Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's performance in H1 2025 met expectations, with total revenue of 23.32 billion yuan, a year-on-year increase of 3.5%, and a net profit attributable to shareholders of 1.964 billion yuan, up 23.3% year-on-year [7] - The drilling segment showed significant improvement, with operating days for drilling platforms reaching 9,906 days, a 10.5% increase year-on-year, and a utilization rate of 93.4% [7] - The oilfield technology service segment experienced a decline in performance but maintained a high gross margin of 24% [7] - The shipbuilding segment saw a notable increase in market share, with operating days up 27.6% year-on-year [7] - The company plans to maintain high capital expenditures, with a forecast of 125 to 135 billion yuan for 2025, which is expected to provide more development opportunities [7] - The profit forecasts for 2025-2027 are set at 3.711 billion, 4.460 billion, and 5.394 billion yuan, corresponding to PE ratios of 18X, 15X, and 13X respectively [7] Financial Data and Earnings Forecast - Total revenue is projected to reach 51.882 billion yuan in 2025, with a year-on-year growth rate of 7.4% [6] - The net profit attributable to shareholders is expected to be 3.711 billion yuan in 2025, reflecting an 18.3% year-on-year increase [6] - The gross margin is forecasted to be 16.4% in 2025, with a return on equity (ROE) of 7.9% [6]

Group 1 - Huatong Cable held its fourth board meeting on August 25, 2025, to review the 2025 semi-annual report and its summary [1] - For the year 2024, Huatong Cable's revenue composition is as follows: 65.5% from the wire and cable industry, 30.94% from the oil service industry, and 3.56% from other businesses [1] - As of the report, Huatong Cable has a market capitalization of 11.5 billion yuan [1] Group 2 - The A-share market has seen trading volumes exceed 2 trillion yuan for eight consecutive days, indicating strong market activity [1] - Major industry players are actively recruiting for autumn positions, with 25 job openings available [1]

Economic Indicators - The initial value of the US Composite PMI for August is reported at 55.4, marking a 9-month high [1][2] - The Manufacturing PMI initial value stands at 53.3, reaching a 39-month high, while the Services PMI initial value is 55.4, indicating a 2-month low [2] Labor Market Insights - Initial jobless claims rose by 11,000 to 235,000, the largest increase since late May, while continuing claims increased to 1.972 million, the highest level since November 2021 [2] - These trends suggest a potential increase in layoff risks and signs of labor market weakness [2] Federal Reserve Policy Outlook - Fed Chair Powell's recent dovish signals suggest a possible interest rate cut in September, with market expectations for a 25 basis point cut rising to approximately 85% [3] - Powell indicated that the current economic conditions may require adjustments to the policy stance, balancing inflation risks and employment concerns [2][3] Market Reactions - The US stock market experienced a rebound, with the Dow Jones Industrial Average reaching its first record close of the year, driven by Powell's comments [4] - The energy sector saw the largest gains, up 2.8%, influenced by geopolitical uncertainties affecting oil prices [4] Sector Performance - Technology stocks faced pressure, with a notable decline in AI-related stocks, despite the overall market breadth remaining stable [5] - The expected earnings multiple for the technology sector reached around 30 times, the highest in a year, indicating heightened investor enthusiasm [5]

Group 1 - The recent dovish signal from Federal Reserve Chairman Powell at Jackson Hole has led to a rebound in global risk assets, with the Dow Jones Industrial Average reaching its first historical high of the year [1] - The market is now focused on the upcoming personal consumption expenditures price index, which is the Fed's preferred inflation indicator, as future inflation paths will significantly impact interest rate cut prospects and investor risk appetite [1][3] - The S&P Global reported that the U.S. August composite PMI preliminary value reached 55.4, a nine-month high, while the manufacturing PMI preliminary value hit 53.3, a 39-month high [3] Group 2 - The likelihood of a 25 basis point rate cut by the Fed in September has risen from around 70% to nearly 85% [4] - Despite Powell's hints at a rate cut, it is not expected to mirror last year's 50 basis point cut, as he believes the labor market is balanced and recent weaknesses do not indicate significant risks [5] - The U.S. stock market experienced a rebound, with the Dow Jones reaching a record close, driven by expectations of Fed easing, particularly in the energy, real estate, and financial sectors [6][8] Group 3 - The technology sector has faced pressure, with AI-related stocks being a major contributor to recent market weakness, despite significant gains earlier in the year [6][7] - There are indications that 95% of companies investing in AI have not seen returns, suggesting potential over-excitement among investors [7] - The market breadth remains stable, indicating that investors are not entirely fleeing but are seeking new leaders in cyclical sectors like industrials, energy, and finance [7][8]

Core Viewpoint - The contract for the Amistad gas field integrated service project has been awarded to a joint venture of China Oilfield Services Limited (COSL) and Chuanqing Drilling Engineering Company by the Ecuadorian state oil company, marking COSL's first entry into the South American market and a significant achievement in its international mid-to-high-end market development [1] Group 1 - COSL possesses comprehensive service capabilities for offshore oil and gas exploration and development at a water depth of 120 meters and drilling capabilities at a depth of 1500 meters, making it one of the most powerful marine oil and gas engineering technology service companies in China [1] - In recent years, COSL has accelerated its "international operation" strategy, leveraging strong support from the "six unifications" management of overseas projects to actively develop international markets in collaboration with partner companies [1] Group 2 - The Ecuadorian state oil company plans to conduct workover and production enhancement operations on four wells at the Amistad gas field to restore natural gas production to meet local electricity demand [1] - Chuanqing Drilling's Ecuador branch and COSL have closely collaborated over more than two years, actively tracking the project and engaging in multiple rounds of market promotion, technical exchanges, contract clarifications, and negotiations, ultimately gaining high recognition and positive evaluations from the owner [1]

