20230623-招银国际-达力普控股-01921.HK-An_integrated_OCTG_supplier_to_expand_global_footprint_8页_1mb

CMB International Global Markets provided an update on Dalipal Holdings (1921 HK), an integrated oil country tubular goods (OCTG) manufacturer focused on supplying China's Big Three national oil companies (NOCs). Key points from the report:

• Company Background: Dalipal provides OCTG products, including oil and gas pipes, new energy pipes, and special seamless steel tubes. Established in 1998 and listed in 2019.

• Financial Performance in 2022: Revenue grew 12% YoY to HKD 4.228 billion; net profit surged 83% YoY to HKD 0.152 billion. The company's O&G pipes segment emerged as the primary driver of this revenue growth.

• Growth Drivers:

  • The NOCs' exploration and production capex remains strong, supporting OCTG demand.
  • The company expanded its overseas presence, increasing overseas revenue by 2.2x YoY to HKD 1.15 billion (27.2% of total revenue). Key expansion milestones included penetrating the Middle East and North Africa markets and becoming a qualified supplier for Japanese Sumitomo.

• Capacity Expansion: A new production phase is under construction, set to complete by 2024, doubling Dalipal's production capacity in its core product categories.

• Analyst Rating: Dalipal received a "BUY" rating, indicating potential for returns of over 15% over the next 12 months.

The report highlights Dalipal's strategic shift toward overseas expansion and capacity growth, aiming to diversify revenue streams and enhance global market presence.