Macquarie: maintains "outperform" rating on CHINA OILFIELD (02883) with a target price of 12.1 Hong Kong dollars.

Macquarie released a research report stating that it maintains a "outperform" rating on CHINA OILFIELD (02883), with a target price of HK$12.1. The bank believes that stable growth in oilfield services and a solid order channel for semi-drilling platforms will drive the group's growth in 2025. The current valuation is 5.4 times and 5 times the forecasted P/E ratio for 2025/26, which is still reasonable. The report indicates that China Oilfield Services had strong performance in the first quarter of 2025, with a 6% year-on-year increase in revenue and a 40% year-on-year increase in net profit. Drilling services saw strong growth, benefiting from an increase in domestic workload and the signing of new contracts for semi-drilling platforms in Norway. The group announced stable growth in oilfield services revenue in the first quarter of 2025, with profit margins similar to the same period last year. However, due to lagging product sales last year and additional equipment costs that will be compensated through insurance later this year, the profit contribution from oilfield services has slightly decreased compared to last year.