Jerry Shares (002353): Interim Report Exceeds Expectations to Meet Chinese Shale Gas Revolution

Guide to this report: The company’s mid-term performance forecast exceeds market expectations.

PetroChina’s exploration spending plan goes beyond history to usher in China’s shale gas revolution.

The company’s market share is expected to rise, equipment orders and prices are rising, and profits are expected to exceed historical highs.

Investment Highlights: Conclusion: The company’s interim report performance forecast exceeded market expectations.

Considering the strong demand for shale gas fracturing, the EPS for 2019-21 is raised to 1, respectively.

25 (+0.

22), 1.

64 (+0.

29), 1.

96 (+0.

32) yuan and maintain target price of 32.

02 yuan, overweight.

The company’s mid-term results forecast exceeded market expectations, and equipment orders and prices rose.

① The company’s 2019 interim report performance forecast is attributed to the parent’s net profit range4.

65-5.

21 ppm, a year-on-year growth of 150% -180%; performance growth exceeded market expectations.

② Benefiting from the rapid increase of domestic shale gas and other mining speeds, the company’s order volume and price rose.

PetroChina’s fracturing equipment bidding 南京夜网 is expected to double in 2019, the company’s market share will continue to increase gradually, and profits are expected to exceed historical highs.

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.

PetroChina’s exploration expansion plan for 2019 is 2,822 trillion, exceeding the exploration expansion during the period of high oil prices in 2012-2014.

② Shale gas is the main power point, and the demand for fracturing equipment is back to the boom cycle.

PetroChina’s southern Sichuan region has formulated a mid-to-long-term development plan for four rounds of production capacity construction. It 无锡桑拿网 plans to drill 800 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.

③ At present, the overall supply and demand of shale gas drilling and completion equipment, the company’s competitive advantage is outstanding, and China’s shale gas revolution is being welcomed.

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.