SSC(600871) 光大证券·2025-03-19 07:23Investment Rating - The report maintains an "Accumulate" rating for both A-shares and H-shares of the company [1]. Core Views - The company achieved a record high in new contract signing in 2024, with a total of 912 billion CNY, representing a year-on-year increase of 10.7% [6]. - The company’s operating revenue for 2024 was 811 billion CNY, a slight increase of 1.39% year-on-year, while the net profit attributable to shareholders was 6.32 billion CNY, up 7.19% year-on-year [4][10]. - The company is expected to benefit from the ongoing high demand in the oil service industry and the sustained capital expenditure from its parent company [9]. Summary by Sections Financial Performance - In Q4 2024, the company reported an operating revenue of 262 billion CNY, which is an increase of 8.59% year-on-year and 45.11% quarter-on-quarter [4]. - The gross profit margin for 2024 was 7.81%, an increase of 0.57 percentage points year-on-year, while the return on equity (ROE) was 7.58%, a slight decrease of 0.02 percentage points [5]. Market Expansion - The company has significantly expanded its market presence, particularly in overseas markets, with new contracts in the Middle East, including a 10-year extension for 11 drilling rigs in Saudi Arabia [6]. - The forecast for new contracts in 2025 is set at 835 billion CNY, indicating continued strong demand [6]. Cost Reduction and Efficiency - The company has implemented effective cost reduction measures, optimizing human resources and reducing non-productive expenses, leading to a decrease in operating costs [7]. - The company’s management has focused on lean management practices, resulting in a reduction of 124 teams and 271 project departments throughout the year [7]. Future Outlook - The company’s net profit is projected to grow steadily, with estimates of 8.10 billion CNY for 2025, 10.01 billion CNY for 2026, and 12.28 billion CNY for 2027 [10]. - The expected earnings per share (EPS) for 2025, 2026, and 2027 are 0.04 CNY, 0.05 CNY, and 0.06 CNY respectively [10].