RES Latest Report

Performance Review

RPC (stock code: RES) recorded a total operating revenue of RMB335.36 million as of December 31, 2024, a year-on-year decrease of approximately 15.0% from RMB394.53 million as of December 31, 2023. This change indicates the company is facing challenges in revenue decline, possibly affected by weakened market demand, intensified competition, and internal management issues.

Key Financial Data

1. The total operating revenue in 2024 decreased, indicating market demand and competition pressure.

2. The sales cost decreased from RMB279.39 million to RMB250.24 million, although it partially alleviated the impact of revenue decline, but still failed to offset the significant decline in revenue.

3. The special expense item showed a negative value (-1,857,000 yuan), suggesting the company failed to effectively convert certain expenses into revenue.

4. The industry as a whole faces revenue pressure, reflecting the trend of insufficient market demand and intensified competition.

5. RPC's EBITDA decreased to US$46.1 million in 2024, with a 270-basis-point decline in margin to 13.7%.

Peer Comparison

1. Industry-wide analysis: In the current economic environment, many industries face revenue pressure, especially affected by global economic fluctuations and supply chain issues, with a possible overall decline in industry operating revenue, and the trend of insufficient market demand and intensified competition is obvious.

2. Peer evaluation analysis: Compared with other companies in the industry, RPC's revenue decline is more significant, indicating its weakened competitiveness in the market. According to peer data, some competitors such as Spaceon Electronics is expected to see a 10.20% decline in revenue in 2024, showing the challenges faced by the industry in general.

Summary

Overall, RPC's revenue decline in 2024 is mainly affected by weak market demand, intensified competition, and internal management issues. Although the decrease in sales cost partially alleviated the revenue decline, it still failed to offset the significant decline in overall operating revenue. The company needs to take effective measures to restore performance growth in the current economic environment.

Opportunities

1. Strengthen core capabilities and optimize resource allocation to improve operational efficiency and cash flow health.

2. Explore new market opportunities, especially in other business areas beyond non-pressure pumping services.

3. Strengthen customer relationship management to enhance customer stability and business continuity.

Risks

1. Uncertainty in the current macroeconomic environment may lead to a continuous decline or loss in net profit.

2. Strong performance from competitors in the industry may further erode RPC's market share.

3. If the company fails to effectively implement short-term operating strategies to cope with industry pressures, it may face greater performance risks.