Jereh Group(002353) 东吴证券·2024-09-18 22:36Investment Rating - Buy (Maintained) [1] Core Views - Management's share purchase plan demonstrates confidence in the company's development, with the chairman, president, and vice president planning to purchase shares worth 70-90 million RMB over the next 6 months [2] - The domestic oil service industry is influenced by oil prices and policies, with limited short-term impact from oil price fluctuations [3] - Recent stable bidding for CNPC oil and gas projects, with the company winning multiple large contracts totaling over 400 million RMB [3] - Domestic business remains stable, while overseas business in the Middle East, Central Asia, and North America is rapidly expanding [3] Financial Forecasts and Valuation - Revenue is expected to grow from 13,912 million RMB in 2023 to 19,682 million RMB in 2026, with a CAGR of 12.2% [2] - Net profit attributable to the parent company is projected to increase from 2,454 million RMB in 2023 to 3,707 million RMB in 2026, with a CAGR of 14.7% [2] - EPS is forecasted to rise from 2.40 RMB in 2023 to 3.62 RMB in 2026 [2] - The current P/E ratio is 10.17x for 2024E, 8.43x for 2025E, and 7.48x for 2026E, representing the lowest 1% percentile valuation since listing [3] Market Data - Closing price: 27.07 RMB [4] - 52-week low/high: 23.99/37.67 RMB [4] - P/B ratio: 1.40x [4] - Market capitalization: 27,715.78 million RMB [4] Financial Highlights - Total assets are expected to grow from 31,777 million RMB in 2023 to 45,695 million RMB in 2026 [7] - Net profit margin is forecasted to increase from 17.64% in 2023 to 18.83% in 2026 [7] - ROE is projected to remain stable around 12.5% from 2023 to 2026 [8] Industry Analysis - The domestic oil service industry has decoupled from oil price fluctuations since 2020, with CNPC's capital expenditure budget for 2024 at 561 billion RMB, down 3% YoY [3] - The company's main product, fracturing equipment, is closely related to unconventional oil and gas development, which is a key focus for China's future development [3]