Investment Rating - The investment rating for the company is "Buy" for both A and H shares, maintained from previous assessments [8]. Core Views - The company reported a revenue of 156.61 billion RMB for 2025, a decrease of 11.85% year-on-year, with a net profit attributable to shareholders of 2.21 billion RMB, down 92.57% year-on-year. The fourth quarter of 2025 saw revenues of 39.55 billion RMB, reflecting a year-on-year decline of 18.78% and a quarter-on-quarter decline of 3.47% [1]. - The marine engineering segment is expected to benefit from the rising demand for deepwater oil and gas development, with a significant increase in profitability, achieving a revenue of 17.94 billion RMB in 2025, up 8.35% year-on-year, and a net profit of 1.06 billion RMB, up 371.79% year-on-year [3]. - The modular AIDC business is experiencing rapid growth, with the company providing prefabricated data center solutions that reduce project delivery time by over 50% [5]. - The company has adjusted its net profit forecasts for 2026 and 2027 upwards by 11% and 24% respectively, predicting net profits of 4.02 billion RMB and 4.99 billion RMB [6]. Financial Summary - The gross margin for 2025 was 12.45%, a slight decrease of 0.07 percentage points year-on-year, primarily due to increased competition and exchange rate impacts in the container business, although profitability in the energy sector helped offset this decline [2]. - The company’s financial expenses increased due to higher exchange losses, with a financial expense ratio of 1.30%, up 0.53 percentage points year-on-year [2]. - The company’s total orders on hand reached a value of 5.09 billion USD by the end of 2025, with a focus on high-value oil and gas orders [3]. - The average daily rate for semi-submersible and jack-up drilling platforms increased year-on-year, with new contracts expected to significantly contribute to performance elasticity [4].

Fleet and Operations - The company has a modern jackup fleet with an average age of approximately 6 years[7] - The fleet utilization is at 100%[7] - The company's Q2 2023 Adjusted EBITDA margin was 45%[7] - The company's contract backlog is $1.83 billion[7] - The company's Q2 2023 technical uptime was 98.7%[37] Market Dynamics - Modern jackup rig utilization is back at 2014 levels, reaching 93.7%[13] - Over 30% of the global jackup fleet is over 30 years old, with over 150 jackups retired since 2015, averaging 38 years of age at retirement[18] - The orderbook for new jackup rigs is at a record low, representing approximately 3% of the total fleet[22] Financial Outlook - The company has 75% contract coverage for 2024 at an average dayrate of $129k/day[29] - The company has 53% contract coverage for 2025 at an average dayrate of $130k/day[29] - The company has 18% contract coverage for 2026-2028 at an average dayrate of $125k/day[29]