Jereh Group(SZ:002353) Guoxin Securities·2025-08-11 05:51Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company has shown strong growth in revenue and profit in the first half of 2025, with revenue reaching 6.901 billion yuan, a year-on-year increase of 39.21%, and net profit attributable to shareholders of 1.241 billion yuan, up 14.04% year-on-year [1] - The integration of equipment, engineering, and services is driving a strong turning point, with both domestic and international markets maintaining high levels of prosperity [2] - The company has successfully entered the Middle East and North Africa oil and gas EPC projects, opening up growth opportunities in equipment, engineering, and services [3] Financial Performance - In the first half of 2025, the company achieved a net operating cash flow of 3.144 billion yuan, a significant increase of 196.36% year-on-year, indicating strong cash discipline [1] - New orders and existing orders reached 9.881 billion yuan and 12.386 billion yuan respectively, with year-on-year growth of 37.65% and 34.76% [1] - The company’s revenue from high-end equipment manufacturing and oil and gas engineering and technical services was 4.224 billion yuan and 2.069 billion yuan, reflecting year-on-year increases of 22.42% and 88.14% respectively [2] Future Outlook - The company is expected to benefit from the European energy market's shift away from Russian gas and the demand for AI data center energy [3] - The profit forecasts for 2025 to 2027 have been adjusted upwards, with net profits projected to be 3.163 billion yuan, 3.795 billion yuan, and 4.445 billion yuan respectively [3] - The reasonable valuation range for the company has been raised to 52.53-61.79 yuan, with a corresponding PE ratio of 14/12/10 for the years 2025 to 2027 [3]