# Cnooc (0883.HK)

Canonical: https://gigainvestors.com/s/0883.HK

Analysis as of: 2026-10-16T07:33:36.057Z. Financial observations: FY1998–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 24.20 per share; close as of 2026-10-15.

Estimated value: low HKD 32.92 per share, central HKD 36.37 per share, high HKD 40.97 per share. Buy at or below the central value HKD 36.37 per share. Valuation as of 2026-10-16T07:33:36.057Z; scenarios are not confidence intervals.

Expected annual return: 15.5% at the stated quote. About 15.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.46×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.03×

- FY2017: 0.19×

- FY2018: 0.34×

- FY2019: 0.35×

- FY2020: 0.22×

- FY2021: 0.39×

- FY2022: 0.45×

- FY2023: 0.40×

- FY2024: 0.45×

- FY2025: 0.44×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 15.0%

- ROIC, second-lowest year: 5.5%

- Typical minus recent gross margin: 5.5 pp

- Typical gross margin (annual median): 73.0%

- Recent gross margin (lower of latest and 3-year median): 67.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 29.2%

- ROIC including acquisitions, ten-year median: 12.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -0.9%

- FY2017: 6.0%

- FY2018: 14.0%

- FY2019: 13.7%

- FY2020: 5.5%

- FY2021: 16.0%

- FY2022: 27.7%

- FY2023: 20.9%

- FY2024: 22.1%

- FY2025: 20.2%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.78×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 467B

- Net income, five-year total: CNY 596B

- Return on incremental invested capital: 78.5%

- Working capital / revenue, annual change: -2.2 pp

- Working capital / revenue, change between three-year averages: -15.1 pp

- Working capital / revenue, final three-year average: -4.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.98×

- FY2022: 0.99×

- FY2023: 0.58×

- FY2024: 0.68×

- FY2025: 0.76×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.0% vs 20.9%

- Per-share earnings: 0.45 to 2.60 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.6%

- Ordinary dilution, 5-year annual growth: 1.3%

- Market cap gain: CNY 494B

- Cumulative retained earnings: CNY 315B

- Diluted shares, 10-year annual growth: 0.6%

- Diluted shares, 5-year annual growth: 1.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 24.4%

- Per-share value change: CNY 2.15

- Per-share value, starting three-year median: CNY 0.45

- Per-share value, ending three-year median: CNY 2.60

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.1%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 17B

- Cumulative net income, 10 years: CNY 760B

- ROIC, first three-year median: 6.0%

- ROIC, last three-year median: 20.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.01

- FY2017: CNY 0.55

- FY2018: CNY 1.18

- FY2019: CNY 1.37

- FY2020: CNY 0.56

- FY2021: CNY 1.58

- FY2022: CNY 3.03

- FY2023: CNY 2.60

- FY2024: CNY 2.90

- FY2025: CNY 2.57

### accounting: pass

- Sloan accruals: -7.6%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.68×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -11.3%

- FY2017: -11.4%

- FY2018: -10.6%

- FY2019: -8.2%

- FY2020: -8.0%

- FY2021: -9.9%

- FY2022: -6.9%

- FY2023: -8.5%

- FY2024: -7.9%

- FY2025: -7.6%

## Holders

## Price story

Price needs cash profits to shrink 6.1% a year for ten years · "Lower Oil Prices Dent CNOOC Earnings Despite Record Output" (finance.yahoo.com, Aug 2025) · sales -5.3%

Story as of 2026-10-16T09:59:56.853Z; price observation 2026-10-15.

Price needs cash profits to shrink 6.1% a year for ten years

- 2025-08-27: Lower Oil Prices Dent CNOOC Earnings Despite Record Output ([finance.yahoo.com](https://finance.yahoo.com/news/lower-oil-prices-dent-cnooc-153000128.html))

- 2026-04-28: Cnooc Q1 Profit Rises To 39.14 Billion Yuan As Oil Prices Climb ([finance.yahoo.com](https://finance.yahoo.com/sectors/energy/articles/cnooc-q1-profit-rises-39-193953312.html))

