COOEC(600583) Changjiang Securities·2024-05-17 09:02Investment Rating - The report maintains a "Buy" rating for the company [8][10]. Core Views - The company has a full workload and sufficient orders, benefiting from the recovery of the offshore engineering industry [5][6]. - In Q1 2024, the company achieved total revenue of 5.672 billion yuan, a year-on-year decrease of 11.33%, while net profit attributable to shareholders increased by 5.96% to 475 million yuan [6]. - The company completed a record steel processing volume of 472,000 tons in 2023, a 25% increase year-on-year, and is actively advancing domestic and international oil and gas engineering projects [7]. - The company secured a market contract amount of 33.986 billion yuan in 2023, a 32.55% year-on-year increase, with overseas contracts reaching 14.176 billion yuan, a 233% increase [7]. - The potential of offshore oil and gas resources is significant, and the company is expected to benefit from increased capital expenditure by CNOOC [7]. - The company has announced a shareholder return plan, aiming for a cash dividend payout ratio of no less than 30% in the future [8]. Summary by Sections Financial Performance - In Q1 2024, the company reported total revenue of 5.672 billion yuan, a decrease of 11.33% year-on-year, while net profit attributable to shareholders was 475 million yuan, an increase of 5.96% [6]. - The company expects EPS for 2024-2026 to be 0.49 yuan, 0.61 yuan, and 0.78 yuan, respectively, with corresponding PE ratios of 13.05X, 10.43X, and 8.13X [8]. Market Development - The company has a robust order backlog of approximately 40.5 billion yuan, providing strong support for future workloads [7]. - The company is actively developing markets and has made significant breakthroughs in international contracting, transitioning from subcontractor to general contractor [7]. Industry Outlook - The offshore oil and gas sector is expected to see increased activity, with CNOOC's capital expenditure budget for 2024 set between 125 billion and 135 billion yuan, indicating growth potential for the offshore service industry [7].