Jerry (002353)： Performance in line with expectations to usher in China’s shale gas revolution
Posted On 03/24/2020
Jerry (002353): Performance in line with expectations to usher in China’s shale gas revolution
Guide to this report: The company’s interim results are in line with market expectations.
The company has outstanding competitive advantages, benefiting from the exploration expansion plan of PetroChina beyond history, and welcoming China’s shale gas revolution.
Investment Highlights: Conclusion: The company’s interim report results are in line with market expectations.
Orders in the first half of the year increased by 30 per year.
5%, orders for drilling and completion equipment increased by more than 100%, the volume and price of orders rose, continuing high growth.
We maintain our judgment that the EPS for 2019-21 will be 1.
96 yuan, maintaining a target price of 32.
02 yuan, overweight.
The company’s interim report performance was in line with expectations, and equipment orders and prices rose.
① The company’s 2019 interim report revenue is 25.
800 million US dollars, an annual increase of 49%; net profit attributable to mothers5.
0 million yuan, an increase of 169% in ten years; net profit of non-attributed mothers4.
69 ppm, an increase of 167% in ten years; performance growth in line with expectations.
② Benefiting from the rapid increase of domestic shale gas and other mining speeds, the company’s order volume and price rose.
The company’s gross profit margin increased by 7.
Seven averages reached 34.
8%, net interest rate increased by 8.
Six averages reached 19.
8%, a new high since 2014.
The company added 34 new orders in the first half of the year.
70,000 yuan, an increase of 30 in ten years.
Among them, orders for drilling and completion equipment increased by more than 100%.
Fracturing demand has returned to the boom cycle, and the results of the financial report confirm that the volume and price of orders have risen.
PetroChina’s exploration spending plan goes beyond history to usher in China’s shale gas revolution.
① Energy security will become the main investment line of the oil and gas industry chain, and the correlation between oil prices and domestic exploration expansion will weaken. Shale gas is the main force.
PetroChina’s southern Sichuan region has formulated a mid-to-long-term development plan for four rounds of production capacity construction. It plans to drill 80北京夜网0 new holes in the three years after the 13th Five-Year Plan and reach 12 billion cubic meters in 2020.22 billion cubic meters will be produced in 2025; 1900 new ones will be gradually produced during the “Fifteenth Five-Year Plan” period; 32 billion cubic meters will be produced in 2030;The annual average of new wells is about 400, realizing long-term stable production.
② At present, the overall supply and demand of shale gas drilling and completion equipment, the company’s competitive advantage is outstanding, and it is welcoming China’s shale gas revolution.
Catalyst: Obtained large orders from customers at home and abroad.
Core risks: the risk of falling crude oil prices and the risk of exchange rate fluctuations.