Investment Rating - The report recommends strong buy for Jerry Holdings and Neway Valve due to their potential in the Middle East oil service market [2]. Core Viewpoints - The deepening of the "Belt and Road" cooperation presents vast opportunities in the Middle East oil service market, with China's energy sector investments in the region projected to reach $168 billion from 2020 to 2024, including $50.28 billion in oil and gas projects [2][33]. - Jerry Holdings and Neway Valve have different product and business models, affecting their revenue recognition and customer onboarding speed [2][39]. - Both companies exhibit high management efficiency and technical barriers, with accelerated expansion in the Middle East [2][90]. Summary by Sections 1. Market Opportunities - The Middle East oil service market is estimated to be in the hundreds of billions, with the oil service equipment market at least in the tens of billions, indicating significant growth potential for Chinese oil service equipment companies [10][12]. - China is the largest importer of crude oil from the Middle East, with imports reaching 6.02 million barrels per day in 2023 [9]. 2. Investment and Construction Projects - From 2020 to 2024, China’s energy sector investments in six Middle Eastern countries (Saudi Arabia, Iraq, UAE, Kuwait, Qatar, Angola) are expected to total $50.28 billion, with a significant portion allocated to oil and gas projects [33][32]. - The report highlights the successful acquisition of numerous energy cooperation projects by Chinese EPC contractors in the Middle East since 2020 [33]. 3. Company Comparisons - Jerry Holdings focuses on high-end equipment and EPC projects, with longer delivery times averaging 1.5 years for equipment and over 2 years for EPC projects [39][62]. - Neway Valve specializes in standardized valve products with shorter production cycles of 3-6 months, benefiting from scale effects [62][75]. - Both companies are experiencing rapid order growth in the Middle East, with Jerry Holdings achieving significant project milestones and Neway Valve expanding its market share [2][75]. 4. Joint Strengths - Both companies are enhancing their presence in the Middle East, with Jerry Holdings and Neway Valve establishing production capacities to meet rising demand [2][90]. - The report notes that the oil service equipment industry is characterized by strong customer loyalty once initial projects are validated, particularly for Jerry Holdings [81].

Investment Rating - The report recommends a strong buy for Jerry Holdings and Neway Valve, highlighting their potential in the Middle Eastern oil service market [2]. Core Insights - The deepening of the "Belt and Road" cooperation presents vast opportunities in the Middle Eastern oil service market, with China's energy sector investments in the region projected to reach $168 billion from 2020 to 2024, including $50.28 billion in oil and gas projects [2][33]. - Jerry Holdings and Neway Valve differ in product and business models, affecting their revenue recognition and customer onboarding speeds. Jerry focuses on high-end equipment and EPC projects with longer delivery times, while Neway specializes in standardized valve products with shorter production cycles [2][39][62]. - Both companies exhibit high management efficiency and technical barriers, with accelerated expansion in the Middle East. They have established strong relationships with major oil companies, enhancing their market positions [2][90]. Summary by Sections 1. Market Opportunities - The Middle Eastern oil service market is valued at over $100 billion, with Chinese companies currently holding a low market share, indicating significant growth potential [10][12]. - China's oil service equipment exports to the Middle East have been increasing, with Neway's revenue from the region expected to grow substantially [75]. 2. Investment Projects - From 2020 to 2024, China has secured numerous energy cooperation projects in the Middle East, with a total investment of $502.8 billion across six countries [33][32]. - Major projects include Jerry's contracts with Kuwait Oil Company and upcoming contracts in Iraq and Bahrain, showcasing the company's growing influence in the region [52][56][59]. 3. Company Comparisons - Jerry Holdings operates on a project-based model requiring extensive customization, leading to longer cash flow cycles but stronger customer loyalty post-verification [78]. - Neway Valve benefits from a standardized product model, allowing for quicker revenue recognition and scalability, with a focus on expanding its market share in the Middle East [75][87]. 4. Future Outlook - The report anticipates continued growth in capital expenditures from major oil companies, providing a stable environment for Jerry and Neway to thrive [15][90]. - Both companies are expected to benefit from the increasing demand for oil service equipment and the ongoing energy transition in the Middle East [22][22].