Jereh Group(SZ:002353) HTSC·2025-10-24 04:19Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 61.88 [1][4]. Core Insights - The company reported a year-on-year revenue increase of 13.90% in Q3, achieving RMB 35.19 billion, and a net profit of RMB 5.67 billion, up 11.11% year-on-year. For the first three quarters of 2025, the total revenue reached RMB 104.20 billion, representing a 29.49% increase year-on-year, with a net profit of RMB 18.08 billion, up 13.11% year-on-year [1][2]. - The company has secured significant overseas orders, including an EPC project from Sonatrach SPA in Algeria, valued at approximately USD 850 million (RMB 6.1 billion), which is expected to support future growth [3][4]. - The company’s gross margin for the first three quarters of 2025 was 31.29%, a decrease of 3.43 percentage points year-on-year, primarily due to changes in product revenue structure and the delivery schedule of EPC projects [2][4]. Summary by Sections Financial Performance - In Q3 2025, the company achieved a revenue of RMB 35.19 billion, a year-on-year increase of 13.90%, but a quarter-on-quarter decrease of 16.49%. The net profit for the same period was RMB 5.67 billion, reflecting an 11.11% year-on-year increase and a 26.91% quarter-on-quarter decrease [1]. - For the first three quarters of 2025, the company reported a total revenue of RMB 104.20 billion, up 29.49% year-on-year, and a net profit of RMB 18.08 billion, which is a 13.11% increase year-on-year [1]. Order Acquisition - In July 2025, the company’s subsidiary received a project award from Sonatrach SPA for the Rhourde Nouss Boosting Project, valued at approximately USD 850 million (RMB 6.1 billion). This new order is expected to enhance the company's order backlog and support future revenue growth [3][4]. Profitability Metrics - The gross margin for the first three quarters of 2025 was reported at 31.29%, down 3.43 percentage points from the previous year. The Q3 gross margin was 29.52%, a decrease of 3.80 percentage points year-on-year [2][4].