Summary of the Conference Call Transcript Company Overview - **Company Name**: Jerry Corporation (杰瑞股份) - **Industry**: Oilfield Equipment and Services - **Stock Code**: 002353.SZ - **Market Capitalization**: Rmb 41.2 billion / US$ 5.74 billion - **Listing Date**: February 2010 on Shenzhen Stock Exchange - **Main Business**: Manufacturing of oilfield specialized equipment, maintenance and repair of oilfield and mining equipment, and oilfield engineering technical services [10][21] Key Financial Performance - **Revenue**: Rmb 6.9 billion in the first half of the year, a year-on-year increase of 39.2% [1] - **Net Profit**: Rmb 1.24 billion, a year-on-year increase of 14% [1] - **Net Profit Excluding Non-recurring Items**: Rmb 1.23 billion, a year-on-year increase of 34% [1] - **Q2 Net Profit Excluding Non-recurring Items**: Rmb 770 million, a year-on-year increase of 37%, exceeding market expectations [1] - **Gross Margin**: 32.2%, down 3.6 percentage points year-on-year due to changes in revenue structure [1] Business Segments Performance Natural Gas Business - **Revenue**: Nearly Rmb 2 billion, a year-on-year increase of 112.69% [2] - **Gross Margin**: Increased by 5.61 percentage points [2] - **New Orders**: Increased by 43.28% year-on-year, excluding major projects in Mansouria and Algeria [2] Overseas Business - **Revenue**: Rmb 3.295 billion, a year-on-year increase of 38.38% [2] - **New Orders**: Increased by 24.16% year-on-year, excluding major projects [2] Cash Flow - **Operating Cash Flow**: Increased by 196% to Rmb 3.14 billion [2] - **Dividend Proposal**: Rmb 0.15 per share [2] Future Outlook - **Annual Guidance**: No changes; expected double-digit growth in orders, revenue, and profit [3] - **High-end Equipment Segment**: Expected revenue growth with stable gross margin [3] - **New Energy Materials Segment**: Confidence in turning profitable next year [3] - **Natural Gas Business**: Targeting a doubling of revenue this year [3] - **Dubai Factory**: Accelerating construction to match the rapid growth of natural gas orders, expected completion by year-end [3] - **U.S. Tariff Impact**: Core components in the U.S. can be used until mid-next year; future manufacturing will be done in Dubai [3] Valuation and Investment Rating - **Target Price**: Rmb 48 per share, maintaining a "Buy" rating [4] - **Valuation Method**: Based on DCF with WACC of 8.09% [4] Important Metrics - **12-Month Rating**: Buy [5] - **Current Stock Price**: Rmb 40.27 [5] - **52-Week Price Range**: Rmb 41.65 - 25.50 [5] - **Projected Stock Price Increase**: 19.2% [9] - **Projected Dividend Yield**: 1.5% [9] - **Projected Total Return**: 20.7% [9] Risks - **Oil Price Risk**: Demand for oil services and equipment is directly affected by oil company capital expenditures, which are closely tied to oil prices [11] Analyst Information - **Analysts**: Guo Yifan, Wen Ruoxi, Li Weizhen [6] This summary encapsulates the key points from the conference call, highlighting the company's performance, business segments, future outlook, valuation, and associated risks.