Valuation Analysis Report on Jereh Co., Ltd. (002353.SZ)
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Based on the obtained data, here is an in-depth valuation analysis of Jereh Co., Ltd.:
Jereh Co., Ltd. (Yantai Jereh Oilfield Services Group Co., Ltd.) is a leading enterprise in China’s oil and gas equipment services sector, with core businesses covering drilling and completion equipment, oil and gas engineering services, natural gas processing equipment, and gas turbine generator sets, etc. [0] Having深耕 the oil and gas equipment field for many years, the company has actively promoted strategic transformation in recent years, building a new pattern of coordinated development across three business segments: ‘Oil and Gas + Natural Gas + Power’.
- The traditional oil and gas equipment business faces cyclical fluctuations, so the company needs to find new growth engines
- Global energy transformation is accelerating, and demand for natural gas as a clean energy source continues to grow
- The explosive growth of AI computing power has driven a surge in power demand for data centers, bringing historic opportunities to the gas turbine power generation business
- Natural Gas Business:In H1 2025, revenue from natural gas-related businesses surged 112.69% YoY, with new orders growing by 43.28%. The company has built an integrated whole-industry-chain solution covering ‘gas development - purification and treatment - liquefaction, storage and transportation - end-use’ [1]
- AI Power Business:Since November 2025, the company has successively won gas turbine generator set orders from leading U.S. AI giants, with each contract amounting to over US$100 million, providing a total of more than 200MW of high-power generator sets to support the main power systems of data centers. One of these giants has potential subsequent demand of 1-2GW [1]
- Overseas Layout:The company’s business covers more than 70 countries and regions. In H1 2025, its overseas revenue reached RMB 3.295 billion, up 38.38% YoY, accounting for 47.75% of total revenue [1]
| Indicator | Value | Industry Comparison |
|---|---|---|
| Current Share Price | 72.97 RMB | - |
| Market Cap | 73.88 billion RMB | - |
| P/E (TTM) | 26.34x |
~18-22x for oil and gas equipment industry |
| P/B | 3.37x | ~2.0-2.5x for industry |
| EV/OCF | 18.11x | - |
| ROE | 13.06% | Excellent |
| Net Profit Margin | 18.04% | Excellent |
- Operating Profit Margin: 22.02%
- Current Ratio: 2.52 (sound financial position)
- Debt Risk: Low-risk rating
- Free Cash Flow: 1.515 billion RMB (positive)
Three scenario analyses based on DCF model:
| Scenario | Intrinsic Value | vs. Current Share Price |
|---|---|---|
| Conservative | 49.30 RMB | -32.4% |
| Base | 65.34 RMB | -10.5% |
| Optimistic | 97.25 RMB | +33.3% |
Probability-Weighted Value |
70.63 RMB |
-3.2% |
| Parameter | Conservative | Base | Optimistic |
|---|---|---|---|
| Revenue Growth Rate | 0% | 12.6% | 15.6% |
| EBITDA Margin | 24.1% | 25.4% | 26.6% |
| WACC | 9.9% | 9.9% | 9.9% |
| Terminal Growth Rate | 2.0% | 2.5% | 3.0% |
Based on analysts’ consensus forecasts:
| Year | Net Profit Attributable to Parent Company (RMB 100 million) | Forecast PE |
|---|---|---|
| 2025E | 31.64 | 22.91x |
| 2026E | 37.78 | 19.19x |
| 2027E | 44.49 | 16.29x |
- Natural Gas Business: H1 2025 revenue +112.69% YoY verifies high growth logic
- AI Power Business: Secured orders from North American AI giants (over US$100 million per order) with subsequent demand of 1-2GW
- Gas turbine capacity sold out until 2028 with full order backlog [1]
- Global natural gas supply pattern reshaping, strong demand for clean energy transformation
- Explosive AI data center power demand: North American data center power consumption expected to increase by ~240TWh by 2030 vs. 2024 (130% growth) [1]
- GEV gas turbine orders grew 112.63% YoY in 2024
- Overseas revenue accounts for 47.75% with continuous expansion in Middle East, Central Asia and North Africa markets
- Won large contracts such as Bahrain’s US$316 million natural gas增压 station project and Brunei’s onshore natural gas receiving terminal EPC project [1]
- ROE:13.06%, Net Profit Margin:18.04% (significantly higher than industry average)
- Positive free cash flow and healthy finances
- DCF Probability-Weighted Value:70.63 RMB
- Current Share Price:72.97 RMB
- Premium:3.2%
- 2025 forecast PE:22.91x (higher than traditional oil and gas equipment industry valuation center)
- Share price up over 103% YTD (valuation expansion already sufficient)
- 2025Q3 EPS:0.55 RMB (6.58% below expectation)
- Time lag between transformation business orders and performance release
- Crude oil and natural gas price fluctuation risk
- Overseas geopolitical risk affecting overseas business expansion
- Gas turbine business competition intensification risk
| Dimension | Evaluation |
|---|---|
Valuation Rationality |
Current PE of 26x is slightly higher than DCF base scenario, but overall reasonable considering high growth certainty of transformation businesses |
Growth Pricing |
Transformation businesses (natural gas + AI power) have strong high growth certainty, but their pricing in valuation is not yet sufficient |
Upside Potential |
~33% upside based on DCF optimistic scenario; medium-term valuation expansion potential based on 2027 forecast PE of 16.29x |
Risk-Reward Ratio |
Moderate risk-reward ratio; recommend accumulating on dips |
| Scenario | Target Price | Logic |
|---|---|---|
| Conservative | 55-60 RMB | Based on DCF conservative scenario, considering market sentiment discount |
| Base | 68-75 RMB | Based on DCF base scenario and 2025 forecast PE of 22x |
| Optimistic | 85-95 RMB | Based on DCF optimistic scenario and transformation business exceeding expectations |
- Delivery progress of North American AI giant orders
- Sustainability of natural gas business orders
- Overseas market expansion progress
- Contribution of gas turbine maintenance aftermarket
- Impact of intensified crude oil and natural gas price fluctuations on the company’s traditional business
- Gross margin pressure due to intensified competition in the gas turbine market
- Overseas geopolitical risks affecting overseas business expansion
- AI data center construction progress falling short of expectations
- Impact of exchange rate fluctuations on overseas revenue
[0] Jinling AI Financial Database - Company Overview, Financial Analysis and DCF Valuation Data of Jereh Co., Ltd. (002353.SZ)
[1] Sina Finance - “Jereh Co., Ltd. (002353): Drilling and Completion Leader Stable, ‘Natural Gas + Power’ Dual Engines Drive Growth” (December 26, 2025)
[3] Stock Market Dynamic Analysis Weekly - In-depth Research Report on Jereh Co., Ltd.
Insights are generated using AI models and historical data for informational purposes only. They do not constitute investment advice or recommendations. Past performance is not indicative of future results.
About us: Ginlix AI is the AI Investment Copilot powered by real data, bridging advanced AI with professional financial databases to provide verifiable, truth-based answers. Please use the chat box below to ask any financial question.