Jereh Group(SZ:002353) Orient Securities·2025-04-13 08:23Investment Rating - The report maintains a "Buy" rating for the company with a target price of 39.00 CNY for 2025 [5]. Core Insights - The company is expected to achieve stable revenue and performance in 2024, with a significant increase in new orders and backlog orders, laying a foundation for revenue and performance growth in 2025 [2]. - The company’s 2025-2027 net profit forecasts are 3.075 billion CNY, 3.636 billion CNY, and 4.225 billion CNY respectively, with corresponding earnings per share of 3.00 CNY, 3.55 CNY, and 4.13 CNY [2]. - The report notes a slight downward adjustment in revenue growth expectations due to trade conflicts and uncertainties, while gross and net profit margins are slightly adjusted upwards due to scale effects and changes in exchange rates [2]. Financial Performance Summary - In 2023, the company achieved a revenue of 13,912 million CNY, with a year-on-year growth of 21.9%. For 2024, revenue is projected to decline to 13,355 million CNY, a decrease of 4.0% [3]. - The operating profit for 2023 was 2,932 million CNY, with a year-on-year growth of 13.7%. The operating profit is expected 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 year-on-year growth of 9.3%. It is projected to rise to 2,627 million CNY in 2024, a growth of 7.0% [3]. - The company’s gross margin is expected to improve from 32.8% in 2023 to 33.7% in 2024, while the net margin is projected to increase from 17.6% to 19.7% in the same period [3]. Order Growth and Market Position - 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 reached 101.55 billion CNY, up 34.52% year-on-year [9]. - The company continues to lead in high-end equipment manufacturing, with a revenue of 91.80 billion CNY in this segment, reflecting a growth of 12.71% [9]. - Despite a decline in revenue from oil and gas engineering and technical services, new orders in this segment have doubled, indicating ongoing progress in overseas markets [9].