\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 808 China Oilfield Services Limited(601808) )
Key investment points
Q1 performance + 67.7% year-on-year, deducting non performance + 76.5% year-on-year: in the first quarter of 2022, the company achieved a total operating revenue of 6.798 billion yuan, a year-on-year increase of + 15.2%; The net profit attributable to the parent company was 304 million yuan, a year-on-year increase of + 67.7%; Deduct the net profit not attributable to the parent company of RMB 267 million, a year-on-year increase of + 76.48%. Under the high oil price, the industry recovered, and the workload and profit elasticity continued to appear.
Profitability continued to improve, and the expense rate was well controlled during the period: 2022q1, the company’s gross profit margin was 10.8%, year-on-year + 0.6pp. In terms of period expense rate, Q1 sales expense rate is 0.1%, year-on-year + 0.0pp; The management expense ratio was 2.3%, with a year-on-year increase of -0.4pp; The financial expense rate was 3.0%, year-on-year + 0.8pp; The R & D expense rate was 2.8%, with a year-on-year increase of -0.3pp; The total period expense rate was 8.1%, year-on-year + 0.1pp.
The utilization rate of drilling platform continues to improve, and it is optimistic that the workload of the sector will continue to recover: in 2022q1, the number of operating days of the company’s drilling platform is 3922 days, a year-on-year increase of + 19.2%. Among them, the utilization rate of jack up drilling platform was 89.4%, with a year-on-year increase of + 19.2pp; The utilization rate of semi submersible drilling platform was 66.1%, with a year-on-year increase of -2.2pp. With the continuous rise of the international oil price center, the workload of China and overseas is expected to continue to recover, and we are optimistic about the profit elasticity of the drilling platform sector.
Heavy assets to heavy technology butterfly change, oil technology sector continued to make breakthroughs: previously, under the center of low and medium oil prices, the company took oil technology services as the main profit point to realize the butterfly change from heavy assets to heavy technology. In recent years, the company has made breakthroughs in the research and development of key oil technology. For example, two scientific and technological achievements, including rotary steering and high-temperature logging, were selected into the catalogue of innovation achievements of central enterprises. The self-developed “Xuanji” rotary steering and logging while drilling system has full specification field operation capability and has successfully entered the overseas market.
Investment suggestion: benefiting from the continuous rise of the oil price center, the company is expected to shoulder the global leader in comprehensive oil services, and is optimistic about the profit elasticity brought by the recovery of drilling platform utilization. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.72/3.54/4.02 billion respectively, corresponding to 21, 16 and 14 times of PE, maintaining the “buy” rating.
Risk tip: the international oil price fluctuates sharply, the capital expenditure of oil companies is less than expected, and the repeated epidemic makes the demand recovery less than expected
