Jereh Group(SZ:002353) GUOTAI HAITONG SECURITIES·2025-08-07 08:35Investment Rating - The investment rating for the company is "Accumulate" with a target price of 51.98 CNY [1][10]. Core Views - The company's performance accelerated in Q2 2025, with significant improvement in operating cash flow and a high increase in new orders supporting continuous growth. The natural gas business has emerged as the company's second growth curve [2][10]. Financial Summary - Total revenue for 2023 is projected at 13,912 million CNY, with a growth rate of 21.9%. The net profit attributable to the parent company is expected to be 2,454 million CNY, reflecting a 9.3% increase. The earnings per share (EPS) for 2025 is estimated at 3.06 CNY, with a projected price-to-earnings (PE) ratio of 17 [4][11]. Performance Highlights - In Q2 2025, the company achieved a revenue of 42.14 billion CNY, a year-on-year increase of 49.12%, and a net profit of 7.75 billion CNY, up 8.78% year-on-year. The operating cash flow net amount reached 31.44 billion CNY, a significant increase of 196.36% year-on-year [10][11]. Business Growth - The company secured new orders worth 98.81 billion CNY in the first half of 2025, a 37.65% increase year-on-year. The natural gas business has become a key growth driver, with revenues from this segment increasing by 112.69% year-on-year in H1 2025 [10][11]. Market Position - The company has a total market capitalization of 41,231 million CNY, with a current stock price of 40.27 CNY. The stock has shown a 52-week price range of 25.50 to 41.65 CNY [5][10].