Jereh Group(SZ:002353) CAITONG SECURITIES·2024-09-26 08:03Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company has signed a large natural gas project with BAPCO, marking a breakthrough in the Middle East market [5] - The total contract amount is approximately $316 million, equivalent to about 2.2 billion RMB [5] - The project includes six booster stations and one central compression station, with a total gas processing capacity of nearly 900 MMSCFD [5] - The project is significant as it is the first large-scale natural gas EPCC cooperation project since the establishment of diplomatic relations between China and Bahrain [5] - The company has successfully entered the high-end oil and gas engineering market in the Middle East, following previous contracts with major oil companies in the region [5] Financial Performance - For the first half of 2024, the company achieved overseas revenue of 2.381 billion RMB, accounting for 48.04% of total revenue [5] - The gross profit margin for overseas markets increased by 1.25 percentage points year-on-year [5] - The company signed new orders worth 7.179 billion RMB in the first half of 2024, representing a year-on-year increase of 18.92% [5] - The total backlog of orders at the end of the first half of 2024 was 9.191 billion RMB, indicating a strong order pipeline [5] Profit Forecast - The company is expected to achieve net profits of 2.76 billion RMB, 3.28 billion RMB, and 3.73 billion RMB for the years 2024, 2025, and 2026, respectively [5] - The corresponding price-to-earnings ratios (PE) are projected to be 10.7, 9.0, and 7.9 times for the same years [5]