[ET Net News Agency, 9 October 2018] BofA Merrill Lynch lifted its target price for
China Oilfield Services (COSL)(02883) to HK$10.3 from HK$8.8, and upgraded its rating to
"buy" from "neutral".
The research house said sicne its last upgrade of COSL to "neutral" three months ago on
account of more concrete revenue growth outlook from the high-margin well services
segment, BofAML is incrementally more positive on the domestic drilling market as Chinese
government's call for increased domestic oil/gas reserve booking and production, CNOOC's
record-high free cash flow level and low domestic crude reserve life will push CNOOC to
expedite investment in high-complexity projects and exploration in frontier areas that
were not economically viable during 2015-17.
Such projects can help COSL's EBIT margin to increase to 16% in 2020, versus 6% now,
BofAML added. In addition, industry leaders are more convinced of an earlier-than-expected
rig day-rate recovery.
It lifted 2018-20 NPAT by 0-3% mainly due to USD:RMB exchange rate impact. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
02883 CHINA OILFIELD
Nominal 
9.190 +0.090 (+0.989%) Others
09/10/2018 14:50
[I-bank focus]BofAML lifts China Oilfield (02883) to HK$10.3
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