Investment Rating - The report maintains a "Buy" rating for the company, with an adjusted target price of 51.17 RMB, up from a previous value of 41.58 RMB, reflecting a 17 times PE for 2025 [5][7]. Core Insights - The company reported a revenue of 6.901 billion RMB for H1 2025, representing a year-over-year increase of 39.21%, with a net profit of 1.241 billion RMB, up 14.04% year-over-year [1]. - The natural gas business has shown significant growth, with a revenue increase of 112.69% year-over-year, indicating a strong second growth curve for the company [1]. - The company has secured new orders worth 9.881 billion RMB in H1 2025, a 37.65% increase year-over-year, supporting future performance [3]. Summary by Sections Revenue and Profitability - In H1 2025, the company achieved a revenue of 6.901 billion RMB, with a net profit of 1.241 billion RMB, and a non-recurring net profit of 1.231 billion RMB, reflecting increases of 39.21%, 14.04%, and 33.90% respectively [1]. - The overall gross margin decreased to 32.19%, down 3.40 percentage points year-over-year, primarily due to a lower proportion of high-margin high-end equipment business [2]. Order Growth and Market Expansion - The company’s new orders reached 9.881 billion RMB in H1 2025, marking a 37.65% increase year-over-year, with total backlog orders at 12.386 billion RMB, up 34.76% [3]. - The overseas revenue for H1 2025 was 3.295 billion RMB, a 38.38% increase year-over-year, indicating successful global expansion [4]. Financial Forecast and Valuation - The forecast for net profit for 2025-2027 has been adjusted upwards by 1.56%, 5.49%, and 5.25% to 3.086 billion RMB, 3.731 billion RMB, and 4.341 billion RMB respectively, with a CAGR of 18.59% [5]. - The report suggests a valuation premium based on the growth potential of the natural gas business, leading to an increased target price [5].

Industry Overview - International crude oil futures rose over 2% following U.S. President Trump's statement regarding potential tariffs on Russia if no progress is made in ending the Russia-Ukraine conflict [1] - Trump indicated that he is not concerned about the potential impact of sanctions on the oil market or prices, and plans to increase domestic oil production to offset any effects [1] Demand Insights - Huatai Securities reported signs of recovery in oil demand in both China and the U.S. since June, with U.S. refinery utilization rates remaining high and diesel inventories dropping to near three-year lows [1] - In June, China's crude oil imports and apparent diesel consumption showed month-on-month increases, with major refineries operating at over 80% capacity [1] - According to the IEA, China's crude oil inventory saw one of the largest quarterly increases on record in Q2 2025, primarily due to a significant rise in commercial crude oil stocks, which is crucial for ensuring long-term energy security [1] - Q3 is expected to be a peak season for travel and electricity demand in the Northern Hemisphere, with historical data indicating that the increase in crude oil demand for power generation from May to August could total 900,000 barrels per day, potentially exacerbating current market tensions [1] Company Highlights - Neway Valve is identified as a leading company in the industrial valve sector [1] - Jereh Group is recognized as a global leader in high-end oil and gas field equipment, engineering, and technical services [1]

Summary of Jerry Holdings Conference Call Company Overview - **Company**: Jerry Holdings - **Industry**: Oil and Gas Equipment and Engineering Key Points Project Acquisition - Jerry Holdings secured a natural gas booster EPC project in Algeria worth 6.1 billion RMB, expected to sign a formal contract in August 2025 with a 36-month execution period [2][3][4] - The project consists of 75% design and procurement and 25% construction, with over 70% of core equipment produced in-house [2][3] Financial Projections - Expected gross margin over 20% and net margin over 10% from the Algeria project, contributing over 6 billion RMB in revenue and several hundred million RMB in profit over the next three years [2][4] - Projected net profits for 2025, 2026, and 2027 are 3 billion, 3.4 billion, and 4 billion RMB respectively, with year-on-year growth rates of 15%, 13%, and 17% [3][6] International Business Growth - International revenue is projected to account for 45% of total revenue by 2024, with overseas orders growing at a compound annual growth rate (CAGR) of approximately 50% [2][5][9] - The company has established a strong presence in the Middle East, North America, Central Asia, and North Africa, with the fastest growth in the Middle East and Central Asia [2][5][9] Natural Gas Sector Expansion - Natural gas-related business is rapidly growing, expected to make up about 40% of overseas orders in 2024, with an average annual growth rate exceeding 80% in recent years [2][10] - The company has built a natural gas industrial park to triple production capacity, supporting future equipment production [5][10] Market Positioning - Jerry Holdings has a significant market share in specific products, such as completion equipment in Kuwait, where it reaches 60%-70% [2][11] - The company is strategically addressing tariff risks in North America through local production and capacity layout [3][12] Future Growth Potential - The company’s performance is expected to remain strong against a backdrop of high oil prices, with ongoing expansion in North Africa, the Middle East, and other regions [7][17] - The North American market, while currently only 10% of total revenue, is seen as strategically important, particularly for electric fracturing equipment [12][16] Competitive Advantages - Jerry Holdings' execution capabilities have been recognized through the Algeria project win, enhancing its position in the North African and Middle Eastern integrated oil and gas field development market [8][17] - The Dubai factory, set to be operational by the end of the year, will enhance global competitiveness and address potential tariff issues [13][17] Revenue Streams - The power generation business, while currently small, is expected to grow significantly, with projected revenues reaching 10 billion RMB in the next three to five years [15][16] - The aftermarket for fracturing equipment is anticipated to become a significant growth area starting in 2025 [15][16] Valuation and Investment Opportunity - The company is currently undervalued with a PE ratio of approximately 12-13 times, indicating strong investment potential given the expected growth rates [6][17][18]

