Jereh Group(002353) 海通证券·2024-09-01 08:48Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights steady growth in new orders and significant progress in overseas strategies, indicating a positive outlook for the company's future performance [2][5] Financial Performance Summary - For the first half of 2024, the company's revenue was 4.957 billion yuan, a year-on-year decrease of 8.54%, while the net profit attributable to the parent company was 1.088 billion yuan, an increase of 4.33% [5] - In Q2 2024, the company's revenue was 2.826 billion yuan, down 10.01% year-on-year, with a net profit of 713 million yuan, up 3.05% year-on-year [5] - The gross margin and net margin for the first half of 2024 were 35.83% and 22.47%, respectively, showing improvements of 0.15 percentage points and 2.70 percentage points year-on-year [5] - The operating cash flow for the first half of 2024 was 1.061 billion yuan, a significant improvement from -511 million yuan in the same period last year [5] Revenue Breakdown - The revenue from oil and gas equipment manufacturing and technical services was 4.099 billion yuan, down 11.69% year-on-year, while the revenue from maintenance and trade parts increased by 18.37% to 740 million yuan [5] - Environmental services revenue decreased by 32.99% to 908 million yuan, while other business revenue increased by 49.73% to 277 million yuan [5] Cost Control and Financial Metrics - The company's expense ratio for the first half of 2024 was 12.21%, an increase of 3.04 percentage points year-on-year, with financial expenses primarily affected by reduced foreign exchange gains [5] - The financial expense ratio showed significant variation, with foreign exchange gains of 20.95 million yuan, down from 65.60 million yuan in the previous year [5] Order Growth and Overseas Strategy - The company secured new orders worth 7.179 billion yuan in the first half of 2024, a year-on-year increase of 18.92%, with total backlog orders amounting to 9.191 billion yuan as of June 30, 2024 [5] - The overseas market saw significant growth, with successful acquisition of major natural gas project orders in Central Asia and the delivery of the first set of electric fracturing equipment in North America [5] Earnings Forecast and Valuation - The forecasted net profit for 2024, 2025, and 2026 is 2.768 billion yuan, 3.294 billion yuan, and 3.829 billion yuan, representing year-on-year growth rates of 12.8%, 19.0%, and 16.2% respectively [7] - The company is assigned a PE valuation of 13-15 times for 2024, with a reasonable price range of 35.15-40.55 yuan per share, and a market capitalization range of 36-41.5 billion yuan [7][10]