Core Insights - The report highlights that in 2024, China's oil and gas production reached a historic high of 4.09 million tons, marking a continuous increase for eight years, and successfully completed the "Seven-Year Action Plan" two years ahead of schedule [1][8]. Group 1: Production and Exploration Achievements - In 2024, China's crude oil production reached 213 million tons, nearing historical peaks, while natural gas production exceeded 246.5 billion cubic meters, maintaining a growth of over 10 billion cubic meters for eight consecutive years [1][8]. - The marine and unconventional oil and gas sectors were the main contributors to production growth, with marine oil and gas production exceeding 85 million tons and shale oil production increasing by 35% year-on-year to over 6 million tons [1][2]. Group 2: Exploration Breakthroughs - The exploration sector focused on five key areas: deep and ultra-deep layers, marine, unconventional, new regions, and mature exploration areas, achieving significant breakthroughs [2]. - Notable achievements include the completion of China's first ultra-deep well "Deep Earth Taka 1" at a depth of 10,910 meters and the discovery of major oil fields in the Pearl River Mouth Basin and Qiongdongnan Basin [2]. Group 3: Technological Innovations - In 2024, China made significant advancements in oil and gas geological theory, exploration and development technologies, and equipment autonomy, enhancing the industry's technological capabilities [3]. - The introduction of high-density seismic exploration technology and advancements in shale gas drilling techniques led to an additional crude oil production of over 36 million tons in 2024 [3]. Group 4: Green Transition and Renewable Energy Integration - The oil and gas industry accelerated its integration with renewable energy, adding over 4 million kilowatts of solar and wind power capacity in 2024, and achieving record geothermal heating area [4]. - The application of CCUS (Carbon Capture, Utilization, and Storage) technology deepened, with 10 new CCUS-EOR projects added in 2024, cumulatively injecting 14.73 million tons of CO2 [4]. Group 5: Future Outlook - For 2025, the oil and gas industry aims to focus on high-quality development, with plans to maintain crude oil production at 200 million tons and continue increasing natural gas production by over 10 billion cubic meters for nine consecutive years [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is accelerating its localization layout in overseas distribution and power supply, while enhancing its integration capabilities in the new energy sector [5] - In 2024, the company achieved operating revenue of 4.717 billion yuan, a year-on-year increase of 12.30%, and a net profit attributable to shareholders of 1.002 billion yuan, a year-on-year increase of 2.00% [4] - The company is expanding its overseas market presence with new production bases in Europe, Latin America, and Africa, while also integrating its distribution and new energy product design capabilities domestically [5] Financial Performance - In Q1 2025, the company reported revenue of 784 million yuan, a year-on-year decrease of 12.99%, and a net profit of 141 million yuan, a year-on-year decrease of 34.07% [4] - The gross profit margin for 2024 was 43.95%, an increase of 2.05 percentage points year-on-year, while the gross profit margin for Q1 2025 was 42.44%, a decrease of 1.18 percentage points year-on-year [4] - Revenue is projected to grow to 5.397 billion yuan in 2025, 6.127 billion yuan in 2026, and 6.902 billion yuan in 2027, with corresponding net profits of 1.293 billion yuan, 1.483 billion yuan, and 1.661 billion yuan respectively [6][8] Segment Performance - In 2024, the smart distribution and power supply segment generated revenue of 4.535 billion yuan, a year-on-year increase of 13.35%, with overseas revenue of 2.940 billion yuan (up 9.77%) and domestic revenue of 1.595 billion yuan (up 20.61%) [5] - The new energy segment reported revenue of 143 million yuan, a year-on-year decrease of 12.32% [5] Valuation Metrics - The projected P/E ratios for 2025, 2026, and 2027 are 10, 9, and 8 times respectively [6] - The projected P/B ratios for the same years are 1.53, 1.30, and 1.11 respectively [8]