Jerry (002353): The boom in the oil service industry continues to improve performance and maintains high growth

Jerry (002353): The boom in the oil service industry continues to improve performance and maintains high growth

Event: The company released the third quarter report of 2019, and the first three quarters achieved revenue of 42.

4.1 billion, an annual increase of 45.

88%, net profit 9.

0.5 billion, an increase of 149 in ten years.

46%.

  The boom of the oil service industry continued to improve and its performance maintained a high growth trend: the company achieved revenue of 42 in the first three quarters of 2019.

4.1杭州夜网论坛 billion, an annual increase of 45.

88%, net profit 9.

0.5 billion, an increase of 149 in ten years.

46%, of which revenue in Q3 2019 was 16.

6.2 billion, an increase of 41 in ten years.

18%, net profit 4.

05 billion, a growth of 129 in ten years.

29%, high performance growth is mainly due to the improvement of the domestic oil service market boom. The company’s product line orders for drilling and completion equipment, maintenance and renovation, and accessories sales, photovoltaic technology services and other products continued to grow.

  High gross profit margin of drilling and completion business, and electric drive fracturing leading domestic counterparts: The company’s core business drilling and completion equipment mainly includes fracturing equipment, cementing equipment, coiled tubing equipment, etc., which has benefited significantly from the improvement of the domestic industry boom,2019年第三季度 公司毛利率和净利率为38。
89% and 24.

61%, an increase of 4 from the previous quarter of 2019H1.

05pct and 4.

79pct is mainly due to the rapid rise in drilling and completion equipment business with higher gross profit and the scale effect brought by the rapid growth of revenue.

In addition, the company’s electric drive fracturing equipment has advantages such as low cost, high efficiency and short delivery cycle. Its products are leading domestic counterparts. Through the promotion and application of electric drive fracturing technology, the company is 杭州桑拿网expected to win room for growth.

  Driven by the national energy security strategy, the prosperity of the domestic oil service industry continues to increase: Under the requirements of the national energy security strategy, three domestic barrels of oil (mainly PetroChina) have increased the intensity of domestic oil and gas resources exploration and development.

According to the three barrel oil plan, the total capital expenditure for exploration and development in 2019 is 3688-3788 trillion, an increase of 19-22%, of which unconventional oil and gas development is the core growth point.

On June 20, the supplementary notice of the “Interim Measures for the Management of Special Funds for Renewable Energy Development” issued by the Ministry of Finance will replace the incremental increase in the quantitative supplementation of shale gas, further enhancing the enthusiasm of oil companies for oil and gas exploration and development.
  Profit forecast and investment advice: We expect the company’s net profit for 2019-2021 to be 13 respectively.

4.6 billion, 18.

3.5 billion and 24.

7.0 billion, corresponding to 22 times, 16 times and 12 times the corresponding PE, maintaining the “buy” level.

  Risk reminder: International crude oil significantly reduces risks, domestic shale gas production is less than expected, etc.