SSC(600871) 光大证券·2024-10-25 08:38Investment Rating - The report maintains an "Accumulate" rating for both A-shares and H-shares of the company [1]. Core Views - The oil service industry is experiencing a recovery, and the company is enhancing its operational efficiency, leading to significant growth in performance for the first three quarters of 2024 [4]. - The company has achieved a substantial increase in new contract signings, with a total of 750.7 billion yuan, representing a year-on-year growth of 6.2% [5]. - The company is focused on improving investor returns through dividends and share buybacks, having repurchased 4.93 million H-shares for a total of 2.48 million yuan [6]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported total revenue of 54.9 billion yuan, a year-on-year decrease of 1.72%, while net profit attributable to shareholders reached 676 million yuan, up 52% year-on-year [3]. - In Q3 2024 alone, the company achieved revenue of 18.1 billion yuan, down 3.45% year-on-year, but net profit increased by 91% year-on-year to 224 million yuan [3]. Market Position and Strategy - The company is capitalizing on the upturn in the oilfield service sector, optimizing production operations, and enhancing engineering service capabilities [4]. - The company has expanded its market presence, particularly in overseas markets, with significant contracts in the Middle East, including a 7.956 billion yuan contract for the Saudi national gas pipeline project [5]. Operational Efficiency - The company has set clear cost reduction and efficiency improvement targets, achieving a cost reduction of 410 million yuan in the first half of 2024 [7]. - The gross profit margin for the first three quarters was 7.92%, an increase of 0.89 percentage points year-on-year, with an annualized ROE of 10.58%, up 3.04 percentage points year-on-year [4]. Future Outlook - The company expects to sign over 90 billion yuan in new contracts in 2024, laying a solid foundation for future revenue growth [5]. - The parent company, Sinopec, is maintaining high upstream capital expenditures, which will support the company's domestic business development [9].