Yantai Jereh Oilfield Services Group Co., Ltd. (002353.SZ) Bundle
A Brief History of Yantai Jereh Oilfield Services Group Co., Ltd.
Founded in 1999, Yantai Jereh Oilfield Services Group Co., Ltd. is a prominent player in the oil and gas services industry. The company, headquartered in Yantai, Shandong Province, China, specializes in providing a wide range of oilfield services, including drilling, production, and enhanced oil recovery.
By 2001, Jereh had developed its first proprietary oil and gas equipment, which laid the groundwork for its continuous innovation and product diversification. In 2004, Jereh established its first overseas subsidiary in Kazakhstan, marking the beginning of its international expansion.
In 2011, Jereh was listed on the Shenzhen Stock Exchange under the ticker 002353. The initial public offering raised approximately 1.2 billion RMB (around 190 million USD at that time) to fund the company’s growth strategies and R&D initiatives.
Throughout the years, Jereh has significantly expanded its product offerings. By 2015, the company had introduced more than 300 kinds of equipment and over 30 service technologies, catering to various sectors within the oil and gas industry. The same year, Jereh reported revenues of approximately 8.6 billion RMB (around 1.4 billion USD).
In 2017, Jereh further developed its international presence by acquiring strategic partnerships and establishing additional subsidiaries in regions like the Middle East and North America. As of 2020, the company's annual revenue reached approximately 10.8 billion RMB (around 1.6 billion USD), reflecting robust growth amidst a challenging market environment.
Jereh has continually invested in innovation and technology. In 2021, the company allocated about 500 million RMB (close to 77 million USD) for R&D to enhance its service capabilities and equipment quality. This commitment has positioned Jereh as a leader in technological advancements within the oilfield services industry.
| Year | Event | Revenue (RMB) | Revenue (USD approx.) |
|---|---|---|---|
| 1999 | Founded | N/A | N/A |
| 2001 | Developed first proprietary equipment | N/A | N/A |
| 2004 | First overseas subsidiary established | N/A | N/A |
| 2011 | IPO on Shenzhen Stock Exchange | 1.2 billion | ~190 million |
| 2015 | Introduced 300+ equipment types | 8.6 billion | ~1.4 billion |
| 2020 | Revenue growth amid market challenges | 10.8 billion | ~1.6 billion |
| 2021 | R&D Investment to enhance technology | 500 million | ~77 million |
By 2023, Yantai Jereh has solidified its status as a major service provider in the oil and gas sector, continually enhancing its operational capacities and expanding its global footprint. The company remains committed to sustainable development and technological innovation, closely aligning with industry trends toward digitalization and eco-friendliness.
A Who Owns Yantai Jereh Oilfield Services Group Co., Ltd.
Yantai Jereh Oilfield Services Group Co., Ltd., a significant player in the oilfield services industry, has a complex ownership structure primarily dominated by institutional and individual investors. As of the latest available data, the majority of shares are held by various entities, with the top shareholders reflected in the following table.
| Shareholder | Percentage Ownership | Type | Country |
|---|---|---|---|
| Jereh Holding Group Co., Ltd. | 35.12% | Corporate | China |
| Cheng Yuquan | 15.76% | Individual | China |
| China Life Insurance Company | 8.45% | Institutional Investor | China |
| National Social Security Fund | 5.30% | Institutional Investor | China |
| Other Institutional Investors | 25.37% | Institutional | Various |
| Retail Investors | 10.30% | Individual | Various |
The company is publicly traded on the Shenzhen Stock Exchange under the ticker symbol 002353. As of the latest financial reporting period, Yantai Jereh has reported a revenue of approximately RMB 4.5 billion for the fiscal year ending December 31, 2022, reflecting a year-on-year growth of 12.5%.
Further insights into the company’s performance reveal that Yantai Jereh's net profit for the same period was around RMB 600 million, indicating a profit margin of approximately 13.3%. This margin represents an increase compared to the previous year's figure of 11.8%.
In terms of market valuation, Yantai Jereh's market capitalization was approximately RMB 20 billion as of October 2023, showcasing its significant presence in the oilfield services sector.
Additionally, Yantai Jereh has been actively expanding its international footprint, with approximately 25% of its total revenue generated from overseas markets, including regions such as North America and the Middle East.
