Event: according to the company's semi-annual report for 2021, H1 achieved revenue of 31.57 billion yuan in 21 years, + 0.4% year-on-year, and net profit of 369 million yuan, + 23.6%, of which Q2 achieved revenue of 16.97 billion yuan in a single quarter,-8.6% year-on-year and + 16.2% compared with the same period last year. The net profit of returning to the mother was 203 million yuan,-57.8% and 22.5% respectively.
Comments:
The rebound in crude oil prices led to the growth of the company's performance, and the oil service industry recovered: the international oil price rose in the first half of 2021, and the average oil price in the first half of 2021 was 65 US dollars per barrel, an increase of 55% over the same period last year, driving the continuous recovery of the oil service market and helping the company achieve high growth in H1 performance in 21 years. However, due to the overall downturn in overseas markets, the company's Q2 performance has declined. Among them, the revenue of the geophysical exploration service plate reached 1.8 billion yuan,-0.4% compared with the same period last year; the revenue of the drilling service plate reached 15.71 billion yuan,-7.1% compared with the same period last year; the logging service plate realized 1.15 billion yuan, + 1.1% compared with the same period last year; the revenue of the downhole special operation service plate reached 3.94 billion yuan, + 4.2% compared with the same period last year; and the revenue of the engineering construction service plate reached 7.87 billion yuan, + 15.8% compared with the same period last year. With the recovery of the crude oil industry chain, the prosperity of the oil service industry is expected to continue to rise.
Continue to consolidate the traditional market and strive to expand the new market: in 2021, H1, the company completed a total of 7.89 billion yuan in contracts, + 10.0% last year, and 14.46 billion yuan in newly signed contracts, + 62.3% in the same period last year. We will make every effort to promote the construction of key projects such as the China-Russia East Line of the State Pipe Network Company and the Jiangsu Binhai LNG project. At the same time, under the overall downturn in the overseas market, due to the insufficient workload of Saudi Aramco, the company actively approached Halliburton and successfully signed the coiled tubing service subcontract project. won the bid for Saudi Aramco, Kuwait Oil Company and other companies. According to the 21 semi-annual report, the company expects to sign 26.2 billion yuan of new contracts in the second half of the year, including 17.7 billion yuan for China Petroleum & Chemical Corp Group's market, 4.8 billion yuan for domestic and external markets, and 3.7 billion yuan for overseas markets.
Striving for the first share of A-share CCUS, the market prospect of CCUS is huge: under the background of carbon neutralization, it is of great significance to develop CCUS technology, which is a necessary link for our country to achieve the goal of carbon neutralization. Petrochemical CCUS project is China's first million-ton CCUS project, the company is expected to become the first A-share CCUS project listed company, is a well-deserved A-share CCUS layout vanguard. The project is expected to be put into production by the end of 21 years, and it is expected that in the next 15 years, a total of 10.68 million tons of carbon dioxide can be injected and 2.965 million tons of oil can be increased. In addition, the EU carbon price, China's carbon price is still low, in the future, with China's increasing efforts to reduce carbon emissions, carbon emissions trading market continues to improve, the CCUS market space may exceed 100 billion yuan.
Profit forecast, valuation and rating: we maintain the company's profit forecast for 2021-2023, and expect the company's net profit for 2021-2023 to be 6.56 soybean 11.36 / 1.413 billion yuan respectively, corresponding to 0.03 EPS 0.06 pound 0.07 yuan. Maintain the "overweight" rating on the company's A shares and H shares.
Risk hint: market competition risk, overseas operation risk, exchange rate risk.