### Sales · FY2024–2025

sales -5.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 146B 

- FY2017: CNY 186B 

- FY2018: CNY 228B 

- FY2019: CNY 233B 

- FY2020: CNY 155B 

- FY2021: CNY 246B 

- FY2022: CNY 432B 

- FY2023: CNY 417B 

- FY2024: CNY 421B 

- FY2025: CNY 398B 

### Gross margin · FY2025

gross margin 67.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 71.1% 

- FY2017: 72.1% 

- FY2018: 74.6% 

- FY2019: 76.9% 

- FY2020: 76.9% 

- FY2021: 81.9% 

- FY2022: 64.3% 

- FY2023: 73.9% 

- FY2024: 53.6% 

- FY2025: 67.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas e&p; annual sales are CNY 398.2 billion.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2025-12-31 (filed 2026-10-16T07:33:36.057Z); FY2025: revenue 398220000000; grossProfit 268759000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 53.6% to 73.9% during 2023–25; it earns 15% on its capital.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2023-12-31 (filed 2026-10-16T07:33:36.057Z); FY2023: grossProfit / revenue = 73.9%.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2024-12-31 (filed 2026-10-16T07:33:36.057Z); FY2024: grossProfit / revenue = 53.6%.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2025-12-31 (filed 2026-10-16T07:33:36.057Z); FY2025: grossProfit / revenue = 67.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.057Z); 10-year return on capital observations [[2016,-0.009224512803994202],[2017,0.06031192335005746],[2018,0.14010056755918193],[2019,0.13681089062888685],[2020,0.05531943870569368],[2021,0.15993325361577665],[2022,0.2772740215674983],[2023,0.2086485232703642],[2024,0.22104620639528977],[2025,0.2023049375719147]]; median 0.1500169105874793. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2016-12-31 (filed 2026-10-16T07:33:36.057Z); FY2016: growth capex 0; upkeep 51347000000; owner earnings 18613000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2017-12-31 (filed 2026-10-16T07:33:36.057Z); FY2017: growth capex 0; upkeep 47734000000; owner earnings 38599000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2018-12-31 (filed 2026-10-16T07:33:36.057Z); FY2018: growth capex 261000000; upkeep 51005000000; owner earnings 52688000000. Growth capex / owner earnings = 0.004953689644700881.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2019-12-31 (filed 2026-10-16T07:33:36.057Z); FY2019: growth capex 12595426199.783737; upkeep 59418573800.21626; owner earnings 56515026199.78374. Growth capex / owner earnings = 0.2228686253326365.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2020-12-31 (filed 2026-10-16T07:33:36.057Z); FY2020: growth capex 0; upkeep 75418000000; owner earnings 7040200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2021-12-31 (filed 2026-10-16T07:33:36.057Z); FY2021: growth capex 19083000000; upkeep 63354000000; owner earnings 68936000000. Growth capex / owner earnings = 0.27682197980735757.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2022-12-31 (filed 2026-10-16T07:33:36.057Z); FY2022: growth capex 31684000000; upkeep 63070000000; cash acquisitions 462000000; owner earnings 140013200000. Growth capex plus acquisitions / owner earnings = 0.22959263840837865.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2023-12-31 (filed 2026-10-16T07:33:36.057Z); FY2023: growth capex 0; upkeep 120954127000; cash acquisitions 1966000000; owner earnings 71604873000. Growth capex plus acquisitions / owner earnings = 0.027456231924327272.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2024-12-31 (filed 2026-10-16T07:33:36.057Z); FY2024: growth capex 7088144082.257904; upkeep 116270855917.7421; cash acquisitions 551000000; owner earnings 93794144082.2579. Growth capex plus acquisitions / owner earnings = 0.08144585311806181.

- Source: https://eodhd.com/api/fundamentals/0883.HK.json#2025-12-31 (filed 2026-10-16T07:33:36.057Z); FY2025: growth capex 0; upkeep 108667833000; cash acquisitions 0; owner earnings 92935066000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.057Z); Dividend observations: [[2016,14153000000],[2017,16448000000],[2018,23523000000],[2019,28973000000],[2020,25851000000],[2021,20473000000],[2022,77378000000],[2023,58287131000],[2024,60869000000],[2025,58867953000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 66.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0883.HK SharesStats.PercentInsiders = 66.305 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 6.1% yearly over ten years; actual growth was 11.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.057Z); Ten-year compound average after fade. Initial solved rate -0.09851407432068343. Price 24.2; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.635177191139706 → FY2025 1.9552946765167227. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 9.87 per share

