Jereh Group(SZ:002353) Orient Securities·2025-04-13 07:37Investment Rating - The report maintains a "Buy" rating for the company with a target price of 39.00 CNY for 2025 [5]. Core Views - The company is expected to achieve stable revenue and performance in 2024, with a significant increase in new orders and backlog, laying a foundation for growth in 2025 [2]. - Despite recent oil price fluctuations, the company is projected to see a steady performance, with a slight adjustment in revenue growth expectations due to trade conflicts and uncertainties [2]. - The forecasted net profit for the company from 2025 to 2027 is 30.75 billion CNY, 36.36 billion CNY, and 42.25 billion CNY respectively, with corresponding earnings per share of 3.00 CNY, 3.55 CNY, and 4.13 CNY [2]. Financial Performance Summary - In 2023, the company reported a revenue of 13,912 million CNY, with a year-on-year growth of 21.9%. For 2024, revenue is expected to decline to 13,355 million CNY, a decrease of 4.0% [3]. - The company's operating profit for 2023 was 2,932 million CNY, with a growth of 13.7%. The operating profit is projected to increase to 3,213 million CNY in 2024, reflecting a growth of 9.6% [3]. - The net profit attributable to the parent company for 2023 was 2,454 million CNY, with a growth of 9.3%. It is expected to rise to 2,627 million CNY in 2024, a growth of 7.0% [3]. - The company’s gross margin is projected to improve from 32.8% in 2023 to 34.9% in 2025, while the net margin is expected to stabilize around 19.7% from 2025 onwards [3]. Order and Market Performance - The company secured new orders worth 182.32 billion CNY in 2024, marking a year-on-year increase of 30.64%. The backlog of orders at the end of the reporting period was 101.55 billion CNY, up 34.52% [9]. - The company’s high-end equipment manufacturing revenue reached 91.80 billion CNY in 2024, a growth of 12.71%, maintaining its leading position in the oil and gas equipment sector [9]. - The overseas market continues to show promise, with significant new orders from major oil companies, indicating a robust pipeline for future revenue [9].