Group 1: Company Overview and Global Strategy - The company has significantly increased its overseas business, with overseas revenue accounting for 45.20% in 2024, covering over 70 countries and regions [3] - The Middle East is a key strategic market, with a complete business chain established, including high-end equipment manufacturing and oil and gas engineering services [3] - Recent major contracts include a $920 million digital transformation project in the UAE and a $316 million gas booster station project in Bahrain [3] Group 2: Localization and Capacity Building - The company is enhancing its local production and service capabilities in overseas markets, including a new production and office base in Dubai [4] - In North America, the company has expanded its existing facilities and is building local capabilities in production, research, and after-sales service [4] - The company has over 1,000 foreign employees, contributing to the localization of its operations and enhancing its international strategy [4] Group 3: Response to Trade Policies - The company has a minimal direct export revenue to the U.S. and has established a production base there, mitigating the impact of U.S. tariffs [5] - It has diversified its supply chain and pre-stocked raw materials to enhance resilience against trade environment changes [5] Group 4: Industry Focus and Innovation - The company focuses on oil and gas and renewable energy sectors, aiming to maintain its leadership in high-end equipment through technological innovation [6] - It has launched the AI·R FRAC intelligent fracturing system, which has been applied in major oil and gas production areas in China [6] - The company has completed a lithium battery recycling project, enhancing its capabilities in the renewable energy sector [6] Group 5: Financial Management and Shareholder Returns - The company emphasizes maintaining healthy cash flow and has implemented measures to improve inventory and receivables management [10] - The 2024 dividend plan includes a cash dividend of 6.9 yuan per 10 shares, with a commitment to increasing the dividend ratio and frequency [12] - The company has executed share buyback plans for three consecutive years, reflecting confidence in its future development [12]

Group 1: Company Overview - The company has a significant global presence, operating in over 70 countries and regions, with overseas business revenue accounting for 45.20% in 2024 [4] - The Middle East is a key strategic market, with a comprehensive business chain established, including high-end equipment manufacturing and oil and gas engineering services [4] Group 2: Recent Achievements - The company has secured major contracts, including a $920 million digital transformation project for ADNOC in the UAE and a $316 million gas booster station project for Bahrain National Oil [4] - The company's brand recognition has been steadily increasing due to successful project completions and market penetration [4] Group 3: Localization and Capacity Building - The company is enhancing its local capabilities in overseas markets, including the establishment of a new production and office base in Dubai to improve delivery and after-sales service [5] - In North America, the company has expanded its production capacity and local workforce since establishing its U.S. subsidiary in 2008, ensuring robust support for equipment delivery and after-sales service [5] Group 4: Strategic Response to Market Conditions - The company is actively addressing the impacts of U.S.-China tariff policies by continuing to execute its internationalization strategy, focusing on markets in the Middle East, Central Asia, and Asia-Pacific [6]

Core Viewpoint - The stock price of Jerry Holdings (002353.SZ) reached its daily limit due to strong financial performance, with a reported revenue of 13.355 billion yuan and a net profit of 2.627 billion yuan for 2024, marking a continuous growth trend over three years [1][4]. Financial Performance - In 2024, Jerry Holdings achieved a revenue of 13.355 billion yuan, a year-on-year decrease of 4.01%, while the net profit attributable to shareholders was 2.627 billion yuan, reflecting a year-on-year increase of 7.03% [4]. - The company reported a significant increase in operating cash flow, reaching 2.594 billion yuan, which is a 147.30% increase year-on-year [2][9]. - The gross profit margin and net profit margin for 2024 were 33.70% and 20.11%, respectively, both showing an increase compared to the previous year [9]. Order and Market Dynamics - Jerry Holdings secured new orders totaling 18.232 billion yuan in 2024, representing a year-on-year growth of 30.64%, with nearly half of these orders coming from overseas markets [3][5]. - The company’s revenue from domestic and international markets was 7.318 billion yuan and 6.037 billion yuan, accounting for 54.80% and 45.20% of total revenue, respectively [4]. Research and Development - The company invested over 500 million yuan in R&D in both 2023 and 2024, maintaining a strong focus on innovation [8][9]. - As of the end of 2024, Jerry Holdings held a total of 1,914 authorized patents, including 503 invention patents [8][9]. Financial Health - As of the end of 2024, the company had a debt-to-asset ratio of 38.36%, with total monetary funds exceeding 8 billion yuan, which is sufficient to cover all debts [9]. - The company proposed a cash dividend of 829 million yuan for 2024, with a dividend payout ratio of 31.57%, marking the first time since 2018 that the annual dividend payout ratio exceeded 30% [10].