China's Recon Technology FY revenue jumps on overseas oilfield projects growth
China's Recon Technology FY revenue jumps on overseas oilfield projects growth
Overview
China oilfield services integrator's fiscal 2026 revenue rose 65.8% year-over-year
Gross margin improved to 33.2% from 23.0% in prior year
Company narrowed net loss, driven by overseas project growth and margin gains
Outlook
Recon plans to bring its chemical recycling plant to commercial production in fiscal 2027
Company aims to extend overseas and offshore oilfield footprint and rebuild domestic services
Recon says oil price volatility and macroeconomic conditions remain challenges for the coming year
Result Drivers
OVERSEAS PROJECTS - Revenue growth and gross margin expansion were primarily driven by increased overseas oilfield automation projects, per CEO Shenping Yin
RECYCLING PLANT LAUNCH - Commencement of waste plastic chemical recycling plant operations in Weifang, Shandong provided new growth opportunity, per CEO Shenping Yin
ENVIRONMENTAL PROTECTION MARGIN - Gross margin in oilfield environmental protection improved due to absence of one-time testing costs and higher settlement prices
Company press release: ID:nPn6jpxDqa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| RMB 109.90 mln |
|
FY Net Loss |
| RMB 31.60 mln |
|
FY Gross Margin |
| 33.20% |
|
FY Gross Profit |
| RMB 36.50 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the oil related services and equipment peer group is "buy."
Reuters Recommended Reads
Sept 30 - Chinese factory activity expands in September amid AI boom
Sept 28 - China's cabinet pledges stronger policy support to meet growth target
Sept 29 - China expects trade to grow despite external challenges
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)