Jereh Group(002353) 民生证券·2024-11-19 14:10Investment Rating - The report gives a "Buy" rating for the company, predicting a strong growth trajectory in the coming years [2][151]. Core Insights - The company is a leading private oilfield service equipment manufacturer in China, expanding into high-end markets in the U.S. and the Middle East [1][14]. - The company has demonstrated strong cross-cycle growth capabilities, with a CAGR of 22.99% in revenue and 18.47% in net profit from 2010 to 2023 [1][32]. - The oil service industry is experiencing a recovery, with increased capital expenditures expected in both domestic and international markets [1][45]. - The company has made significant progress in overseas markets, particularly in North America and the Middle East, establishing long-term partnerships with major oil companies [1][41][130]. - The company forecasts net profits of 26.99 billion, 31.42 billion, and 36.95 billion yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 14X, 12X, and 10X [1][151]. Summary by Sections Company Overview - The company was founded in 1999 and has evolved from selling imported oilfield equipment to developing and manufacturing specialized oilfield equipment [1][14]. - It has a comprehensive business model that includes equipment manufacturing, oilfield services, and environmental solutions [1][19]. Financial Performance - From 2010 to 2023, the company's revenue grew from 944 million yuan to 13.915 billion yuan, while net profit increased from 282 million yuan to 2.454 billion yuan [1][32]. - The company has maintained a stable growth trajectory, with a notable increase in revenue and profit during periods of high oil prices [1][32]. Industry Outlook - The oil service industry is expected to see increased demand due to high upstream capital expenditures in both domestic and international markets [1][45]. - The report highlights a favorable environment for oilfield services, driven by rising oil prices and increased exploration and production activities [1][74]. Market Expansion - The company has successfully penetrated the North American market, achieving significant sales and establishing a strong presence [1][41]. - In the Middle East, the company has formed strategic partnerships with major oil companies, enhancing its market share in high-end equipment manufacturing [1][130]. Profit Forecast and Valuation - The company projects steady growth in net profit over the next three years, with a focus on improving margins through increased overseas sales [1][151]. - The report provides a comparative analysis of PE ratios with similar companies in the industry, indicating a favorable valuation for the company [1][149].