Jereh Group(SZ:002353)2025-08-11 02:58Summary 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.