Jereh Group(SZ:002353) Orient Securities·2024-10-25 00:08Investment Rating - The report maintains a "Buy" rating for the company with a target price of 39.00 CNY, based on a 15x PE ratio for 2024 [2][5]. Core Insights - The company's revenue for the first three quarters of 2024 is 8.047 billion CNY, a decrease of 8.1% year-on-year, while the net profit attributable to shareholders is 1.598 billion CNY, an increase of 2.2% year-on-year [1][2]. - The gross margin improved to 33.7% in Q3 2024, up 3.74 percentage points year-on-year, indicating a positive shift in business structure [1]. - Contract liabilities surged to 1.495 billion CNY by the end of September 2024, reflecting a 68% year-on-year increase and a 46% quarter-on-quarter increase, suggesting a robust order backlog [1][2]. Financial Performance Summary - Revenue (in million CNY): - 2022A: 11,409 - 2023A: 13,912 - 2024E: 13,931 - 2025E: 16,781 - 2026E: 19,321 - Year-on-year growth rates for revenue: - 2022A: 30.0% - 2023A: 21.9% - 2024E: 0.1% - 2025E: 20.5% - 2026E: 15.1% [4][6]. - Net profit attributable to shareholders (in million CNY): - 2022A: 2,245 - 2023A: 2,454 - 2024E: 2,660 - 2025E: 3,204 - 2026E: 3,858 - Year-on-year growth rates for net profit: - 2022A: 41.5% - 2023A: 9.3% - 2024E: 8.4% - 2025E: 20.5% - 2026E: 20.4% [4][6].