Yantai Jereh - A: Strengthening visibility of AIDC power equipment supply; the largest AI-related new orders on record; upgrade to OW

Research evidence excerpt

Yantai Jereh - A: Strengthening visibility of AIDC power equipment supply; the largest AI-related new orders on record; upgrade to OW

Lei Mu Asia Pacific Equity Research

(86-21) 6106 6319 23 July 2026

lei.mu@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Yantai Jereh Oilfield is an integrated oilfield service provider

offering equipment and services such as fracturing, drilling,

maintenance, engineering and environmental management,

with revenue and profit focused on equipment manufacture

and oil & gas engineering and technical services. In recent

years Jereh has built an integrated natural gas development

ecosystem, capturing growing demand across the international

industrial chain. In addition, its breakthrough into the AIDC

data center power equipment market has created a meaningful

new earnings pillar. YTD 1m 3m 12m

Abs 73.4% -29.3% 0.6% 212.9%

Rel 76.0% -22.2% 6.4% 205.0% Our bullish outlook is based mainly on the positives of: 1)

Jereh’s AIDC data center power equipment wins highlighting

Company Data its ability to leverage modular equipment expertise for the

Shares O/S (mn) 958 high-growth AI data center power supply market in the US;

52-week range (Rmb) 176.59-38.08

Market cap ($ mn) 17,386 and 2) Jereh’s integrated gas development ecosystem

Exchange rate 6.77 capturing growing demand from the international gas

Free float (%) 53.4% industrial chain. Therefore, we rate the stock OW.

3M ADV (mn) 19.71

3M ADV ($ mn) 419.8

Volatility (90 Day) 75 Our Dec-27 PT of Rmb162 is based on a 32.4x one-year

Index SSE forward P/E, below Jereh’s three-year high P/E valuation of

BBG ANR (Buy | Hold | Sell) 24|2|0 39.2x; this reflects our positive view on Jereh’s AI-related

Key Metrics (FYE Dec) new orders and the mildly negative impact of China’s frac