Oil service enterprises in Xinjiang provide integrated drilling engineering technical services.
The company is located in Xinjiang, mainly engaged in drilling engineering technical services and other oilfield technical services in the process of oil and gas exploration and development, including drilling, cementing, drilling fluid, directional wells, underbalance and so on. It is an independent oil field service provider with large scale and can provide integrated drilling engineering technical services in China. The company's business mainly comes from Petrochina Company Limited Group, which is concentrated in Xinjiang oil field market. Affected by the sharp drop in international oil prices and the decline in Petrochina Company Limited's capital expenditure, the company's performance has continued to decline since 2014. In 2016, the company's operating income was 352 million yuan, down 18.11% from the same period last year, and the net profit attributed to the owner of the parent company was 36.46 million yuan, which was basically the same as the same period last year. In view of Xinjiang's special geographical location and resource endowment, the state has made it clear to build it into an important energy strategic replacement area and energy base, and Petrochina Company Limited also put forward a strategic plan to realize "Xinjiang Daqing". With the implementation of the "Belt and Road Initiative" strategy, the company is expected to enjoy the development opportunities brought by the surrounding markets.
The business of domestic oil service industry mainly revolves around "three barrels of oil".
Exploration and development investment usually accounts for 50% of the capital expenditure of oil field companies, while drilling engineering and technical services account for more than 50% of the investment in exploration and development. At present, the domestic oil service business is mainly carried out around Petrochina Company Limited, China Petroleum & Chemical Corp, CNOOC and other three major oil groups. Petrochina Company Limited's drilling workload accounts for most of the domestic drilling business, and its drilling services are mainly provided by the group's drilling companies. private enterprises, including companies, occupy a small share. With the gradual opening of the oil service market, it is expected that the market share of private oil service enterprises will continue to increase.
Fund-raising projects to improve the service capacity of the company
The company intends to raise 321 million yuan in this IPO for drilling engineering service capacity building, directional well technical service capacity building and supplementary liquidity. The implementation of the fund-raising project will further enhance the service capacity and level of the company's main business and lay the foundation for the company's long-term development.
Purchase proposal
Assuming that the total share capital of the company after IPO is 117.2 million shares, the diluted EPS of the company from 2016 to 2018 is expected to be 0.524 yuan, 0.599 yuan and 0.732 yuan respectively, and the corresponding PE of the issue price is 22.92,20.08,16.42 times.