GF SECURITIES·2024-05-09 01:02Investment Rating - The report assigns a "Buy" rating for both A-shares and H-shares of the company [1][2]. Core Views - The company is a leading domestic offshore oil service provider with global competitiveness. It is a subsidiary of CNOOC and primarily offers oilfield technology, drilling, and vessel services. Short-term performance in 2023 shows signs of continuous recovery, while long-term prospects are bolstered by industry recovery and the company's operational efficiencies [1][2]. Summary by Sections Company Overview - CNOOC Services is a leading integrated oil service provider globally, focusing on exploration, development, and production services. Its main revenue sources are drilling services and oilfield technology services, contributing over 80% of total revenue [15][16]. Domestic Business - CNOOC has clear goals for increasing reserves and production, with a capital expenditure budget of 125-135 billion yuan for 2024. The company is also expanding its deepwater operations in the South China Sea, creating new growth opportunities [2][5]. Overseas Business - The global demand for drilling rigs is increasing due to a recovery in demand and a reduction in supply. The company’s drilling business is expected to benefit from this trend, with significant potential for revenue growth and improved profit margins [2][5]. Financial Forecast and Investment Recommendations - The forecast for net profit attributable to shareholders is 4.065 billion yuan in 2024, 5.071 billion yuan in 2025, and 5.970 billion yuan in 2026. The expected EPS is 0.85 yuan, 1.06 yuan, and 1.25 yuan per share for the respective years. The report sets a target PE of 25 times for A-shares and 10 times for H-shares, leading to a fair value of 21.30 yuan and 9.37 HKD per share [2][4].