Core Viewpoint - The company reported a slight increase in total revenue and net profit for the first three quarters of 2025, but faced a decline in Q3 performance due to seasonal fluctuations and external factors [4][5]. Financial Performance - For the first three quarters of 2025, the company achieved total revenue of 33.95 billion yuan, a year-on-year increase of 0.8%, and a net profit attributable to shareholders of 2.85 billion yuan, up 6.1% year-on-year [4]. - In Q3 2025, the company recorded total revenue of 11.35 billion yuan, down 5.7% year-on-year and 9.4% quarter-on-quarter, with a net profit of 1.02 billion yuan, a decrease of 4.5% year-on-year and 17.2% quarter-on-quarter [4][5]. Operational Insights - The company maintained a steady growth in the oilfield service industry, benefiting from policies aimed at increasing reserves and production, despite the international oil price decline [5]. - The company focused on improving operational quality, with a return on equity (ROE) of 20.5% for the first three quarters, a slight decrease of 0.7 percentage points year-on-year, and a cost-to-profit margin of 9.6%, an increase of 0.6 percentage points year-on-year [5]. Cost Management and Transformation - The company implemented cost control measures, achieving a gross profit margin of 16.16%, an increase of 1.55 percentage points year-on-year [6]. - The company is accelerating the transformation of traditional industries towards high-end, intelligent, and green development, launching ten digital management modules and establishing smart factories [6]. Strategic Initiatives - The parent company, China National Offshore Oil Corporation (CNOOC), is actively pursuing a seven-year action plan for oil and gas reserve increases, with production growth targets of 5.9%, 2.6%, and 3.8% for 2025 to 2027 [7]. - The company is enhancing its core capabilities in energy technology services, with significant growth in self-developed equipment and a shift towards value-driven operations [7].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a total revenue of 33.95 billion yuan in the first three quarters of 2025, a year-on-year increase of 0.8%, and a net profit attributable to the parent company of 2.85 billion yuan, up 6.1% year-on-year [4][5] - The company is focusing on cost reduction and efficiency improvement while enhancing its core capabilities, which is expected to drive long-term growth [6][7] - The company is actively responding to the "seven-year action plan" for oil and gas resource increase, which is anticipated to open up long-term growth opportunities [7] Summary by Sections Financial Performance - In Q3 2025, the company reported a total revenue of 11.35 billion yuan, a decrease of 5.7% year-on-year and 9.4% quarter-on-quarter, with a net profit of 1.02 billion yuan, down 4.5% year-on-year and 17.2% quarter-on-quarter [4][5] - The annualized ROE for the first three quarters was 20.5%, a decrease of 0.7 percentage points year-on-year, while the cost-to-profit margin improved to 9.6%, an increase of 0.6 percentage points year-on-year [5] Cost Management and Efficiency - The gross profit margin for the first three quarters was 16.16%, an increase of 1.55 percentage points year-on-year, reflecting the company's commitment to cost control and efficiency enhancement [6] - The company is advancing its traditional industries towards high-end, intelligent, and green transformations, with significant investments in digitalization and smart factory initiatives [6] Industry Outlook - The domestic oilfield service industry is expected to maintain a high level of prosperity due to the ongoing "resource increase" initiatives, which will benefit the company [8] - The company is enhancing its core capabilities through technological innovations and domestic replacements, which are expected to shift its growth from volume-driven to value-driven [7] Profit Forecast and Valuation - The company is projected to achieve net profits of 4.26 billion yuan, 4.70 billion yuan, and 5.22 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.42 yuan, 0.46 yuan, and 0.51 yuan [8][10]

Core Viewpoint - The company has demonstrated strong performance in the first half of 2025, achieving significant revenue and profit growth while focusing on its strategic goal of becoming a competitive, specialized, and innovative energy technology service company [1] Group 1: Financial Performance - In the first half of 2025, the company reported operating revenue of 22.597 billion yuan, a year-on-year increase of 4.46% [1] - The net profit attributable to shareholders reached 1.829 billion yuan, with a year-on-year growth of 13.15% [1] - The net assets increased to 27.621 billion yuan, reflecting a 1.69% rise compared to the end of the previous year [1] Group 2: Core Business Development - The energy technology service sector, as a core business, has seen solid capability building, contributing to oil and gas reserve increases and production [2] - The company implemented various advanced technologies, including intelligent injection and production operations, resulting in a 16.11% increase in downhole tool business workload [2] - The company has successfully launched several high-end oil and gas equipment and smart manufacturing bases, enhancing its core technology and high-end equipment supply capabilities [2] Group 3: Low-Carbon and Digitalization - The low-carbon and digitalization sector achieved operating revenue of 3.870 billion yuan, a year-on-year increase of 11.17% [3] - The company has successfully delivered offshore wind operation vessels, supporting market expansion in offshore wind maintenance services [3] - New material technology development and green low-carbon technology promotion have been accelerated, with a 29.02% increase in sales of refining catalytic materials [3] Group 4: Energy Logistics Services - The energy logistics service sector generated operating revenue of 11.640 billion yuan, reflecting a year-on-year growth of 5.13% [4] - The company has enhanced its operational support capabilities through smart logistics and lean sales strategies, with a 15.61% increase in commodity sales [4] - The company has effectively managed oil price fluctuations through differentiated operational strategies [4] Group 5: Future Growth and Innovation - The company is focusing on long-term growth by optimizing its industrial layout and planning for strategic emerging industries [5] - Significant advancements in core technology have been achieved, including the development of domestically produced deep-water intelligent flow control valves [7] - The company is actively exploring new business models and enhancing production organization to drive profitability [9] Group 6: Brand and Market Expansion - The company has established a comprehensive brand strategy, enhancing its product offerings and market presence [8] - New market centers have been set up to boost external market development, resulting in a 141% year-on-year increase in new contracts [8] - The company has successfully penetrated international markets, achieving breakthroughs in several countries [8]