Sinolink Securities: Maintains a "buy" rating on CNOOC Engineering, performance may continue to grow in 2026-2028.

The research report of Cinda Securities pointed out that the decrease in work volume of CNOOC Engineering dragged down performance, while overseas orders entered a peak execution period. In 2025, the operating income is expected to reach 27.163 billion yuan, a decrease of 9.32% year-on-year; net profit attributable to the parent company is 2.084 billion yuan, a decrease of 3.56% year-on-year; the gross profit margin of the company is expected to recover year-on-year in 2025, but profits are expected to decline due to the decrease in revenue. It is speculated that the domestic business revenue is mainly affected by the end of the seven-year action plan of CNOOC and the unclear new medium-long term action plan, while the overseas business has entered a peak execution period for orders. From the perspective of gross profit margin, the company will invest in multiple self-owned ship assets in overseas projects in 2025, and the fixed costs of overseas business will increase intermittently, with the overseas gross profit margin expected to be -2.76% year-on-year to 6.34%. In 2025, the company won a major order in the Middle East, with the order backlog reaching a historical high; it also acquired 49% equity of China Oil Fortune, enhancing its overall contracting capability. It is believed that the company is expected to benefit from CNOOC's high-level capital expenditure and overseas market expansion in the future, and the company's performance may continue to grow in 2026-2028, maintaining a "buy" rating.