Yantai Jereh Oilfield Services Group Co.Ltd(002353) (002353)
event
Jerry new energy, a wholly-owned subsidiary of the company, signed a joint venture agreement with Zhao Jinbao team of Jiageng innovation laboratory. All parties will invest in the establishment of a joint venture to jointly promote the research, production and marketing of pure silicon carbon products, pure silicon oxide products and silicon-based composite negative electrode materials. Jerry oil and gas signed a contract with Koc on the North Jurassic production facility phase 5 project, with a total amount of RMB 2.7 billion, accounting for about 32.55% of the company’s revenue in 2020.
Key investment points
The company and Jiageng laboratory team jointly established a silicon-based negative electrode material company to promote the layout and development of new energy field
The joint venture plans to invest and construct in two phases. The registered capital of the joint venture in phase I project is 60 million yuan, of which Jerry new energy invested 115 million yuan, holding 58%. Zhao Jinbao team of Jiageng innovation laboratory invested 83.28 million yuan in cash and intellectual property rights, holding 42%; The registered capital of the joint venture of phase II project was increased to 84 million yuan, and the investment of Jerry new energy was increased by 135 million yuan. The shareholding ratio was adjusted to 70%, and the shareholding ratio of Zhao Jinbao team of Jiageng innovation laboratory was adjusted to 30%.
This time, the company signed a joint venture agreement with Zhao Jinbao team of Jiageng innovation laboratory to establish a joint venture company, aiming to jointly commit to the market promotion, new technology iteration, factory construction and commercial market application of pure silicon carbon products, pure silicon oxide products and silicon-based composite negative electrodes in China and even around the world, so as to realize the market application of pure silicon carbon products The comprehensive industrialization and good economic benefits of pure silicon oxide and silicon-based composite negative electrode improve the energy density of lithium-ion batteries, promote the development of new energy vehicles, and help the country realize the “double carbon” plan.
This project will help promote the layout and development of the company in the new energy field, enhance the competitiveness of the company in the new energy field, especially in the negative electrode material market, grasp the broad opportunities of the future lithium battery market, and comply with the company’s long-term development strategy.
The company signed a major project contract of 2.7 billion yuan in Kuwait to boost performance growth and enhance its influence in overseas markets
Jerry oil & gas signed a project contract and memorandum of agreement with Kuwait oil company on the North Jurassic production facility phase 5 project, The total amount is US $426 million (about RMB 2.7 billion), accounting for about 32.55% of the company’s revenue in 2020. The project is located in the Jurassic gas field in northern Kuwait. It is a key strategic production project of Kuwait Petroleum Company from 2022 to 2023. It aims to quickly build oil, gas and water production facilities through skid mounted installation mode, meet the growing local demand for natural gas power generation and accelerate the development of local natural gas resources in Kuwait Development and utilization, and accelerate the transformation to a clean energy structure.
This cooperation with Koc is the first breakthrough of the company’s integrated solution for oil and gas field surface engineering in the Kuwaiti market. Koc is an international leading oil company. The implementation of the project will effectively enhance the company’s brand influence in the Middle East market and lay a solid foundation for the company to further expand its overseas market. If the project is successfully implemented, it is expected to have a positive impact on the company’s future business performance and consolidate the company’s influence and competitiveness in the field of oil and gas engineering.
Profit forecast and valuation
It is estimated that the company’s revenue from 2021 to 2023 will be RMB 8.5 billion, 9.8 billion and 11 billion, with a year-on-year increase of 3% / 15% / 12%; The net profit attributable to the parent company was RMB 1.71 billion, 1.96 billion and 2.22 billion, an increase of 1% / 15% / 13%; PE is 22 / 20 / 17 times, maintaining the “buy” rating.
Risk statement
Risk of sharp fluctuations in oil prices; Shale gas development is lower than expected; Covid-19 epidemic impact exceeded expectations
