Jereh Group(SZ:002353) China Post Securities·2024-09-11 05:59Investment Rating - The report maintains a "Buy" rating for the company, with an expected increase in stock price relative to the benchmark index of over 20% [8]. Core Insights - The company reported a revenue of 4.957 billion yuan for the first half of 2024, a decrease of 8.54% year-on-year, while the net profit attributable to shareholders increased by 4.33% to 1.088 billion yuan [5][6]. - The decline in revenue is primarily attributed to the oil and gas engineering services segment, with oilfield services and equipment revenue slightly increasing by 0.01% to 4.163 billion yuan, while oilfield engineering and equipment revenue decreased by 36.86% to 794 million yuan [5]. - The company is actively pursuing international expansion, with overseas revenue accounting for over 48% of total revenue, and has signed significant new orders in various regions [5][6]. - Cash flow from operating activities showed a significant improvement, with a net cash flow of 1.061 billion yuan, representing a year-on-year increase of 307.74% [5]. Financial Summary - The company’s total share capital is 1.024 billion shares, with a market capitalization of 27.1 billion yuan [5]. - The projected revenue for 2024-2026 is expected to be 14.292 billion, 16.959 billion, and 19.160 billion yuan, with corresponding growth rates of 2.73%, 18.65%, and 12.98% respectively [6][7]. - The projected net profit attributable to shareholders for the same period is estimated at 2.654 billion, 3.207 billion, and 3.596 billion yuan, with growth rates of 8.14%, 20.84%, and 12.13% respectively [6][7]. - The company’s price-to-earnings (P/E) ratio for 2024-2026 is projected to be 10.21, 8.45, and 7.54 times [6][7].