Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [8]. Core Insights - The company reported a revenue of 17.66 billion yuan for the first three quarters of 2025, a year-on-year decrease of 13.54%. The net profit attributable to shareholders was 1.61 billion yuan, down 8.01% year-on-year, while the non-recurring net profit increased by 7.59% to 1.40 billion yuan [6]. - The third quarter saw a revenue of 6.34 billion yuan, a decline of 9.34% year-on-year but a slight increase of 1.96% quarter-on-quarter. The net profit for Q3 was 507 million yuan, down 7.55% year-on-year and 9.13% quarter-on-quarter [6]. - The company’s gross margin for Q3 was 11.03%, a decrease of 2.56 percentage points, primarily due to the impact of typhoons and a temporary decline in workload [6]. - The company achieved a record high in overseas contract awards, with a total of 37.24 billion yuan in new orders, a year-on-year increase of 124.85%, including significant projects in Qatar and Thailand [8]. - The capital expenditure of China National Offshore Oil Corporation (CNOOC) is expected to remain high, providing a solid foundation for the company's performance [8]. Financial Summary - For 2025, the company is projected to achieve total revenue of 34.48 billion yuan, with a year-on-year growth rate of 15.1%. The net profit is expected to be 2.34 billion yuan, reflecting an 8.3% increase [7]. - The earnings per share (EPS) for 2025 is estimated at 0.53 yuan, with a price-to-earnings (PE) ratio of 11 [7]. - The company’s return on equity (ROE) is projected to be 8.3% for 2025, with a slight increase to 8.8% in the following years [7].

Investment Rating - The investment rating for the company is "Buy" for both A and H shares, maintained at this level [7]. Core Views - The company reported a revenue of 34.854 billion RMB for the first three quarters of 2025, a year-on-year increase of 3.54%. The net profit attributable to shareholders was 3.209 billion RMB, up 31.28% year-on-year, driven by improved rental rates and daily rates for drilling platforms [1]. - The gross margin for Q3 2025 was 19.53%, an increase of 1.46 percentage points year-on-year, attributed to higher utilization rates of large equipment and efficient operations of high daily rate projects [2]. - The drilling platform business is experiencing a recovery, with cumulative operating days reaching 14,784, a year-on-year increase of 12.3%, indicating strong operational efficiency [3]. - The company is focusing on high-return projects in its geophysical exploration segment, optimizing capacity to enhance overall business quality and profitability [4]. - Profit forecasts for 2025-2027 project net profits of 4.172 billion, 4.928 billion, and 5.642 billion RMB respectively, with corresponding EPS of 0.87, 1.03, and 1.18 RMB [5]. Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 11.533 billion RMB, a year-on-year increase of 3.60%, and a net profit of 1.246 billion RMB, up 46.13% year-on-year [1]. - The overall expense ratio decreased to 6.67%, down 0.61 percentage points year-on-year, reflecting improved cost control [2]. Drilling Platform Operations - The drilling platform's calendar day utilization rate reached 90.3%, a year-on-year increase of 11.6%, indicating strong demand in the offshore oil and gas sector [3]. Ship Operations and Geophysical Exploration - The company operates over 200 vessels, with a total operating time of 62,589 days, a year-on-year increase of 17.7% [4]. - The geophysical exploration segment has seen a strategic focus on high-return projects, with a significant increase in underwater operations [4]. Profitability and Valuation - The company is expected to maintain a valuation premium due to its leading position in the offshore oil and gas equipment industry, with target prices set at 16.05 RMB for A shares and 8.16 HKD for H shares [5].

Summary of Conference Call Records Company and Industry Involved - The discussion primarily revolves around the offshore oil and gas industry, specifically focusing on CNOOC (China National Offshore Oil Corporation) and its strategic developments in the sector. Key Points and Arguments 1. **Contribution from CNOOC**: The company's core business is significantly influenced by CNOOC, which is seen as a major contributor to future growth despite not currently impacting revenue and profits substantially [1] 2. **Strategic Direction**: The company emphasizes the need for industry layout and expansion into new business areas and products, aligning with future industry development trends [1] 3. **Market Expansion**: CNOOC's strategy includes extending operations from nearshore to offshore and deep-sea areas, which aligns with national energy security goals [2] 4. **Cost Efficiency**: CNOOC maintains the lowest extraction costs globally, which supports a stable gross margin despite market fluctuations [3] 5. **Pricing Model**: The pricing model based on monthly rentals and flight hours is expected to sustain reasonable gross margins, reflecting confidence in maintaining profitability [4] 6. **Emerging Technologies**: The company is exploring the e-vehicle sector, particularly in low-altitude air transport, but acknowledges regulatory challenges that may delay operational capabilities [5] 7. **Market Demand**: There is a recognition of the need for differentiated competition in ground transportation, emphasizing that demand must be clearly defined to avoid misalignment in service offerings [6] 8. **Flight Operations**: The company has seen a steady demand for its flight services, with routes like Zhuhai to Shenzhen showing potential for growth despite not being fully booked [8] 9. **Cost Reduction Impact**: If operational costs decrease, particularly through electric vehicles, there is optimism that demand could increase, although safety regulations must be prioritized [9] 10. **Regulatory Framework**: The company highlights the importance of regulatory support for new aviation technologies, indicating that operational licenses depend on compliance with existing regulations [13] 11. **Fleet Optimization**: The company is actively optimizing its fleet, considering new aircraft models to meet future market demands and improve operational efficiency [15] 12. **Business Segments**: The company operates in various segments, including offshore oil and gas, emergency services, and urban management, indicating a diversified business model [16] 13. **Government Support**: The company is pursuing government subsidies and tax incentives to enhance its operational capabilities and financial performance [18] 14. **Shareholder Returns**: There is a commitment to increasing dividend payouts and exploring multiple distributions per year to enhance shareholder value [19] 15. **Future Strategic Planning**: The company is focused on expanding its business in emergency services, port banking, and integrating new technologies like drones into its operations [21] Other Important but Overlooked Content - The company is aware of the need for regulatory frameworks to support new operational models, which is crucial for future growth and compliance [12] - The discussion reflects a broader trend in the industry towards integrating technology and enhancing operational efficiency, which may present new investment opportunities [17]