JP Morgan: SINOPEC SEG(02386) orders grow strongly, leading the industry in first choice.

JPMorgan released a research report stating that some individual stocks in the Chinese oilfield service and oil & gas engineering sectors have outperformed the industry average and the increase in Brent oil prices over the past six months. This is mainly due to the record high new order volume, stable order backlog, good delivery capabilities, as well as the stable capital expenditure of Chinese oil companies and improving outlook for overseas market new orders. JP Morgan listed SINOPEC SEG (02386) as the top pick in the industry, expecting that with its strong order growth momentum, it can achieve steady income and profit growth, with an expected dividend yield of 6% to 7%. The target price has been raised from 7.1 Hong Kong dollars to 8.4 Hong Kong dollars, with a rating of "overweight." The bank also noted that CHINA OILFIELD (02883) is expected to see a 20% year-on-year increase in profit for the 2025 fiscal year due to improved capacity utilization and order terms, with its H-share target price lowered from 11 Hong Kong dollars to 10.4 Hong Kong dollars, with a rating of "overweight." The bank maintains an "overweight" rating for SINOPEC SSC (01033) and Offshore Oil Engineering (600583.SH), believing that SINOPEC SSC has well-controlled costs and improved shareholder returns, while Offshore Oil Engineering recently secured a new contract with Qatar Energy Company. The target price for SINOPEC SSC H-shares has been raised from 0.92 Hong Kong dollars to 1 Hong Kong dollar, and the target price for Offshore Oil Engineering has been raised from 6.4 Chinese Yuan to 7.1 Chinese Yuan.