]. - The recovery in profit margins is attributed to several factors, including the resumption of new orders and improved pricing and gross margin levels [2]. - The offshore engineering industry is experiencing an upturn, with expectations for continued growth in new orders and performance [3]. Financial Performance Summary - Revenue for 2024 is projected at 2.93 billion, with net profit attributable to the parent company forecasted at 106.07 million, corresponding to a PE ratio of 36.81 [11]. - The company signed three large contracts in 2023 with a total value of at least 510 million USD, which are expected to enhance operational capacity starting in 2024 [10]. - The gross profit margin for Q1 was reported at 17.14%, an increase of 24.17 percentage points year-on-year, and the net profit margin was 6.8%, up 4.49 percentage points quarter-on-quarter [10]. Financial Data and Valuation - The company’s total market capitalization is approximately 3.90 billion, with a total share capital of 281.72 million shares [4]. - The projected revenue growth rates for 2024, 2025, and 2026 are 62.95%, 54.85%, and 23.71%, respectively [11]. - The company is actively targeting regions with significant growth in offshore oil and gas investments, such as the Middle East and South America, while enhancing its overall service capabilities [10].