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].