Jereh Group(002353) 天风证券·2024-08-29 11:42Investment Rating - The report maintains a "Buy" rating for the company, with a positive outlook on its performance [2][4] Core Views - The company's H1 2024 revenue was RMB 4.957 billion, a YoY decrease of 8.54%, primarily due to fewer executable orders in oil and gas engineering services [1] - Net profit attributable to the parent company was RMB 1.088 billion, a YoY increase of 4.33%, showing stable profitability [1] - The company's gross margin was 35.83%, a slight increase of 0.15 pct YoY, while the net margin improved by 2.71 pct to 22.47% [1] - Operating cash flow in H1 2024 was RMB 1.061 billion, a significant YoY increase of 307.74%, indicating improved cash flow conditions [1] - The company secured new orders worth RMB 7.179 billion in H1 2024, a YoY increase of 18.92%, with overseas markets contributing 48.04% of revenue [2] Financial Performance - In Q2 2024, the company's revenue was RMB 2.826 billion, a YoY decrease of 10.01%, while net profit attributable to the parent company increased by 3.05% to RMB 713 million [1] - The company's gross margin in Q2 2024 was 35.92%, up 0.53 pct YoY, and the net margin improved by 3.28 pct to 25.84% [1] - The company plans to distribute an interim dividend of RMB 0.12 per share (tax included), totaling RMB 123 million [1] Order Performance - The company successfully won a bid for CNPC's 2024 electric fracturing equipment procurement project in June 2024 [2] - In May 2024, the company signed a preliminary development and production contract for the Mansuriya gas field in Iraq [2] - The company completed the delivery of its first set of electric fracturing equipment in North America and secured new orders from existing clients [2] - A major natural gas project order was secured from a strategic client in Central Asia, marking the largest single equipment order for the company [2] Financial Forecasts - The company's revenue is expected to grow to RMB 14.565 billion in 2024, RMB 17.020 billion in 2025, and RMB 19.949 billion in 2026 [3] - Net profit attributable to the parent company is forecasted to be RMB 2.784 billion in 2024, RMB 3.409 billion in 2025, and RMB 4.188 billion in 2026 [3] - The company's EPS is projected to be RMB 2.72 in 2024, RMB 3.33 in 2025, and RMB 4.09 in 2026 [3] Valuation Metrics - The company's P/E ratio is expected to be 10.2x in 2024, 8.3x in 2025, and 6.8x in 2026 [3] - The P/B ratio is forecasted to be 1.30x in 2024, 1.15x in 2025, and 1.01x in 2026 [3] - The EV/EBITDA ratio is projected to decrease from 4.07x in 2024 to 2.19x in 2026 [3]