ZPEC(603619) 长江证券·2024-07-25 03:01Investment Rating - The investment rating for the company is "Buy" and is maintained [17]. Core Insights - The chairman's increase in shareholding reflects confidence in the company's long-term investment value and future development prospects, with a planned increase of no less than 50 million RMB and no more than 100 million RMB within 12 months [17]. - The company has significant growth potential due to its rich oil reserves and ongoing projects, including successful bids for oil blocks in Iraq, which will ensure high-quality and sustainable development [6][17]. - The company benefits from low extraction costs, with direct oil production costs at 12.97 USD per barrel and total costs at 23.75 USD per barrel, which are significantly lower than major oil-producing countries [17]. Summary by Sections Oil Production and Reserves - The company has seen a steady increase in oil production, with the Wensu oilfield producing 581,000 tons in 2023 and significant geological reserves identified [5]. - The Kenge oilfield in Kazakhstan has geological reserves of 78.54 million tons, currently in the early development stage [5]. Future Growth Opportunities - The successful bidding for the East Baghdad Field Northern Extension and Middle Euphrates blocks in Iraq provides the company with substantial future growth opportunities [6]. - The company is positioned as the first private enterprise in China to own independent oilfields, projecting net profits of 1.18 billion RMB, 1.55 billion RMB, and 1.76 billion RMB for 2024-2026, respectively [18]. Financial Projections - The company's total revenue is projected to grow from 3.732 billion RMB in 2023 to 6.253 billion RMB in 2026, with a gross profit margin increasing from 46% to 55% over the same period [26]. - The net profit attributable to shareholders is expected to rise from 810 million RMB in 2023 to 1.756 billion RMB in 2026, indicating strong profitability growth [26].