COOEC(SH:600583)2024-12-02 07:35Group 1: Company Overview and Operations - The company has been engaged in the EPC construction field for 18 years, initially focusing on domestic oil and gas production enhancement, now offering four product categories: traditional installation, floating products (FPSO, Semisub, TLP), modular products (LNG and refining modules), and renewable energy projects [2]. - The company aims to enhance engineering construction standardization and integration to improve quality, reduce costs, and increase efficiency, targeting a conservative efficiency improvement of over 15% in the Bohai Sea region [2]. Group 2: Financial Performance and Projections - The company has maintained a stable profit margin of around 12% for overseas projects over the past two years, with a market size of 15-20 billion CNY annually from China National Offshore Oil Corporation (CNOOC) [3]. - The company expects to achieve a revenue target of 60 billion CNY by 2035, relying heavily on overseas markets due to the stable domestic market [3]. Group 3: Market Conditions and Future Plans - The company is currently experiencing high workload saturation, with a slight decrease in contract volume expected in Q4 and Q1 of the following year, but anticipates a recovery in Q2 [3]. - Future investments will focus on developing new products, including deep-sea oil trees, and expanding into maintenance services, which were previously handled by other units within the CNOOC [3]. Group 4: Investor Relations and Shareholder Value - The company is considering stable dividend increases and share buybacks, believing that the current stock price does not reflect its operational quality [3]. - The company has a cash flow that supports its financial strategies, aiming for a positive cash flow throughout project cycles, with a 10% upfront payment upon contract signing [2].