GLONGHUI July 14 | Guolian Securities's research report on the 13th pointed out that the company's performance of Zhongman Petroleum (603619.SH) increased dramatically in the first half of 2023, mainly as a result of the accelerated growth of the exploration business and the upward resonance between the upward trend in the oil service engineering business. Looking at the single quarter, the company achieved net profit of 218-238 million yuan in Q2 in '23, an increase of 56%-70% over the previous year, and an increase of 3%-12% month-on-month. The single-quarter results reached another record high. In terms of exploration business, the company focuses on actively exploiting integrated advantages, speeding up exploration and evaluation of the Wensu block, carrying out work to stabilize oil field production and increase production, and do a good job in geological research, exploration deployment, reserve research and new well commissioning. The company's Wensu project achieved crude oil production of 2751 million tons in the first half of 2023, an increase of 77,200 tons over the same period last year, an increase of 39.01% over the same period last year, and crude oil sales revenue continued to grow. The oil service engineering business benefited from increased international oil and gas exploration capital expenditure and continued to rise. The operating rate of the company's overseas drilling rigs increased sharply year on year, and the revenue of the engineering sector increased dramatically year over year. At the same time, the company optimized management, strictly controlled costs and expenses, and achieved obvious results in reducing costs and increasing efficiency. In view of the rapid advancement of the company's core exploration business and large room for growth, the bank maintained the company's target price of 28.48 yuan and maintained its “buy” rating.