Jereh Group(002353) 东吴证券·2024-04-02 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant increase in orders and accelerated overseas business expansion, with 2023 revenue reaching 13.912 billion yuan, a year-on-year growth of 21.94% [3][4] - The company’s performance met expectations, with a robust order backlog and strong growth in overseas markets, particularly in North America and the Middle East [4][6] - The company is expected to maintain steady growth in profitability due to its overseas expansion and the increasing demand for unconventional oil and gas development in the domestic market [5][11] Financial Performance Summary - In 2023, the company achieved total revenue of 13.912 billion yuan, a 22% increase year-on-year, and a net profit attributable to shareholders of 2.454 billion yuan, up 9.3% [3][4] - The company’s gross profit margin and net profit margin were 33.0% and 17.9%, respectively, showing slight declines compared to the previous year [5] - The company’s overseas revenue reached 6.52 billion yuan, a remarkable growth of 60.6% year-on-year, accounting for 46.9% of total revenue [4][6] Order and Market Expansion - The company secured a total of 13.956 billion yuan in new orders in 2023, reflecting a year-on-year increase of 9.65% [4] - The North American market is identified as a significant growth area, with a strong demand for electric-driven fracturing equipment [6] - The company has established long-term partnerships with major clients in the Middle East, contributing to its increasing market share [6] Future Outlook and Valuation - The company is projected to achieve a net profit of 2.714 billion yuan in 2024, with a corresponding P/E ratio of 11.75 [2][11] - The company’s valuation is expected to remain flexible due to continuous order growth and the potential for increased profitability from its overseas operations [11]