Everbright Securities: The oilfield development model is expected to open up growth potential Maintain Antong Oilfield Services (03337) "Buy" rating

Everbright Securities released a research report stating that changes in the Middle East situation may have a certain impact on Antong Oilfield Services’ (03337) Middle East business development. Out of prudence, it has respectively lowered the company’s 2026–2027 attributable net profit forecasts by 17.0%/14.4% to 3.8/4.8 billion yuan, and introduced a 2028 attributable net profit forecast of 5.9 billion yuan, corresponding EPS of 0.13/0.16/0.20 yuan, respectively. The company’s light-asset business is developing steadily, and its oilfield development business model is expected to open up new growth space; maintain a “Buy” rating.

Everbright Securities’ main views are as follows:

Performance achieves substantial growth, and net profit margin continues to improve

In 2025, Antong Oilfield Services achieved operating revenue of 5.57 billion yuan, up 17.2% year on year; attributable net profit of 370 million yuan, up 53.8% year on year. The comprehensive gross profit margin was 28.6%, down 0.9 percentage points year on year; the comprehensive net profit margin was 6.9%, up 1.5 percentage points year on year.

Light-asset business supports the company’s revenue growth, and the oilfield development model opens up growth space

In 2025, the company’s integrated oilfield technical services, intelligent management services, and energy asset operations achieved operating revenues of 2.48/2.82/0.27 billion yuan, respectively, up 14.6%/20.6%/8.2% year on year, respectively. The company’s relatively light-asset intelligent management services business saw a sharp increase in revenue, becoming the main source of the company’s performance growth. The company actively explores new business models in energy asset operations. Its Getfuri oilfield development project in the Iraq market is the company’s first oilfield block project led by it as the operator. The project officially started drilling work for the first well on February 22, 2026, and it has also simultaneously started restoration of an old well and oil testing and evaluation; it is currently being advanced smoothly in accordance with the planned schedule. The company’s natural gas and energy infrastructure business has made breakthroughs in the Sarawak market in Malaysia, and currently has broad business opportunities in the global market.

Steady growth in the domestic market, multi-line breakthroughs in overseas markets

In 2025, the company achieved operating revenues of 1.87/3.15/0.55 billion yuan in the China/ Iraq/ other overseas markets, respectively, representing year-on-year growth of 12.7%/21.0%/12.2%, respectively. In the China market, the company has repeatedly set records in deep ground exploration, offshore potential development, and onshore production increase, and multiple breakthrough projects have continued to be implemented. In the Iraq market, the Getfuri oilfield development project has officially entered a substantive operational stage; the Makinu oilfield management project continues to achieve steady and safe operations; the company has successfully won multiple intelligent operations projects, demonstrating the company’s core competitiveness in digital solutions for the oil and gas industry. In other overseas markets, including emerging markets such as the Middle East, Africa, and Southeast Asia, the company has achieved remarkable results. In 2025, the company formally entered the Kuwait market and has already obtained substantive access; meanwhile, the company has also made progress in countries including Saudi Arabia, Algeria, Malaysia, and Oman, and is expected to continue to expand its footprint in emerging markets in the future.

Risk warning: risk of oil price fluctuations; risk of changes in industry policies; risk of overseas geopolitical situations; risk of exchange rate fluctuations.

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