Jereh Group(SZ:002353) Southwest Securities·2024-11-07 04:25Investment Rating - The investment rating for the company is "Buy" (maintained) [1]. Core Views - The company has secured a significant EPC project worth $920 million (approximately RMB 6.555 billion) from ADNOC for digital transformation of oil fields, highlighting its competitive edge in the Middle East [1][2]. - The project aims to upgrade existing facilities in three oil fields to achieve digital operations, enhancing production efficiency and safety while reducing maintenance and labor costs [2]. - The company has demonstrated strong recognition in the high-end oil and gas market in the Middle East, with multiple large contracts awarded in 2024, indicating a growing market share and business scale [3]. - Profit forecasts for 2024-2026 show a compound annual growth rate (CAGR) of 14% for net profit, with projected net profits of RMB 2.684 billion, RMB 3.221 billion, and RMB 3.631 billion for the respective years [3]. Financial Summary - Revenue projections for 2024-2026 are RMB 14.598 billion, RMB 17.149 billion, and RMB 19.157 billion, with growth rates of 4.93%, 17.48%, and 11.71% respectively [4]. - The company's earnings per share (EPS) are expected to be RMB 2.62, RMB 3.15, and RMB 3.55 for 2024-2026 [4]. - The price-to-earnings (PE) ratio is projected to decrease from 14 in 2024 to 10 in 2026, indicating potential undervaluation [4].