Everbright Securities has released a research report indicating that changes in the Middle East situation may impact the business development of ANTON OILFIELD (03337) in the region. Adopting a prudent approach, the firm has lowered its net profit attributable to equity holders forecasts for 2026 and 2027 by 17.0% and 14.4% to RMB 380 million and RMB 480 million, respectively. It has also introduced a 2028 forecast of RMB 590 million. Corresponding earnings per share (EPS) are projected at RMB 0.13, RMB 0.16, and RMB 0.20 for the respective years. The report notes that the company's capital-light business is developing steadily, and its new oilfield development business model is expected to unlock significant growth potential, leading to the maintenance of a "Buy" rating.
Key points from Everbright Securities' report are as follows:
In 2025, ANTON OILFIELD achieved a substantial increase in performance, with a continuous rise in net profit margin. Revenue reached RMB 5.57 billion, a year-on-year increase of 17.2%. Net profit attributable to equity holders was RMB 370 million, surging 53.8% year-on-year. The comprehensive gross profit margin was 28.6%, down 0.9 percentage points year-on-year, while the comprehensive net profit margin was 6.9%, an increase of 1.5 percentage points.
The capital-light business has supported the company's revenue growth, and the oilfield development model is opening new avenues for expansion. In 2025, revenue from integrated oilfield technical services, intelligent management services, and energy asset operation businesses were RMB 2.48 billion, RMB 2.82 billion, and RMB 270 million, respectively, representing year-on-year growth of 14.6%, 20.6%, and 8.2%. The significant revenue growth in the relatively capital-light intelligent management services business was the primary driver of the company's performance improvement. The company is actively exploring new business models in energy asset operations. Its DFR oilfield development project in Iraq is the first oilfield block project where the company acts as the lead operator. The drilling of the first well for this project officially commenced on February 22, 2026, alongside the initiation of workover and testing operations on an existing well, with progress currently on schedule. Furthermore, the company's natural gas and energy infrastructure business has achieved a breakthrough in the Sarawak market in Malaysia and is identifying broad commercial opportunities globally.
The domestic market demonstrated stable growth, while the overseas market achieved breakthroughs across multiple fronts. In 2025, revenue from the Chinese market, the Iraqi market, and other overseas markets amounted to RMB 1.87 billion, RMB 3.15 billion, and RMB 550 million, respectively, representing year-on-year growth of 12.7%, 21.0%, and 12.2%. In the Chinese market, the company set multiple records in deep earth exploration, offshore potential tapping, and onshore production enhancement, with several breakthrough projects being successfully implemented. In the Iraqi market, the DFR oilfield development project entered the substantive operational phase; the Majnoon field management project continued to operate smoothly and safely; and the company successfully secured several intelligent operation contracts, demonstrating its core competitiveness in providing digital solutions for the oil and gas industry. In other overseas markets, the company achieved significant results across emerging markets in the Middle East, Africa, and Southeast Asia. In 2025, the company formally entered the Kuwait market and obtained substantial access, while also making progress in countries such as Saudi Arabia, Algeria, Malaysia, and Oman, indicating potential for continued expansion of its footprint in emerging markets.
The report concludes with risk warnings, including fluctuations in oil prices, changes in industry policies, geopolitical risks in overseas markets, and foreign exchange rate volatility.