The company's 14H1 net profit fell 563% compared with the same period last year.
The company announced 14H1 results, with operating income of 148 million yuan (down 12% from the same period last year), net profit attributed to the parent company-7.36 million yuan (down 563% from the same period last year), EPS-0.03 yuan, and operating cash flow per share-0.44 yuan. During the reporting period, the company's main customers, Petrochina Company Limited Xinjiang Oilfield and Tarim Oilfield, reduced capital expenditure, resulting in a year-on-year decline in performance.
Gross profit margin and period expense rate are basically the same as the same period last year.
In the past 13 years, the company's comprehensive gross profit margin was 6.5%, down 9% from the same period last year, mainly due to the decline in the volume of work and the settlement price of some business under the background of the decline in Petrochina Company Limited's capital expenditure, resulting in a decline in income. During the period, the expense rate decreased by 3.2 percentage points to 10.7% compared with the same period last year, mainly due to the adjustment of institute expenses from management expenses to operating cost accounting during the reporting period, resulting in a 2.8% year-on-year decrease in the management expense rate to 9.5%.
Enjoy the dividend of Xinjiang oil and gas reform, Kazakhstan has broad space for oil and gas business development.
The anti-corruption of domestic oil and gas system affects the capital expenditure of oil companies, thus creating valuation pressure on the oil service sector. We believe that as the anti-corruption of the oil and gas system has come to an end, the valuation of the whole sector is being repaired, and the main logic of our optimistic company remains unchanged: (1) the local oil service companies in Xinjiang are expected to enjoy the reform dividend. The central government focuses on building the new Silk Road Economic Belt, and Xinjiang is the core region; the field of energy development is the main economic pillar of Xinjiang, and there are expected to be sustained policies in the future (especially in the field of oil and gas development). And more inclined to support local enterprises in Xinjiang; the company is one of the largest private oil service enterprises in Xinjiang and is expected to enjoy the reform dividend.
(2) the development space and performance flexibility of oil and gas business in Kazakhstan is huge. The company is carrying out oil and gas business in Kazakhstan, and the progress is basically in line with market expectations; the degree of oil and gas development in Kazakhstan is relatively low, and the company's comprehensive integrated development and management capability of inefficient oilfields is relatively scarce in the oil and gas field of Kazakhstan, so the development space and performance flexibility of the company's oil and gas business in Kazakhstan is huge.
Maintain a "buy" rating.
Maintain the company's 14-16 EPS diluted forecast of 0.22,0.42 and 0.54 yuan, respectively, and maintain the "buy" rating.
Risk hint: the risk that the progress of Kazakhstan's oil and gas business is not as expected.