Jereh Group(002353) 国信证券·2025-05-15 07:20Investment Rating - The report assigns an "Outperform the Market" rating to the company [7]. Core Views - The company is a global leader in oil and gas field equipment manufacturing and oilfield services, with a revenue CAGR of approximately 20.83% from 2010 to 2024 [1]. - The company is benefiting from the growing demand for unconventional oil and gas, with expected continuous revenue and profit growth due to equipment/service expansion and technological innovations [4]. - The international strategy is progressing smoothly, with significant breakthroughs in the Middle East and North America markets [3]. Summary by Sections Business Overview - In 2024, the company achieved revenues of 133.55 billion yuan, with a slight decline of 4.01% year-on-year, while net profit increased by 7.03% to 26.27 billion yuan [1][25]. - The high-end equipment manufacturing segment accounted for 69% of total revenue in 2024, with a growth rate of 12.71% [14][51]. Financial Analysis - The company has maintained a strong profitability profile, with a gross margin of 33.70% and a net margin of 20.11% in 2024, reflecting improvements in operational efficiency [29][25]. - The company’s net profit is projected to grow to 30.15 billion yuan in 2025, with a corresponding PE ratio of 12 [4][55]. International Expansion - The company’s overseas revenue grew from 13.77 billion yuan in 2017 to 60.37 billion yuan in 2024, with a CAGR of approximately 23.51% [3][42]. - Key contracts signed in 2024 include a 22 billion yuan project with Bahrain National Oil Company and a 6 billion USD investment in Iraq [3]. Investment Recommendations - The report forecasts that the company will benefit from trends such as increased equipment self-research, expansion of service categories, and technological advancements in electric and turbine fracturing equipment [4][51]. - The estimated reasonable valuation range for the company is between 38.22 and 47.04 yuan per share [4].