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Jerry Shares (002353): Profitability has improved significantly and rapid growth in the new decade

Jerry Shares (002353): Profitability has improved significantly and rapid growth in the new decade

1H19 results are in line with our expectations. Jerry shares announced the first half of 2019 results: operating income 25.

8 ‰, an increase of 49 in ten 天津夜网 years.

1%; net profit attributable to mother 5.

0 million yuan, an increase of 168 in ten years.

6%, corresponding to a relative profit of 0.

52 yuan, in line with our expectations.

Revenue from the three major businesses increased rapidly, and gross profit margins increased significantly.

1H19’s equipment manufacturing and technical services revenue was 18.

7 ‰, an increase of 51 in ten years.

8%, gross profit margin increased by 8 per second.

9ppt to 36.

0%, we estimate that drilling and completion equipment, coal technology services revenue will increase by about 70% / 50% to more than 10/5 billion US dollars each year, gross profit margin is expected to increase by about 10/8 ppt.

Revenue from maintenance, retrofitting and accessories sales increased by 45% to 5 per year.

3 ppm, gross margin increased by 1.

9ppt to 31.

4%.

1H19’s consolidated gross profit margin was 34.

8%, an increase of 7 per year.

7ppt.

During the period, the expense ratio decreased significantly, and cash flow was under short-term pressure.

Benefiting from scale effects and refined management, sales in 1H19 increased management costs by 10%.

2% / 8.

0%, sales and management expense ratios decreased by 2 respectively.

3/1.

8ppt to 6.

5% / 4.

6%.

1H19 company net profit 19.

4%, an increase of 8 per year.

6ppt.

1H19 net cash purity for operating activities is optional 9.

1 trillion, a net increase of 0 over 1H18.

5 billionths of a second.
The increase of 5 trillion was mainly due to the company’s increase in the stock of raw materials and new product spare parts such as electric drive fracturing.

At the end of the first half of the year, the company’s inventory surplus was 35.

7 trillion, an increase of 13 over the beginning of the year.

10,000 yuan, raw materials, work in progress increased by 4.

3/6.
10,000 yuan.
Development Trend Domestic shale gas extraction continues to boom.

The implementation of the domestic oil and gas “increasing reserves and production” strategy has greatly reduced the cost of shale gas development, which will continue to drive the acceleration of domestic oil and gas exploration and development and the growth of oil and gas equipment demand.Yuan, the development cost of nearly 10,000 yuan fell 4-5 years ago).

The new millennium has continued to grow rapidly.

1H19 Jerry shares a new ten-year order.

70,000 yuan, an increase of 30 in ten years.

6%, continued to maintain rapid growth (we expect a slight distortion of the growth rate from 35% to 40% earlier from January to May, mainly due to the higher base of 6M18).

Among them, the company disclosed that orders for drilling and completion equipment have gradually increased by more than doubled; we expect that new breakthrough orders for internal upgrade technology service business are also expected to double.

Earnings forecast and forecast We maintain the company’s 2019 / 20e earnings forecast and forecast1.

21/1.

58 yuan unchanged.

The company’s current consensus corresponds to 21.

6 times 2019 P / E ratio and 16.

6 times 2020 price-earnings ratio.

Maintain “Outperform” rating and target price of 33.

80 yuan, corresponding to 2019 / 20e P / E is 28x / 21x, which is 28 compared with the current progress.

6% upside.

Risks Domestic oil and gas companies’ procurement tenders fell short of expectations, and international oil prices fell sharply.