- 2016-11: HKD 9.78 per share

- 2016-12: HKD 9.70 per share

- 2017-01: HKD 9.84 per share

- 2017-02: HKD 9.18 per share

- 2017-03: HKD 9.28 per share

- 2017-04: HKD 9.07 per share

- 2017-05: HKD 8.90 per share

- 2017-06: HKD 8.55 per share

- 2017-07: HKD 8.74 per share

- 2017-08: HKD 9.36 per share

- 2017-09: HKD 10.08 per share

- 2017-10: HKD 10.62 per share

- 2017-11: HKD 10.58 per share

- 2017-12: HKD 11.22 per share

- 2018-01: HKD 12.18 per share

- 2018-02: HKD 11.40 per share

- 2018-03: HKD 11.56 per share

- 2018-04: HKD 13.16 per share

- 2018-05: HKD 13.20 per share

- 2018-06: HKD 13.54 per share

- 2018-07: HKD 13.12 per share

- 2018-08: HKD 13.88 per share

- 2018-09: HKD 15.50 per share

- 2018-10: HKD 13.46 per share

- 2018-11: HKD 13.30 per share

- 2018-12: HKD 12.10 per share

- 2019-01: HKD 13.12 per share

- 2019-02: HKD 13.54 per share

- 2019-03: HKD 14.70 per share

- 2019-04: HKD 14.18 per share

- 2019-05: HKD 12.78 per share

- 2019-06: HKD 13.36 per share

- 2019-07: HKD 12.94 per share

- 2019-08: HKD 11.70 per share

- 2019-09: HKD 11.96 per share

- 2019-10: HKD 11.76 per share

- 2019-11: HKD 11.36 per share

- 2019-12: HKD 12.96 per share

- 2020-01: HKD 11.86 per share

- 2020-02: HKD 10.68 per share

- 2020-03: HKD 8.13 per share

- 2020-04: HKD 8.79 per share

- 2020-05: HKD 8.63 per share

- 2020-06: HKD 8.62 per share

- 2020-07: HKD 8.20 per share

- 2020-08: HKD 8.82 per share

- 2020-09: HKD 7.45 per share

- 2020-10: HKD 7.04 per share

- 2020-11: HKD 8.13 per share

- 2020-12: HKD 7.18 per share

- 2021-01: HKD 7.62 per share

- 2021-02: HKD 9.25 per share

- 2021-03: HKD 8.13 per share

- 2021-04: HKD 8.24 per share

- 2021-05: HKD 8.43 per share

- 2021-06: HKD 8.83 per share

- 2021-07: HKD 7.70 per share

- 2021-08: HKD 7.77 per share

- 2021-09: HKD 8.70 per share

- 2021-10: HKD 8.58 per share

- 2021-11: HKD 7.66 per share

- 2021-12: HKD 8.03 per share

- 2022-01: HKD 9.36 per share

- 2022-02: HKD 9.97 per share

- 2022-03: HKD 10.74 per share

- 2022-04: HKD 11.22 per share

- 2022-05: HKD 12.42 per share

- 2022-06: HKD 10.36 per share

- 2022-07: HKD 10.00 per share

- 2022-08: HKD 10.64 per share

- 2022-09: HKD 9.41 per share

- 2022-10: HKD 9.36 per share

- 2022-11: HKD 10.20 per share

- 2022-12: HKD 9.98 per share

- 2023-01: HKD 11.36 per share

- 2023-02: HKD 11.02 per share

- 2023-03: HKD 11.66 per share

- 2023-04: HKD 12.80 per share

- 2023-05: HKD 11.78 per share

- 2023-06: HKD 11.20 per share

- 2023-07: HKD 12.58 per share

- 2023-08: HKD 13.38 per share

- 2023-09: HKD 13.78 per share

- 2023-10: HKD 12.68 per share

- 2023-11: HKD 13.06 per share

- 2023-12: HKD 13.00 per share

- 2024-01: HKD 14.46 per share

- 2024-02: HKD 16.08 per share

- 2024-03: HKD 18.12 per share

- 2024-04: HKD 20.30 per share

- 2024-05: HKD 20.90 per share

- 2024-06: HKD 22.40 per share

- 2024-07: HKD 20.50 per share

- 2024-08: HKD 21.55 per share

- 2024-09: HKD 19.42 per share

- 2024-10: HKD 18.18 per share

- 2024-11: HKD 17.10 per share

- 2024-12: HKD 19.12 per share

- 2025-01: HKD 18.44 per share

- 2025-02: HKD 17.88 per share

- 2025-03: HKD 18.52 per share

- 2025-04: HKD 16.76 per share

- 2025-05: HKD 18.08 per share

- 2025-06: HKD 17.72 per share

- 2025-07: HKD 18.92 per share

- 2025-08: HKD 19.51 per share

- 2025-09: HKD 19.04 per share

- 2025-10: HKD 19.77 per share

- 2025-11: HKD 21.18 per share

- 2025-12: HKD 21.30 per share

- 2026-01: HKD 24.38 per share

- 2026-02: HKD 25.32 per share

- 2026-03: HKD 28.00 per share

- 2026-04: HKD 29.38 per share

- 2026-05: HKD 26.40 per share

- 2026-06: HKD 20.32 per share

- 2026-07: HKD 23.82 per share

- 2026-08: HKD 25.30 per share

- 2026-09: HKD 23.96 per share

- 2026-10: HKD 24.20 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 8.66 per share, central HKD 9.56 per share, high HKD 10.76 per share

- FY2017: low HKD 11.44 per share, central HKD 12.66 per share, high HKD 14.28 per share

- FY2018: low HKD 15.26 per share, central HKD 17.50 per share, high HKD 19.73 per share

- FY2019: low HKD 20.78 per share, central HKD 26.92 per share, high HKD 30.84 per share

- FY2020: low HKD 12.50 per share, central HKD 13.78 per share, high HKD 15.47 per share

- FY2021: low HKD 20.48 per share, central HKD 22.73 per share, high HKD 25.73 per share

- FY2022: low HKD 37.96 per share, central HKD 48.21 per share, high HKD 55.54 per share

- FY2023: low HKD 33.17 per share, central HKD 38.83 per share, high HKD 44.46 per share

- FY2024: low HKD 32.65 per share, central HKD 39.99 per share, high HKD 45.91 per share

- FY2025: low HKD 30.81 per share, central HKD 34.26 per share, high HKD 38.86 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:21.673Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.