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China Oilfield Services Class H (HK:2883)
:2883
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China Oilfield Services (2883) AI Stock Analysis

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HK:2883

China Oilfield Services

(OTC:2883)

Rating:68Neutral
Price Target:
HK$7.50
▲(6.53%Upside)
China Oilfield Services is well-positioned within its industry, with strong financial performance and attractive valuation. The bullish technical indicators suggest strong market momentum, though potential overbought conditions could pose a risk. The stock offers a good balance between growth and income potential.

China Oilfield Services (2883) vs. iShares MSCI Hong Kong ETF (EWH)

China Oilfield Services Business Overview & Revenue Model

Company DescriptionChina Oilfield Services Limited (COSL), listed on the Hong Kong Stock Exchange under the ticker 2883, is a leading provider of oilfield services in the offshore oil and gas industry. The company primarily operates in sectors such as drilling services, well services, marine support services, and geophysical services. COSL delivers a comprehensive range of services including exploration, development, and production support for oil companies, with a strong focus on technological innovation and operational efficiency.
How the Company Makes MoneyChina Oilfield Services Limited generates revenue through a diversified portfolio of oilfield services. The company's key revenue streams include drilling services, where it provides offshore drilling rigs and related services to explore and extract oil and gas. Well services contribute to revenue by offering services such as logging, cementing, and testing to enhance oil well productivity and safety. Marine support services provide logistics, transportation, and supply chain services essential for offshore operations. Geophysical services, which involve seismic data acquisition and interpretation, help oil companies identify potential oil and gas reserves. COSL's earnings are significantly influenced by its strategic partnerships with major national and international oil companies, enabling it to secure long-term contracts and maintain a steady revenue flow. Additionally, fluctuations in global oil prices and exploration activity levels are critical factors impacting its financial performance.

China Oilfield Services Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q3-2024)
|
% Change Since: 22.54%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While COSL maintained stable profits and showcased strong performance in the well service segment and R&D investment, it faced challenges from exchange rate fluctuations and decreased rig utilization due to weather conditions. The management's positive outlook for overseas market opportunities adds a sense of optimism.
Q3-2024 Updates
Positive Updates
Stable Profit Despite Weather Impact
COSL reported stable profits despite the influence of adverse weather conditions affecting operations.
Well Service Business Performance
Well service business accounted for 56% of revenue and 76-77% of profit, showing strong performance as a leading business segment.
R&D Investment
COSL increased its R&D investment from CNY 1.7 billion to almost CNY 2 billion, representing about 4% of revenue.
Positive Outlook for Overseas Markets
Management expressed confidence in the overseas market, particularly in Norway and Saudi Arabia, with higher anticipated revenues and margins in the upcoming year.
Negative Updates
Exchange Rate Fluctuation Losses
The company experienced a loss of CNY 200 million due to exchange rate fluctuations between the Chinese yuan and the U.S. dollar.
Decreased Utilization of Semi-Submersible Rigs
Utilization of semi-submersible rigs was lowered due to typhoons in China and preparation work for a project in Brazil, affecting overall utilization rates.
Impact of Weather on Rigs
The adverse weather conditions led to approximately 100 lost rig days, affecting 10 rigs to varying extents.
Company Guidance
During the COSL Q3 2024 earnings call, the company provided guidance on several key metrics and strategic initiatives. The management discussed the impact of exchange rate fluctuations, revealing a loss of approximately CNY 200 million due to the appreciation of the Chinese yuan from 7.1 to 7.0 against the U.S. dollar. The well service segment contributed significantly to the company's performance, accounting for around 56% of revenue and nearly 80% of profit. Despite a lowered utilization rate of semi-submersible rigs in Q3, influenced by typhoons in China, the company expressed optimism for improved utilization in Q4, especially with projects in the North Sea and Saudi Arabia. COSL plans to continue investing in R&D, with expenditures expected to increase beyond the CNY 2 billion spent last year. The company remains confident about future overseas market prospects, anticipating stable growth in the oil and gas industry and a positive impact from new projects in Brazil and Norway. Additionally, the management discussed the potential for stock repurchase activities, influenced by national policies encouraging central enterprises to buy back shares.

