Investment Rating - The report initiates coverage on Jerry Holdings with a rating of "Buy" [1][2]. Core Insights - Jerry Holdings is a leading oil service equipment manufacturer in China, with core businesses spanning high-end oil and gas equipment manufacturing, engineering and technical services, natural gas equipment, and new energy sectors. The company has been actively developing new businesses in natural gas equipment and gas turbine units, establishing a multi-driver growth pattern [1][8]. - The global oil service industry is experiencing a supply-side constraint due to slow recovery in capital expenditure and workforce size among international oil service companies, with Schlumberger's capacity only at 50% of its peak in 2014. This results in limited supply elasticity in the short term [2]. - On the demand side, global oil and gas exploration and development expenditures remain at historical median levels, with a rigid demand for equipment and services driven by natural depletion rates of oil fields. The capital expenditure for oil and gas is expected to maintain long-term resilience under energy security constraints [2][59]. - The gas turbine market is characterized by a persistent supply-demand mismatch, with a robust outlook for continued growth driven by explosive increases in global electricity demand and accelerated data center construction [2][54]. Summary by Sections Company Overview - Jerry Holdings has established itself as a leader in the domestic oil service equipment market, leveraging its integrated equipment and service advantages to expand into overseas markets such as North America and the Middle East. The company has seen rapid growth in its natural gas and gas turbine businesses, which are becoming significant growth curves [16][21]. Financial Performance - The company has demonstrated strong resilience through cycles, with new orders increasing over 25 times since 2008. The stock of orders reached a historical high of 12.39 billion yuan in the first half of 2025, reflecting improved order execution efficiency [24][30]. - Revenue and net profit have shown a long-term upward trend, with a compound annual growth rate of 18.93% over the past decade, surpassing international oil service leaders [30][38]. Oil and Gas Equipment Business - Jerry Holdings maintains a solid position in high-end fracturing equipment, with significant overseas EPC contracts. The high-end equipment manufacturing segment accounted for 61.22% of total revenue in the first half of 2025, with a year-on-year growth of 22.42% [41][44]. - The company is the only Chinese enterprise providing a complete set of fracturing equipment to the North American high-end market, holding nearly 50% of the domestic market share [45]. Gas Turbine Business - The gas turbine segment is emerging as a key growth driver, with significant breakthroughs in commercial applications. The company has secured multiple contracts exceeding 1 billion yuan in the North American market, enhancing its competitive edge in industrial and data center power supply [54][56]. - Jerry Holdings has developed a comprehensive Gas to Power solution, integrating gas source processing, gas boosting, clean power generation, and intelligent control [55][58]. Industry Outlook - The oil service industry is undergoing a deep supply adjustment, with demand resilience supporting a recovery in market conditions. The global oil service market is projected to reach 316.1 billion USD by 2024, although this remains below the average levels seen from 2006 to 2014 [59][62].