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MI能源(1555.HK):油气价格趋稳 收购CQ ENERGY料有助改善业绩;首予「中性」评级

MI Energy (1555.HK): Oil and gas prices are stabilizing, and the acquisition of CQ ENERGY is expected to help improve performance; first rated “neutral”

致富證券 ·  Nov 17, 2017 00:00  · Researches

Balance between supply and demand of crude oil-the price of crude oil has been stable in the last year since the cliff decline occurred in mid-2014. at present, the main positive factors in the crude oil market are the crude oil production agreement reached by OPEC members to restrict the supply of crude oil, and the overall global economic downturn has led to an increase in crude oil demand, but the rising space for crude oil is also limited by the rising crude oil output of the United States. Therefore, it is expected that the wrestling between these weak factors will continue, and the pattern of rising and falling oil prices will remain unchanged in the coming year, hovering between US $50 and US $60 per barrel.

Natural waste materials can be picked up-in the last six months, the annual rate of natural cycle has dropped by about 10%, mainly because, according to Baker Hughes data, as of October 13 this year, there were 285 natural fish wells in the United States and Canada, and more than 105 in the same period last year, greatly dragging down the natural cycle. However, in China, which is affected by air pollution, China's strong demand for natural commodities, coupled with the continuation of the process of coal production in the United States, is expected to increase the demand for natural commodities. The International Energy Agency (IEA) also said earlier in the 2017 Natural pollution report that it would increase the annual growth rate of natural demand from 0.1% to 1.6% between this year and 2022. Therefore, it is expected that there will be an improvement in the natural market in the coming year.

The acquisition of CQ Energy will help balance the combination of oil and gas products-CQ Energy has a lot of undeveloped land equipment to increase the production of natural resources, while the collection of CQ Energy will help to centralize its responsibilities to the world, balance the combination of oil and gas products and increase collection income. However, in the short term, more funds may need to be invested to increase the output of CQ Energy, and at that time, its hand fund is limited, so it is faced with the shortage of capital. However, it is found that CQ Energy has recorded financial inflows in all three administrative years, coupled with its own financing capacity, which will help it to pay future capital. As a result, the expected CQ Energy contribution to the collection is limited.

Investment strategy-MI Energy may improve overall profitability by collecting CQ Energy, but its positive effect may take a long time to reflect. On the other hand, short-term consumption is still affected by crude oil and natural oil waves. At that time, the energy situation is generally stable, and it is believed that the profit statement of the market is not very happy, and investors can look forward to it first.

The translation is provided by third-party software.


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