Citigroup: CHINA OILFIELD (02883) Achieved Performance in Line with Expectations, Rated "Buy"

Citi released a research report stating that CHINA OILFIELD (02883) had a net profit of 3.8 billion RMB last year, which met the bank's expectations. The net profit in the fourth quarter decreased by 9% year-on-year to 632 million RMB, mainly due to a one-time gain/loss of 191 million RMB. The bank maintained its target price at 9.5 Hong Kong dollars and rated it as "buy." The bank pointed out that the group's capital expenditure last year was 5.6 billion RMB, accounting for 78% of the earlier expected 7.17 billion RMB, mainly due to some shipbuilding projects being delayed to 2026. The expected capital expenditure in 2026 is 8.44 billion RMB, with around 3 billion RMB to be used for the upgrade and renovation of traditional equipment.