China Oilfield Services Financial Statement Overview

Summary
China Oilfield Services demonstrates solid financial health with consistent revenue growth and strong profit margins. The balance sheet is stable with manageable leverage and good equity levels. However, the decline in free cash flow growth suggests potential cash generation challenges.
Income Statement
78
Positive
China Oilfield Services has shown consistent revenue growth with a solid TTM revenue increase of 1.34%. Gross profit margin stands at a robust 15.97%, while net profit margin is strong at 6.92%. The company demonstrates healthy operational efficiency with an EBIT margin of 10.37% and an EBITDA margin of 11.34%. These figures signal strong profitability and operational stability.
Balance Sheet
65
Positive
The debt-to-equity ratio is moderate at 0.23, indicating prudent leverage. Return on equity is decent at 7.58%, reflecting effective utilization of shareholder funds. The equity ratio is solid at 53.62%, suggesting financial stability, though there is room for improvement in asset efficiency.
Cash Flow
72
Positive
The free cash flow growth rate is negative, indicating challenges in cash generation. However, the operating cash flow to net income ratio is healthy at 0.75, suggesting cash flow reliability. The free cash flow to net income ratio is also strong at 0.14, underscoring effective cash management despite the decline in free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue48.95B48.30B44.11B35.66B29.20B28.96B
Gross Profit7.82B7.58B7.00B4.38B4.79B6.67B
EBITDA5.55B10.56B9.75B7.92B5.91B8.45B
Net Income3.39B3.14B3.01B2.36B313.18M2.70B
Balance Sheet
Total Assets83.38B82.95B83.25B77.18B73.31B75.94B
Cash, Cash Equivalents and Short-Term Investments7.87B11.47B12.72B9.23B10.82B12.13B
Total Debt10.24B10.09B21.62B22.22B23.44B25.81B
Total Liabilities38.01B38.52B40.99B37.29B35.10B37.25B
Stockholders Equity44.71B43.80B41.64B39.33B38.03B38.51B
Cash Flow
Free Cash Flow460.03M4.99B3.62B2.76B3.67B3.36B
Operating Cash Flow2.55B11.02B13.10B6.90B7.42B7.55B
Investing Cash Flow-393.98M-5.08B-7.46B-3.73B-4.73B-3.34B
Financing Cash Flow-5.79B-6.46B-3.28B-4.87B-4.20B-727.05M

China Oilfield Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.04
Price Trends
50DMA
6.50
Positive
100DMA
6.24
Positive
200DMA
6.51
Positive
Market Momentum
MACD
0.16
Negative
RSI
64.38
Neutral
STOCH
78.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2883, the sentiment is Positive. The current price of 7.04 is above the 20-day moving average (MA) of 6.79, above the 50-day MA of 6.50, and above the 200-day MA of 6.51, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 78.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2883.

China Oilfield Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$4.20B15.447.26%1.72%5.43%20.64%
68
Neutral
HK$58.13B9.797.81%0.57%7.72%2.35%
63
Neutral
HK$1.39B6.638.83%4.62%-20.69%-30.40%
59
Neutral
HK$293.48M9.560.86%7.69%-81.72%
57
Neutral
HK$86.82B3.97-2.25%3.24%-4.44%-41.07%
53
Neutral
$4.38B-45.09%30.81%2.97%
41
Neutral
HK$8.24B1,816.33-5.55%0.73%-16.30%-156.80%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2883
China Oilfield Services
6.98
0.46
6.99%
HK:1921
Dalipal Holdings Limited
5.47
1.19
27.80%
HK:1623
Hilong Holding Ltd.
0.17
0.06
53.10%
HK:0568
Shandong Molong Petroleum Machinery
4.11
3.13
319.39%
HK:3303
Jutal Offshore Oil Services
0.66
0.13
24.53%
HK:3337
Anton Oilfield Services Group
1.41
0.85
149.56%

China Oilfield Services Corporate Events

China Oilfield Services Approves Key Resolutions at Annual Meetings
May 22, 2025

China Oilfield Services Limited successfully held its Annual General Meeting and H Shareholders’ Class Meeting on May 22, 2025, where all proposed resolutions were passed. The meetings, attended by a significant portion of shareholders, approved key resolutions such as the audited financial statements, profit distribution plan, and reports from the Board of Directors and Supervisory Committee, indicating strong shareholder support and compliance with legal and regulatory requirements.

The most recent analyst rating on (HK:2883) stock is a Buy with a HK$11.00 price target. To see the full list of analyst forecasts on China Oilfield Services stock, see the HK:2883 Stock Forecast page.

China Oilfield Services Updates Final Dividend Details for 2024
May 22, 2025

China Oilfield Services Limited announced an update on its final cash dividend for the year ended December 31, 2024. The dividend is set at RMB 0.2306 per share, with a payment date of June 30, 2025. The update includes details on the exchange rate, withholding tax, and payment logistics, reflecting the company’s commitment to maintaining transparency and shareholder value. This announcement may impact the company’s financial positioning and shareholder relations, particularly concerning tax implications for non-resident shareholders.

The most recent analyst rating on (HK:2883) stock is a Buy with a HK$11.00 price target. To see the full list of analyst forecasts on China Oilfield Services stock, see the HK:2883 Stock Forecast page.

China Oilfield Services Announces 2025 AGM with Key Resolutions
Apr 29, 2025

China Oilfield Services Limited has announced its Annual General Meeting (AGM) scheduled for May 22, 2025, where key resolutions will be considered. These include approving financial statements, profit distribution, re-appointment of directors, and extending US Dollar loans. The meeting will also address the issuance of overseas-listed shares, which could impact the company’s capital structure and market positioning.

China Oilfield Services Announces Share Buyback Mandate
Apr 29, 2025

China Oilfield Services Limited has announced a class meeting for H shareholders to consider a special resolution granting the company’s Board a general mandate to buy back up to 10% of its domestic and overseas-listed foreign invested shares. This move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value, reflecting a strategic approach to adapt to market conditions and regulatory requirements.

China Oilfield Services Updates Final Dividend for 2024
Apr 29, 2025

China Oilfield Services Limited announced an update to its final cash dividend for the year ended December 31, 2024, declaring a dividend of RMB 0.2306 per share. The announcement includes key dates for shareholders, such as the ex-dividend date on June 9, 2025, and the payment date on June 30, 2025. This update reflects the company’s commitment to returning value to its shareholders, potentially strengthening its market position and investor confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 14, 2025