Jerry Stock (002353) First Coverage Report: Good Steps and Thousands of Miles

Jerry Stock (002353) First Coverage Report: Good Steps and Thousands of Miles

The report reads that the capital expenditure budget for three barrels of oil has increased, the center of oil prices has continued to rise, and the company has entered a new round of profitability.

Investment Highlights Industry Drivers 1) At the end of 2018, the dependence of oil and gas on foreign countries reached 70.

83% and 43.

16%, increase by 2 each year.

42 tablets and 4.

73pct.

It is imperative to increase upstream exploration and development efforts to ensure national energy security.

At present, conventional oil and gas production is weak, and shale gas technology 都市夜网 recoverable reserves rank first in the world. It is imperative to increase shale gas exploration and development; 2) The total domestic capital expenditure budget for three barrels of oil in 2019 will increase by 21%, showing an accelerating trend;3) The oil price hub has been increasing since the end of early 2016, and overseas oil and gas capital has expanded.

Rystad Energy expects global oil and gas capital to grow at an annual rate of 6% in the medium to long term.

Company logic 1) We estimate that there will be more than 120 fracturing trucks in the domestic market each year from 19-20.

Because the fracturing truck’s three major procurement cycles are as long as 6?
In 9 months, the water supply and drainage of fracturing equipment were sought in the short term, with both volume and profit rising.

The 重庆耍耍网 company’s fracturing equipment revenue accounts for about 50% of the revenue from drilling and completion equipment. The drilling and completion equipment will become the main source of profit in 19 years. 2) Benefiting from the oil and gas reform, the three barrels of oil will be opened to private enterprises for upstream markets and overseas oil and gas capital expenditure will grow steadilyIn 2018, the company’s coal technology services achieved record high revenue and gross profit margin in 2018, and it is expected to contribute additional profits in the future.

The company’s competitive advantages 1) Leading domestic private oil equipment manufacturing industry, leading fracturing technology, and complete set of supporting capabilities.

Has developed the world’s first 3100 fracturing vehicle, the world’s largest power fracturing vehicle-Apollo 4500 turbine fracturing vehicle.

Currently, the market share of the fracturing vehicle stock market is 30% -40%, and the 2500 large-scale fracturing equipment accounts for a higher proportion.

In 2019, the company launched the first electric drive fracturing equipment, which can significantly reduce the development cost of shale gas and improve the efficiency of shale gas extraction.

2) The largest domestic coiled tubing service provider, fracturing and acidification service provider, the first company to provide large-scale integrated production increase services to Russia, and the first company to provide coiled tubing technical services to GCC (Gulf Cooperation Arab States) countries. Extremely cold and hot summer areas have the strongest supporting technology equipment.

Earnings forecast and forecast company 2019?
The net profit attributable to mothers will be 9 in 2021.

37, 12.

40, 15.

54 ppm, an increase of 52 in ten years.

28%, 32.

38% and 25.

31%, corresponding to PE of 21 times, 16 times, and 13 times in 2019/2020/2021; the average PE of industry comparable companies in 2019/2020 is 33 times and 22 times, respectively. The company’s revenue growth rate is fast, and the gross profit margin andThe net interest rate is the highest and deserves a higher return.

Give Buy rating.

Risks suggest that the oil price caused by the economic crisis or the growth of US shale oil exports will continue to fall; the actual capital expenditure of three barrels of oil is much smaller than the budget