SSC(600871) 光大证券·2024-08-19 08:03Investment Rating - The report maintains an "Accumulate" rating for the company in both A-shares and H-shares [2][55]. Core Viewpoints - The company is a leading integrated oilfield service provider in China, backed by over 60 years of operational experience and a comprehensive service capability across the entire oilfield service value chain [2][11]. - The global upstream capital expenditure is expected to remain high, with a projected 10.6% year-on-year growth in exploration and development investment in 2023, indicating a recovery in the oilfield service market [2][42]. - The company has significantly increased its overseas business, with notable growth in overseas revenue and new contracts due to its strategic partnerships along the Belt and Road Initiative [2][46]. - Continuous efforts to reduce costs and improve efficiency are underway, with targets to reduce workforce by over 3,000 and improve labor productivity by 8% in 2024 [2][50]. Summary by Sections Company Overview - The company is a major oil and gas engineering and technical service provider controlled by Sinopec Group, with operations in over 20 provinces in China and more than 30 countries overseas [2][11]. Business Segments - The company operates in five main business segments: geophysical services, drilling engineering, logging, downhole special operations, and engineering construction, covering the entire oil and gas production process [2][24]. Market Conditions - The global oilfield service market is expected to peak at $1 trillion by 2025, driven by simultaneous growth in traditional and renewable energy investments [2][45]. Overseas Market Expansion - The company has actively expanded its overseas market presence, achieving significant growth in overseas revenue and new contracts, particularly in the Middle East and South America [2][46]. Cost Reduction and Efficiency Improvement - The company aims to enhance operational efficiency by optimizing human resources and asset management, with a goal to reduce costs by approximately 650 million RMB in 2024 [2][50]. Financial Performance - The company forecasts a steady increase in net profit, with expected figures of 1.008 billion, 1.262 billion, and 1.450 billion RMB for 2024, 2025, and 2026 respectively [2][55].