SEHK:2883

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China Oilfield Services

Executive Summary

China Oilfield Services Limited, together with its subsidiaries, provides integrated offshore oilfield services in Mainland China and internationally. More Details


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has China Oilfield Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2883 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 2883's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

15.4%

2883

13.6%

HK Energy Services

1.1%

HK Market


1 Year Return

-35.7%

2883

-32.1%

HK Energy Services

8.2%

HK Market

Return vs Industry: 2883 underperformed the Hong Kong Energy Services industry which returned -31.8% over the past year.

Return vs Market: 2883 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

2883IndustryMarket
7 Day15.4%13.6%1.1%
30 Day32.6%24.5%7.2%
90 Day11.3%8.3%5.2%
1 Year-34.4%-35.7%-31.2%-32.1%12.6%8.2%
3 Year-0.4%-4.4%-33.7%-35.0%0.4%-10.0%
5 Year-4.7%-10.4%-53.4%-54.3%30.6%8.5%

Long-Term Price Volatility Vs. Market

How volatile is China Oilfield Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Oilfield Services undervalued compared to its fair value and its price relative to the market?

8.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2883 (HK$6.88) is trading below our estimate of fair value (HK$7.51)

Significantly Below Fair Value: 2883 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2883 is good value based on its PE Ratio (10.9x) compared to the HK Energy Services industry average (11.8x).

PE vs Market: 2883 is good value based on its PE Ratio (10.9x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 2883 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 2883 is overvalued based on its PB Ratio (0.7x) compared to the HK Energy Services industry average (0.5x).


Next Steps

Future Growth

How is China Oilfield Services forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2883's forecast earnings growth (12.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 2883's earnings (12.4% per year) are forecast to grow slower than the Hong Kong market (21.9% per year).

High Growth Earnings: 2883's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2883's revenue (5.2% per year) is forecast to grow slower than the Hong Kong market (13.7% per year).

High Growth Revenue: 2883's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2883's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has China Oilfield Services performed over the past 5 years?

54.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2883 has a large one-off loss of CN¥1.0B impacting its September 30 2020 financial results.

Growing Profit Margin: 2883's current net profit margins (8.1%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 2883's earnings have grown significantly by 54% per year over the past 5 years.

Accelerating Growth: 2883's earnings growth over the past year (2.9%) is below its 5-year average (54% per year).

Earnings vs Industry: 2883 earnings growth over the past year (2.9%) exceeded the Energy Services industry -18.6%.


Return on Equity

High ROE: 2883's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is China Oilfield Services's financial position?


Financial Position Analysis

Short Term Liabilities: 2883's short term assets (CN¥26.0B) exceed its short term liabilities (CN¥14.8B).

Long Term Liabilities: 2883's short term assets (CN¥26.0B) exceed its long term liabilities (CN¥24.2B).


Debt to Equity History and Analysis

Debt Level: 2883's debt to equity ratio (67.7%) is considered high.

Reducing Debt: 2883's debt to equity ratio has reduced from 77.1% to 67.7% over the past 5 years.

Debt Coverage: 2883's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: 2883's interest payments on its debt are well covered by EBIT (17x coverage).


Balance Sheet


Next Steps

Dividend

What is China Oilfield Services's current dividend yield, its reliability and sustainability?

2.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2883's dividend (2.74%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 2883's dividend (2.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


Stability and Growth of Payments

Stable Dividend: 2883's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2883's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30%), 2883's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2883's dividends in 3 years are forecast to be well covered by earnings (33% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Meisheng Qi (52 yo)

0.25

Tenure

CN¥1,521,000

Compensation

Mr. Meisheng Qi serves as Chief Executive Officer at China Oilfield Services Limited since August 26, 2020. Mr. Qi has been Chairman of China Oilfield Services Ltd since March 28, 2018. He serves as the Ex...


CEO Compensation Analysis

Compensation vs Market: Meisheng's total compensation ($USD231.31K) is below average for companies of similar size in the Hong Kong market ($USD600.03K).

Compensation vs Earnings: Meisheng's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Meisheng Qi
Executive Chairman & CEO0.25yrCN¥1.52mno data
Yonggang Zheng
Chief Financial Officer2.75yrsCN¥1.32m0.00011%
CN¥ 68.1k
Guimin Yu
VP & General Legal Counsel2yrsCN¥1.30mno data
Yanyan Wu
Company Secretary1.25yrsCN¥369.10kno data
Shunqiang Zhao
President & Executive Director0.083yrno datano data

1.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 2883's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Meisheng Qi
Executive Chairman & CEO0.25yrCN¥1.52mno data
Shunqiang Zhao
President & Executive Director0.083yrno datano data
Chung Fong
Independent Non-Executive Director5.42yrsCN¥400.00kno data
Jun Meng
Non-Executive Director2.92yrsno datano data
Hanming Wu
Chairman of Supervisory Board2.5yrsno datano data
Xinsheng Cheng
Independent Supervisor5.42yrsno datano data
Boqiang Lin
Independent Non-Executive Director0.50yrno datano data
Kwai Huen Wong
Independent Non-Executive Director4.5yrsCN¥400.00kno data
Wukui Zhang
Non-Executive Director2.5yrsno datano data
Bi Zhao
Employee Supervisor1.33yrsno datano data
Wen Peng
Supervisor0.083yrno datano data

2.5yrs

Average Tenure

60yo

Average Age

Experienced Board: 2883's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Oilfield Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Oilfield Services Limited
  • Ticker: 2883
  • Exchange: SEHK
  • Founded:
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: HK$61.901b
  • Shares outstanding: 4.77b
  • Website: https://www.cosl.com.cn

Number of Employees


Location

  • China Oilfield Services Limited
  • 201 Haiyou Avenue
  • Yanjiao Economic & Technological Dev Zn
  • Sanhe
  • Hebei Province
  • 65201
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHOL.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDNov 2002
2883SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 2002
CO9DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURNov 2002
2883SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 2002
2883SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 2002
601808SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYSep 2007
601808XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYSep 2007

Biography

China Oilfield Services Limited, together with its subsidiaries, provides integrated offshore oilfield services in Mainland China and internationally. The company operates through four segments: Drilling S...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:30
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.