Market Overview - On August 21, the market experienced fluctuations with mixed performance across the three major indices. The Shanghai Composite Index rose by 0.13%, while the Shenzhen Component Index fell by 0.06%, and the ChiNext Index decreased by 0.47% [1] - The total trading volume in the Shanghai and Shenzhen markets reached 2.42 trillion yuan, an increase of 15.8 billion yuan compared to the previous trading day, marking the seventh consecutive day with trading volume exceeding 2 trillion yuan [1] - High-performing stocks saw significant declines, with multiple stocks, including Feilong Co., hitting the daily limit down [1] Sector Performance - The top-performing sectors included domestic mesh panels, robots, and liquid-cooled servers, with respective increases of 14, 25, and 24 [2] - The chip sector reached a new high with an increase of 19, while the robot concept sector also saw a rise of 14 [2] - Other notable sectors included the medical industry and the automotive parts sector, which also showed positive growth [2]

Core Viewpoint - Baikin Oilfield Services (02178) reported a significant decline in revenue and an increase in losses for the six months ending June 30, 2025, primarily due to delays in shale gas production projects and reduced income from the Middle East market [1] Financial Performance - Revenue for the period was HKD 111 million, representing a year-on-year decrease of 32.9% [1] - The loss attributable to the company's owners was HKD 11.793 million, which expanded by 2885.6% year-on-year [1] - Basic loss per share was HKD 0.68 [1] Operational Factors - The decrease in revenue was mainly due to a client delaying several shale gas production enhancement projects to the second half of 2025, resulting in reduced enhancement services provided in Southwest China [1] - Additionally, revenue from the Middle East market decreased due to the expiration of a supervisory service contract in the first half of 2024, with no income generated from this contract in the first half of 2025 [1]

Core Viewpoint - The company reported a significant decline in revenue and an increase in losses for the six months ending June 30, 2025, primarily due to delays in shale gas production projects and reduced income from the Middle East market [1] Financial Performance - Revenue for the period was HKD 111 million, representing a year-on-year decrease of 32.9% [1] - The loss attributable to the company's owners was HKD 11.793 million, which is an increase of 2885.6% compared to the previous year [1] - Basic loss per share was HKD 0.68 cents [1] Operational Factors - The decrease in revenue was mainly due to a client delaying several shale gas production enhancement projects to the second half of 2025, resulting in reduced enhancement services provided in Southwest China [1] - Additionally, revenue from the Middle East market decreased because a supervisory service contract expired in the first half of 2024, with no income generated from that contract in the first half of 2025 [1]

Core Viewpoint - The company, 百勤油服 (02178.HK), is expected to see a significant decline in revenue for the first half of 2025, dropping approximately 32.9% from about 165.9 million HKD in the first half of 2024 to around 111.3 million HKD in the first half of 2025 due to delays in shale gas production projects and reduced income from the Middle East market [1] Revenue Summary - The anticipated revenue for the first half of 2025 is approximately 111.3 million HKD, a decrease of about 32.9% from 165.9 million HKD in the first half of 2024 [1] - The revenue decline is primarily attributed to a client's internal extraction plan that has postponed several shale gas enhancement projects to the second half of 2025, resulting in reduced enhancement services in Southwest China [1] - Additionally, revenue from the Middle East market has decreased due to the expiration of a supervisory service contract in the first half of 2024, with no income generated from this contract in the first half of 2025 [1] Loss Summary - The company's net loss for the first half of 2025 is projected to be approximately 11.5 million HKD, with losses attributable to shareholders estimated at 11.8 million HKD, both of which represent an increase of about 11.1 million HKD and 11.4 million HKD respectively compared to the first half of 2024, where losses were around 0.4 million HKD [1]

Market Overview - The A-share market experienced fluctuations on Thursday, with the Shanghai Composite Index reaching a ten-year high. The total trading volume for the day was 2.42 trillion yuan, an increase of 158 billion yuan compared to the previous trading day, marking the seventh consecutive day with trading volume exceeding 2 trillion yuan [3][4]. - There was a net outflow of 80.2 billion yuan from domestic investors, with the median change in stock prices across the market being -0.35%. Despite the fluctuations, there was no significant sell-off signal, and the outlook for the index remains optimistic for further acceleration [3][4]. Sector Performance - The financial technology sector saw a collective rise, with concepts such as stablecoins and cross-border payments leading the gains. Stocks like Zhongyou Capital and Cuiwei Co. reached their daily limit [4]. - Bank stocks, including Agricultural Bank of China and Postal Savings Bank, continued to set historical highs in the afternoon session [4]. - Other sectors such as combustible ice, oil services, and electricity also rebounded, with stocks like Zhunyou Co. hitting their daily limit [4]. Short-term Market Sentiment - Short-term market sentiment was weak, with fewer than ten stocks achieving consecutive gains. High-profile stocks from the previous day, such as Jimin Health and Tenglong Co., experienced significant declines [4]. - However, there were still signs of capital attempting to consolidate, with stocks like Tongzhou Electronics and Dayuan Pump Industry showing strong support despite market fluctuations [4]. - The performance of stocks like Jishi Media at the end of the trading day could provide a positive stimulus for the short-term market if it continues to perform well [4].