Everbright Securities: Oilfield development models are expected to open up growth potential Maintain "Buy" rating for Antong Oilfield Services

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Everbright Securities releases research report stating that changes in the Middle East situation may have some impact on Antong Oilfield Services (03337) in expanding its Middle East business. Out of prudence, the company has respectively lowered its net profit forecast attributable to shareholders for 2026-2027 by 17.0%/14.4% to 380 million/480 million yuan, and introduced a forecast of 590 million yuan for 2028, with EPS of 0.13/0.16/0.20 yuan. The company’s light-asset business is steadily developing, and the oilfield development business model is expected to open new growth space. Maintain a “Buy” rating.

Everbright Securities’ main views are as follows:

Significant performance growth, continuous improvement in net profit margin

Antong Oilfield Services achieved revenue of 5.57 billion yuan in 2025, up 17.2% year-on-year; net profit attributable to shareholders was 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 revenue growth, oilfield development model opens growth space

In 2025, the company’s integrated oilfield technical services, intelligent management services, and energy asset management business achieved revenues of 2.48 billion, 2.82 billion, and 270 million yuan, respectively, representing year-on-year increases of 14.6%, 20.6%, and 8.2%. The company’s relatively light-asset intelligent management services saw a significant revenue increase, becoming the main driver of performance growth. The company actively explores new business models in energy asset management. Its Dufure oilfield development project in Iraq is the company’s first oilfield block project led by the operator. The project officially started drilling the first well on February 22, 2026, and simultaneously began restoring an old well and testing oil flow, currently progressing smoothly as planned. The company’s natural gas and energy infrastructure business has made breakthroughs in the Sarawak market in Malaysia, with broad global market opportunities.

Steady growth in domestic market, multi-line breakthroughs overseas

In 2025, the company’s revenues in China, Iraq, and other overseas markets reached 1.87 billion, 3.15 billion, and 550 million yuan, respectively, with year-on-year increases of 12.7%, 21.0%, and 12.2%. In China, the company has repeatedly set records in deep-earth exploration, offshore potential development, and onshore production increase, with multiple breakthrough projects continuously launched. In Iraq, the Dufure oilfield development project has entered the substantive operational stage; the Makinu oilfield management project continues to operate smoothly and safely; the company successfully won several intelligent operation projects, demonstrating its core competitiveness in digital solutions for the oil and gas industry. In other emerging markets such as the Middle East, Africa, and Southeast Asia, the company has achieved notable results. In 2025, the company officially entered the Kuwait market with substantial access, and progress has been made in Saudi Arabia, Algeria, Malaysia, Oman, and other countries, with potential for further expansion into emerging markets.

Risk warnings: Oil price volatility risk, industry policy change risk, overseas geopolitical risk, exchange rate fluctuation risk.

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Editor: Shi Lijun