Jereh Group(002353) 天风证券·2025-04-23 12:15Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [5][16]. Core Views - The company reported excellent performance in Q1 2025, achieving revenue of 2.687 billion yuan, a year-on-year increase of 26.07%, and a net profit attributable to shareholders of 466 million yuan, up 24.04% year-on-year [1]. - The company is advancing its globalization strategy, with significant improvements in overseas market sales and a 65.37% year-on-year increase in new orders [2]. - The company has successfully secured major contracts in various regions, including a significant order from a strategic client in Central Asia and multiple projects in the Middle East [3]. - The company is demonstrating confidence in its operational development through stock buybacks and plans for shareholding incentives [4]. Financial Performance - In Q1 2025, the company achieved a gross margin of 31.43%, a decrease of 4.29 percentage points year-on-year, and a net profit margin of 17.79%, down 0.2 percentage points year-on-year [1]. - The operating cash flow improved significantly, with a net cash flow from operating activities of 1.067 billion yuan, an increase of 858 million yuan year-on-year [1]. - The company’s net profit forecasts for 2025, 2026, and 2027 are adjusted to 2.94 billion yuan, 3.43 billion yuan, and 4.07 billion yuan, respectively, reflecting a positive outlook on its core competitive advantages [4]. Market Expansion - The company is focusing on enhancing its market presence by collaborating across business segments to target strategic global clients, leading to improved win rates and market share [2]. - A significant investment of 120 million USD was approved for the establishment of a high-end oil and gas equipment manufacturing base in Dubai, aimed at serving the Middle East, North Africa, and Southeast Asia [2]. Order Performance - The company has shown strong order performance across multiple regions, including successful bids in domestic markets and significant contracts in North America and the Middle East [3].