ZPEC(SH:603619) Xinda Securities·2024-04-30 01:30Investment Rating - The investment rating for Zhongman Petroleum (603619.SH) is "Buy," consistent with the previous rating of "Buy" [1]. Core Views - The report highlights that short-term fluctuations do not alter the long-term growth potential of the company. In 2023, Zhongman Petroleum achieved a revenue of 3.732 billion yuan, a year-on-year increase of 17%, and a net profit attributable to shareholders of 810 million yuan, up 68% year-on-year [1]. - The report anticipates continued strong performance in the coming years, with projected net profits of 1.089 billion yuan, 1.351 billion yuan, and 1.523 billion yuan for 2024, 2025, and 2026, respectively, reflecting growth rates of 34.4%, 24.0%, and 12.8% [9]. Financial Performance Summary - In 2023, the company reported a net cash flow from operating activities of 1.583 billion yuan, a significant increase of 161% year-on-year [1]. - The gross profit margins for the four main segments in 2023 were as follows: drilling equipment manufacturing at 10.73%, drilling engineering services at 11.76%, crude oil sales at 72.67%, and petroleum products and trade at 19.12% [1]. - The company’s earnings per share (EPS) for 2023 was 2.02 yuan, representing a 69% increase year-on-year [1]. Contractual and Operational Insights - In 2023, Zhongman Petroleum signed 41 contracts for drilling engineering services and 158 contracts for equipment manufacturing, with contract values increasing by 26.5% and 69.7% year-on-year, respectively [2]. - The report notes a significant improvement in the gross margin of the drilling services segment, which increased by 8.87 percentage points to 11.76% due to a decrease in external service costs [2]. Shareholder Returns - The company proposed a cash dividend of 6.20 yuan per 10 shares, totaling 246 million yuan, with a payout ratio of 30.3%, up from 28.9% the previous year [9]. - In 2023, the company repurchased shares worth approximately 39.996 million yuan, with the total repurchase and cash dividends accounting for 35.3% of the net profit attributable to shareholders [9]. Debt and Equity Position - As of April 2024, the proportion of pledged shares held by the controlling shareholder, Zhongman Holdings, has decreased to 58.55% of their total holdings, indicating a reduced risk associated with share pledges [3].