Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a revenue of 22.597 billion yuan for the first half of 2025, an increase of 4.46% year-on-year, and a net profit attributable to shareholders of 1.829 billion yuan, up 13.15% year-on-year [2][6]. - In Q2 2025, the company achieved a revenue of 12.522 billion yuan, a 0.78% increase year-on-year, and a net profit of 1.235 billion yuan, reflecting a 10.75% year-on-year growth [2][6]. - The gross margin and net margin for the first half of 2025 reached historical highs, at 15.33% and 8.31% respectively, with year-on-year increases of 1.18 percentage points and 0.56 percentage points [12]. - The energy technology service sector saw revenue growth of 2.79% year-on-year, with a gross margin of 21.46%, marking a 2.47 percentage point increase [12]. - The low-carbon environmental protection and digitalization sectors also reported increased workloads, with revenue of 3.870 billion yuan, up 11.17% year-on-year [12]. - The energy logistics service sector's revenue grew by 5.13% year-on-year, reaching 11.640 billion yuan, supported by strategic sales approaches [12]. - The company plans to optimize resource allocation by selling its cold energy business and assets for a total of 371 million yuan [12]. Summary by Sections Financial Performance - For the first half of 2025, the company achieved a total revenue of 22.597 billion yuan and a net profit of 1.829 billion yuan, with significant growth in both metrics compared to the previous year [2][6]. - The gross margin and net margin reached 15.33% and 8.31%, respectively, both setting historical records for the same period [12]. Sector Performance - The energy technology service sector reported a revenue of 7.993 billion yuan, with a gross margin of 21.46%, indicating strong performance and effective investment in high-end oil and gas equipment [12]. - The low-carbon and digital sectors showed robust growth, with specific business areas like new energy technology and safety emergency services experiencing significant increases in workload [12]. Strategic Initiatives - The company is actively pursuing a differentiated operational strategy to mitigate oil price fluctuations, which has resulted in a notable increase in revenue from the energy logistics service sector [12]. - The planned divestiture of the cold energy business is aimed at enhancing resource allocation and supporting the company's transition and upgrade [12].

Core Viewpoint - The report highlights that CNOOC Development (海油发展) achieved expected performance in H1 2025, with growth in low-carbon and digitalization sectors, and maintains a "buy" rating for the stock [1][4]. Financial Performance - In H1 2025, the company reported revenue of 22.597 billion yuan, a year-on-year increase of 4.46%, and a net profit attributable to shareholders of 1.829 billion yuan, up 13.15% [1]. - For Q2 2025, revenue reached 12.522 billion yuan, reflecting a 0.78% increase, while net profit was 1.235 billion yuan, growing by 10.75% [1]. - Basic earnings per share (EPS) for H1 2025 was 0.18 yuan, an increase of 13.21% year-on-year [1]. Sector Performance - The energy technology service sector generated revenue of 7.993 billion yuan in H1 2025, up 2.79% year-on-year [1]. - The company saw a 16.11% increase in the workload of downhole tools and a 3.24% increase in artificial lifting services [1]. - The low-carbon and digitalization sectors achieved revenue of 3.870 billion yuan, a growth of 11.17% year-on-year [2]. Strategic Initiatives - The company is actively exploring the integration of oil and gas with renewable energy, successfully delivering high-speed wind power operation vessels [2]. - The company plans to sell its stakes in several gas companies and related assets to optimize resource allocation, with a total transfer price of 370 million yuan [3]. Profit Forecast and Valuation - The profit forecast for the company is maintained at 4.126 billion yuan for 2025, 4.659 billion yuan for 2026, and 5.232 billion yuan for 2027, with corresponding EPS of 0.41, 0.46, and 0.51 yuan [4]. - The price-to-earnings (PE) ratios are projected at 9.7, 8.6, and 7.7 for the respective years [4].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [11][13]. Core Viewpoints - The company operates in three main segments: energy technology services, energy logistics services, and low-carbon environmental and digitalization services. It has shown significant cost reduction and efficiency improvements since its listing, with a steady decline in operating expenses. Despite fluctuations in oil prices, the company's performance has been consistently growing, benefiting from the national seven-year action plan [2][7][46]. - The global potential for offshore oil and gas resources is substantial, with ultra-deepwater being a future trend. The company is well-positioned to capitalize on increased exploration and development efforts in offshore oil and gas, especially as domestic oil companies increase capital expenditures to enhance energy security [8][54]. - The company has a strong correlation between its revenue and profitability with the production activities of CNOOC, demonstrating resilience against oil price fluctuations. The average dividend payout ratio since its listing is 35.62%, indicating robust dividend potential as earnings continue to grow [10][39]. Summary by Sections Company Overview - The company is a publicly listed entity controlled by China National Offshore Oil Corporation (CNOOC), focusing on offshore and onshore oil and gas production. It aims to become a world-class energy technology service provider with a Chinese characteristic [7][30]. Business Segments - The company’s business is divided into three main categories: 1. Energy technology services, which have seen rapid revenue growth. 2. Energy logistics services, which are expected to benefit from stable demand for LNG transportation. 3. Low-carbon environmental and digitalization services, which are crucial for sustainable development [9][36][39]. Financial Performance - In 2024, the company achieved a revenue of 52.517 billion yuan, with energy logistics services contributing 23.210 billion yuan, energy technology services 21.733 billion yuan, and low-carbon services 10.060 billion yuan. The revenue from CNOOC accounted for 61.7% of total revenue [39][42]. - The company’s net profit for 2024 was 3.656 billion yuan, reflecting an 18.66% year-on-year increase, supported by a steady rise in operational efficiency and cost management [46][48]. Market Trends - The report highlights the increasing reliance on foreign oil and gas, with crude oil dependency reaching 72.1% and natural gas dependency at 42% by 2024. This trend emphasizes the need for enhanced domestic exploration and production efforts [55][56]. - The company is expected to benefit from CNOOC's stable capital expenditures, which are projected to increase significantly despite fluctuations in oil prices, supporting the overall offshore oil service industry [65][66].