Summary of Jerry Corporation Conference Call Company Overview - **Company**: Jerry Corporation - **Industry**: Oil and Gas, specifically focusing on natural gas power generation and related services Key Points and Arguments Market Position and Strategy - Jerry Corporation has secured production capacity from suppliers like Siemens and Geely, showcasing its leading position in the oil and petrochemical industry and its ability to acquire overseas EPC projects [2][3] - The company emphasizes its natural gas business, particularly in the Middle East, where capital expenditure is rapidly increasing, positioning power generation as a potential third growth curve [2][3] Financial Performance and Business Model - The gas turbine power generation business has two main profit models: leasing and sales. The leasing model generates annual rent of approximately 2 to 2.5 million RMB per megawatt, with gross margins of 70% to 80% and net profit margins of 40% to 50%, significantly higher than the sales model [2][6] - Jerry Corporation currently has 300 megawatts in the leasing market and has signed contracts for an additional 600 megawatts, totaling over 900 megawatts of capacity. If fully leased, this could generate annual revenue of 2 billion RMB, corresponding to around 1 billion RMB in net profit, indicating substantial profit elasticity [2][6] Expansion Plans - The company plans to expand its power generation business into regions like the Middle East and North Africa, which have significant electricity demand gaps, providing ample growth opportunities. It has already secured a 6 billion RMB order in Algeria for gas turbine equipment [4][8] - The goal is to elevate the power segment's revenue to match the current drilling and completion equipment revenue level of approximately 8 billion RMB, aiming for a net profit of around 1.6 billion RMB [4][8] Competitive Advantages - Jerry Corporation's success in entering the North American data center market is attributed to its modular manufacturing model and customization capabilities. The gas turbine units consist of a gas turbine and generator, with the turbine accounting for 50% to 60% of total costs [5] - Major manufacturers like Siemens outsource small gas turbine assembly to Jerry due to lower manufacturing barriers and the high labor costs involved in the assembly process, where Jerry has a cost advantage [5] Future Outlook - The company is transitioning from a traditional oil service provider to a comprehensive energy solutions provider, with a focus on innovation and research and development to enhance its competitive strength and long-term growth potential [8] - Jerry Corporation's valuation is currently low, with a projected P/E ratio of only 13 times for the next year (2026), but the new business opportunities are expected to enhance performance and long-term growth prospects [3]