Jereh Group(SZ:002353) SINOLINK SECURITIES·2024-10-25 07:09Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company reported a revenue of 8.047 billion RMB for the first three quarters of 2024, a year-on-year decrease of 8.10%, with Q3 revenue at 3.09 billion RMB, down 7.38% year-on-year. However, the net profit attributable to shareholders for the same period was 1.598 billion RMB, an increase of 2.21% year-on-year [2]. - The company has signed new orders worth 7.18 billion RMB in H1 2024, reflecting an 18.9% year-on-year increase, indicating strong demand in the downstream market [2]. - The company's overseas revenue accounted for 48.0% of total revenue in H1 2024, with a gross margin of 37.2%, which is higher than the domestic gross margin of 34.6% [2]. - The management team has collectively increased their holdings in the company, demonstrating confidence in its long-term development [2]. Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a net profit of 1.598 billion RMB, with a Q3 net profit of 510 million RMB, down 2.04% year-on-year [2]. - The company expects revenue growth to recover as orders are executed, with projected revenues of 14.286 billion RMB, 16.916 billion RMB, and 19.164 billion RMB for 2024, 2025, and 2026 respectively [3][6]. Operational Analysis - The company has improved cash flow management, resulting in a net cash flow from operating activities of 1.468 billion RMB, a significant increase of 288.4% year-on-year [2]. - The company has secured significant overseas contracts, including a 2.2 billion RMB EPC order in Bahrain, which is expected to enhance overall profitability [2]. Management Confidence - The management's decision to increase their shareholding indicates a strong belief in the company's future prospects [2].