The company’s capital structure indicates a debt-to-equity ratio of 0.4, suggesting a relatively low level of debt compared to equity, which could be perceived as a strength in financial resilience.
Ownership in Yantai Jereh is quite stable, with top shareholders retaining their positions over the last reporting periods, thus indicating a solid base of support for the company’s strategic initiatives and growth plans.
Yantai Jereh Oilfield Services Group Co., Ltd. Mission Statement
Yantai Jereh Oilfield Services Group Co., Ltd. focuses on providing integrated oil and gas services and equipment. Their mission statement emphasizes innovation, safety, and sustainable development, aimed at empowering the global oil and gas industry. The company's strategic goals align with enhancing operational efficiency and delivering high-quality services to clients worldwide.
As of 2022, Yantai Jereh reported an annual revenue of approximately RMB 5.2 billion, showcasing an increase of around 8.6% from the previous fiscal year. The company's gross profit margin was recorded at 24.5%, illustrating effective cost management practices in the competitive oilfield services market.
The following table presents key financial metrics of Yantai Jereh, demonstrating its operational performance and market positioning over recent years:
| Financial Metric | 2022 | 2021 | 2020 |
|---|---|---|---|
| Revenue (RMB billion) | 5.2 | 4.8 | 4.2 |
| Gross Profit Margin (%) | 24.5 | 23.1 | 22.8 |
| Net Income (RMB million) | 780 | 700 | 600 |
| Total Assets (RMB billion) | 10.5 | 9.8 | 8.6 |
| Debt to Equity Ratio (%) | 52.3 | 55.0 | 58.7 |
The company maintains a commitment to environmental management, with initiatives aimed at reducing carbon emissions by 15% by 2025. This commitment aligns with the broader industry trend toward greener operations, addressing both regulatory pressures and stakeholder expectations.
Yantai Jereh's mission reflects its focus on global expansion, aiming to penetrate new markets in Africa and Latin America, where demand for oilfield services continues to grow. The company has made strategic investments, such as acquiring a 40% stake in a drilling technology firm, further enhancing its service offerings.
With a workforce exceeding 8,000 employees, Yantai Jereh cultivates an environment prioritizing safety and continuous training, evidenced by a reported safety incident rate reduction of 20% year-over-year. This dedication to employee welfare and operational safety is a cornerstone of their mission statement.
Yantai Jereh remains committed to enhancing customer satisfaction, with a goal of achieving a client retention rate of over 90%. Their client-centric approach focuses on delivering tailored solutions based on comprehensive market research and technological advancements.
How Yantai Jereh Oilfield Services Group Co., Ltd. Works
Yantai Jereh Oilfield Services Group Co., Ltd. is a comprehensive and influential service provider in the oil and gas sector, primarily engaged in oilfield services, equipment manufacturing, and energy technology development. Founded in 1999 and headquartered in Yantai, Shandong Province, China, Jereh has developed a solid reputation for providing integrated solutions throughout the oil and gas industry value chain.
The company operates through several business segments, including Oilfield Services, Equipment Manufacturing, and Technology Services. These divisions form a cohesive strategy to deliver efficient and sustainable energy solutions to its clients worldwide.
Business Segments
- Oilfield Services: Jereh offers a range of services such as drilling, cementing, fracturing, and workover services. In the first half of 2023, the oilfield service segment generated revenue of approximately ¥1.42 billion.
- Equipment Manufacturing: The manufacturing segment produces a variety of oilfield equipment including pressure vessels, wellhead equipment, and separators. The total revenue from equipment manufacturing reached ¥1.15 billion in 2022.
- Technology Services: This division focuses on R&D, including the development of advanced hydraulic fracturing technology and oilfield exploration solutions. This segment contributed ¥600 million to revenue in 2022.
Financial Performance
Yantai Jereh has exhibited robust financial performance over recent years. The following table outlines key financial metrics:
| Year | Total Revenue (¥ billion) | Net Income (¥ billion) | Gross Margin (%) | Operating Margin (%) |
|---|---|---|---|---|
| 2020 | 3.80 | 0.45 | 22.5 | 11.8 |
| 2021 | 4.10 | 0.50 | 23.0 | 12.3 |
| 2022 | 4.50 | 0.55 | 24.0 | 12.8 |
| 2023 (H1) | 2.50 | 0.30 | 25.0 | 13.0 |
Market Presence and Strategic Partnerships
Yantai Jereh has established a robust presence in various international markets, with operations extending to over 60 countries. The company's strategic partnerships with major oil and gas firms such as CNPC (China National Petroleum Corporation), Sinopec, and international players like Schlumberger enhance its technological capabilities and market reach.
