SSC(600871) 光大证券·2025-03-19 11:15Investment 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 value in 2024, with a total of 912 billion yuan, representing a year-on-year increase of 10.7% [6]. - The company’s total revenue for 2024 was 811 billion yuan, a year-on-year increase of 1.39%, and the net profit attributable to shareholders was 6.32 billion yuan, up 7.19% year-on-year [4]. - The company is expected to benefit from the ongoing boom in the oil service industry and the high upstream capital expenditure from its parent company [9]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 811 billion yuan, with a net profit of 6.32 billion yuan [4]. - The gross profit margin improved to 7.81%, an increase of 0.57 percentage points year-on-year [5]. - The return on equity (ROE) was 7.58%, slightly down by 0.02 percentage points year-on-year [5]. Market Expansion - The company has significantly expanded its market presence, with new contracts in the domestic and overseas markets [6]. - The new contract value from the overseas market reached 243 billion yuan, a year-on-year increase of 45.5% [6]. - The company expects new contract values to remain high in 2025, projecting a total of 835 billion yuan [6]. Cost Reduction and Efficiency Improvement - The company has implemented effective cost reduction measures, optimizing human resources and asset management [7]. - The operating cost per hundred yuan of revenue decreased by 0.57 yuan year-on-year [7]. - The company aims to enhance its low-cost competitiveness through lean management practices [7]. Future Outlook - The company’s net profit is projected to grow steadily, with estimates of 8.10 billion yuan for 2025, 10.01 billion yuan for 2026, and 12.28 billion yuan for 2027 [10]. - The expected earnings per share (EPS) for 2025 is 0.04 yuan, increasing to 0.06 yuan by 2027 [10]. - The report anticipates continued growth in the oil service sector, supported by increasing global upstream capital expenditures [9].