Jereh Group(002353) 长江证券·2025-04-20 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 13.355 billion yuan for 2024, a decrease of 4.0% year-on-year, while the net profit attributable to shareholders reached 2.627 billion yuan, an increase of 7.03% year-on-year [2][5] - The company has seen an improvement in order structure and profitability, with effective control over period expenses, and is actively pursuing internationalization strategies, leading to significant breakthroughs in overseas markets [2][5] - The company has a substantial backlog of orders, with contract liabilities increasing significantly, indicating a potential turning point in performance [2][5] Summary by Sections Financial Performance - In Q4 alone, the company achieved a revenue of 5.308 billion yuan, a year-on-year increase of 2.95% and a quarter-on-quarter increase of 71.8%, with a net profit of 1.029 billion yuan, up 15.51% year-on-year [2][5] - The gross profit margin for 2024 was 33.7%, an increase of 0.65 percentage points year-on-year, while the net profit margin was 20.11%, up 2.19 percentage points year-on-year [12] Order and Market Expansion - The company secured new orders worth 18.232 billion yuan in 2024, a year-on-year increase of 30.64%, with overseas orders growing by 65.37% [12] - Significant contracts include a 6.555 billion yuan project with ADNOC and a 3.16 billion USD (approximately 22 billion yuan) contract with BAPCO [12] Future Outlook - The company is expected to benefit from the increasing domestic demand for unconventional oil and gas extraction, positioning itself as a leader in the fracturing equipment sector [12] - EPS forecasts for 2025-2027 are 3.05 yuan, 3.48 yuan, and 3.83 yuan, with corresponding PE ratios of 10.2X, 8.9X, and 8.1X [12]