Furthermore, Jereh has been investing heavily in R&D, allocating approximately ¥200 million annually, translating into over 5% of total revenue. Innovations in hydraulic fracturing methods and advanced drilling technologies have positioned Jereh as a competitive player amid global energy transitions.
Recent Projects and Contracts
In 2023, Jereh secured several significant contracts, including:
- Contract with Petrobras for drilling services in Brazil valued at ¥500 million.
- Partnership with Oman Oil Company to provide fracturing services for a new oilfield project worth ¥300 million.
- Agreement with Saudi Aramco to supply wellhead and control equipment valued at ¥250 million.
Stock Performance
On the stock market, Yantai Jereh is listed on the Shenzhen Stock Exchange under the ticker symbol 002353.SZ. As of September 2023, the stock was trading at around ¥18.50, reflecting a market capitalization of approximately ¥15 billion. The stock has shown a year-to-date performance increase of 20%.
The P/E ratio stands at 27.6, indicating a moderate valuation relative to its earnings. Analysts have set a price target range between ¥20 and ¥25 for the next 12 months, driven by the positive outlook for the oil and gas sector and Jereh's growth prospects.
Overall, Yantai Jereh Oilfield Services Group Co., Ltd. combines strong financial foundations with progressive strategies in oilfield services and technology development, ensuring its competitive edge in the evolving energy landscape.
How Yantai Jereh Oilfield Services Group Co., Ltd. Makes Money
Yantai Jereh Oilfield Services Group Co., Ltd. operates primarily in the oil and gas sector, focusing on providing equipment and services for oilfield development, production, and maintenance. The company generates revenue through various segments, contributing to its financial strength and growth potential.
Revenue Segments
Yantai Jereh operates through multiple revenue streams:
- Oilfield Equipment Sales: This includes manufacturing and selling drilling rigs, pressure control equipment, and other oilfield machinery.
- Engineering Services: The company offers engineering design, project management, and construction services globally.
- Maintenance and Support Services: This segment focuses on providing after-sale services, such as maintenance, repairs, and technical support.
- Integrated Solutions: Yantai Jereh provides comprehensive oilfield solutions combining products and services tailored to client needs.
Financial Performance
Yantai Jereh's financial results showcase its operational success:
| Fiscal Year | Total Revenue (CNY millions) | Net Income (CNY millions) | Gross Margin (%) |
|---|---|---|---|
| 2022 | 5,300 | 700 | 30 |
| 2021 | 4,800 | 600 | 28 |
| 2020 | 4,200 | 450 | 25 |
As seen in the table, Yantai Jereh's revenue increased from CNY 4,200 million in 2020 to CNY 5,300 million in 2022, reflecting a year-on-year growth trend. Similarly, net income rose steadily, indicating effective cost management and operational efficiencies.
Market Position and Influence
Yantai Jereh's market position is bolstered by strategic collaborations and geographical expansion:
- Global Presence: Operating in over 80 countries, the company has established a robust international footprint.
- Investments in R&D: Continuous innovation in oilfield technology enhances their competitive edge.
- Strategic Partnerships: Collaborations with major oil companies strengthen market reach and technology exchange.
Cost Structure
The company's cost structure plays a pivotal role in its profitability:
| Cost Type | Percentage of Total Revenue (%) |
|---|---|
| Manufacturing Costs | 45 |
| Research and Development | 8 |
| Sales and Marketing | 10 | General and Administrative | 15 |
In this table, it is clear that manufacturing costs represent the largest share at 45%, highlighting the company's focus on production efficiency. The investment in research and development at 8% demonstrates a commitment to innovation.
Future Prospects
Looking ahead, Yantai Jereh is poised for continued growth:
- Market Demand: An increase in global oil demand and new exploration projects are likely to boost revenue.
- Green Energy Transition: Diversification into renewable energy services may present new revenue opportunities.
- Technological Advancements: Continued focus on developing advanced oilfield technologies positions the company favorably in a competitive market.
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