Jereh Oilfield Services (002353 CH) Hold: We turn more positive, but still see valuation as fair

研报英文原文证据摘录

Jereh Oilfield Services (002353 CH) Hold: We turn more positive, but still see valuation as fair

clude it in our earnings forecasts.

52-WEEK PRICE (CNY)

Good company, great opportunity, but long-term growth could be hard to

sustain: We now provide a more detailed forecast for Jereh’s gas turbine business in 200.00

2026-28e (see pages 3-6 for details): (1) we are less positive on Jereh’s factory-new 108.00

OEM gas turbine package business due to difficulty in procuring new supply; (2) we 16.00

are more positive on its refurbished retired jet engine business with FTAI (although 06/25 Target price: 131.80 12/25 High: 173.66 Low: 33.95 Current: 06/26159.14

we expect progress to be slower than management targets); and (3) we forecast a

decent growth outlook for its second-hand gas turbine cross-border dealer and Source: LSEG IBES, HSBC Qianhai Securities estimates

packaging business in 2026-28e, given severe supply shortages in the US. Overall,

we acknowledge that industry conditions are strong and that many investors are Dun Wang*, CFA, CPA (Reg. No. S1700519060002) Analyst, A-share Industrials & Renewables Research

focused on Jereh’s significant growth in 2026-28e. However, we find it difficult to HSBC Qianhai Securities Limited

dun.wang@hsbcqh.com.cn

convince ourselves that this packaging business can continue to grow in 2029-31. +86 21 5066 2027

This matters in our DCF valuation model, and the cyclicality of the growth outlook Corey Chan* (Reg. No. S1700518100001)

weighs on our target price. Head, A-share Industrials & Renewables Research

HSBC Qianhai Securities Limited

Raise 2026-28e earnings estimates and target price; maintain Hold rating: We corey.chan@hsbcqh.com.cn

+86 21 5066 2001

increase our 2026-28e net profit estimates by 7.2%, 32.2% and 25.4%, respectively,