The Zhitong Finance App learned that the first Shanghai released a research report stating that it gave CNOOC (00688) a “buy” rating and predicted that the company's revenue for 2024-2026 would be 451.4 billion yuan/471 billion/ 481.7 billion yuan, respectively; net profit to mother would be 145.2 billion yuan, 151.2 billion yuan, and 155.4 billion yuan, respectively. The bank gave the company an eight-fold PE valuation in 2024, with a target price of HK$26.43.

First, Shanghai's main views are as follows:

Net profit reached a record high for the same period:

The company achieved operating income of 226.8 billion yuan in the first half of the year, an increase of 18% over the previous year; net profit attributable to shareholders of listed companies was 79.7 billion yuan, an increase of 25% over the previous year. Among them, the company achieved revenue of 115.3 billion yuan in Q2, up 22% year on year and 3.4% month on month; realized net profit of 40 billion yuan, up 26% year on year and 0.7% month on month, and net profit reached the best level in history.

Increase storage and production to enhance competitiveness:

The company's total oil and gas production in the first half of the year reached 362.6 million barrels of oil equivalent, an increase of 9.3% over the previous year. In the first half of the year, oil prices reached 80.32 US dollars/barrel, up 9.2% year-on-year, and gas prices reached 7.79 US dollars/thousand cubic feet. The company's revenue from petroleum liquid products reached 161.3 billion yuan in the first half of the year, up 24% year on year; revenue from natural gas products reached 23.9 billion yuan, up 9.7% year on year. Sales of liquid petroleum products reached 282.1 million barrels, up 10.9% year on year; sales volume of natural gas products reached 431.1 billion cubic feet, up 11.7% year on year. The company continues to increase storage and production. The goal is to ensure that the reserve replacement rate is not less than 130%, achieve the 24-year production target of 700-720 million barrels of oil equivalent, and continue to reduce costs and increase efficiency, increasing the company's profits.

The year-on-year decline in barrel oil costs:

The company's barrel oil cost advantage continues to lead the industry. The main cost of the company's barrel oil in the first half of the year was 27.75 US dollars/barrel oil equivalent, down 1.5% from the previous year. Among them, operating costs decreased by 4.8%, which was mainly affected by a combination of production growth and exchange rate changes. Depreciation, depreciation and amortization fell 1.4% year over year, mainly affected by exchange rate fluctuations. At the same time, cost control led to a 6.8% reduction in sales and management expenses. Taxes other than income tax increased 10.2% year over year, mainly due to the combined effects of confirming the proceeds of mining concessions and rising oil prices.

Dividend repurchases combine multiple measures:

The company actively rewards shareholders and shares development and operation results with shareholders. The 24-year interim dividend was HK$0.74 per share (tax included), a record high for the same period. The interim dividend payout ratio was 40.3%, and the interim dividend per share increased 25.4% year over year. At the same time, the company carried out repurchases in the Hong Kong stock market. A total of 16.366 million shares were repurchased and cancelled four times.