Jereh Group(SZ:002353) Guohai Securities·2024-09-02 17:30Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage [1][4]. Core Views - The company's profitability remains robust, with a global layout continuously deepening. Despite a short-term revenue decline due to high base effects, the net profit has shown a slight increase year-on-year [3][4]. - The company maintains its leading position in domestic fracturing services while making breakthroughs in the offshore engineering sector [3][4]. - There is a rapid growth in overseas orders, indicating a deepening global presence, with significant contracts signed in various international markets [3][4]. Financial Performance Summary - For the first half of 2024, the company achieved operating revenue of 4.957 billion yuan, a year-on-year decrease of 8.54%. The net profit attributable to shareholders was 1.088 billion yuan, an increase of 4.33% year-on-year [3]. - The gross profit margin for 2024H1 was 35.83%, up by 0.15 percentage points year-on-year, while the net profit margin was 22.47%, an increase of 2.71 percentage points year-on-year [3]. - The company reported a total of 7.179 billion yuan in new orders for 2024H1, representing a year-on-year growth of 18.92%, with total backlog orders reaching 9.191 billion yuan, up 21.75% from the end of 2023 [3]. Future Earnings Forecast - The company is projected to achieve operating revenues of 15 billion yuan, 17.4 billion yuan, and 19.6 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 8%, 16%, and 13% [4][5]. - The net profit attributable to shareholders is expected to be 2.7 billion yuan, 3.2 billion yuan, and 3.7 billion yuan for the same years, with growth rates of 10%, 18%, and 15% [4][5]. - The latest closing price corresponds to a price-to-earnings (P/E) ratio of 11, 9, and 8 times for the years 2024, 2025, and 2026, respectively [4][5].