Jereh Group(002353) 国信证券·2025-05-15 08:35Investment Rating - The report assigns an "Outperform" rating to the company for the first time, with a reasonable valuation range of 38.22 to 47.04 CNY per share [6][4]. Core Insights - The company is a global leader in oil and gas field equipment manufacturing and oilfield services, with a revenue of 133.55 billion CNY in 2024, reflecting a CAGR of approximately 20.83% from 2010 to 2024 [1][13]. - The company has a strong competitive position in high-end equipment, maintaining the top market share in domestic fracturing, cementing, and coiled tubing sectors, and is the only Chinese company providing a full set of fracturing equipment to the North American high-end market [2][50]. - The international strategy is progressing smoothly, with significant breakthroughs in the Middle East and North America, leading to rapid growth in overseas revenue from 13.77 billion CNY in 2017 to 60.37 billion CNY in 2024, a CAGR of about 23.51% [3][41]. Financial Performance - In 2024, the company reported a revenue of 133.55 billion CNY, a year-on-year decrease of 4.01%, while the net profit attributable to shareholders was 26.27 billion CNY, an increase of 7.03% year-on-year [1][25]. - The gross margin and net margin for 2024 were 33.70% and 20.11%, respectively, showing improvements of 0.65 and 2.19 percentage points year-on-year [1][28]. - The company expects net profits for 2025 to reach 30.15 billion CNY, with a projected growth of 14.8% [54]. Business Segments - The high-end equipment manufacturing segment is expected to grow, with revenues projected to increase from 91.80 billion CNY in 2024 to 104.76 billion CNY in 2025, reflecting a growth rate of 14.11% [53][50]. - The oil and gas engineering and technical services segment is anticipated to recover, with revenues expected to grow from 32.93 billion CNY in 2024 to 38.25 billion CNY in 2025, a growth rate of 16.16% [51][53]. - Other business segments, including renewable energy and oilfield development, are expected to see modest growth, with revenues projected to increase by 5% annually [51]. Market Position - The company has established a strong foothold in both domestic and international markets, with overseas business revenue accounting for approximately 45.20% of total revenue in 2024 [41][3]. - The company has successfully completed several key projects in the Middle East, enhancing its reputation and market presence [3][4]. Future Outlook - The company is well-positioned to benefit from the increasing demand for unconventional oil and gas, with expectations of continued revenue and profit growth driven by equipment expansion, self-research advancements, and international market share increases [4][50]. - The projected revenue for 2025-2027 is expected to grow steadily, with net profits anticipated to reach 34.22 billion CNY in 2026 and 38.92 billion CNY in 2027 [54][55].