Breaking Down Yantai Jereh Oilfield Services Group Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven look at Yantai Jereh Oilfield Services Group (002353.SZ): Q3 2025 revenue hit ¥3.52 billion (up 13.9% YoY) with TTM revenue of ¥15.73 billion (19.13% growth), a market cap of ¥72.81 billion and a P/S of 4.63; Q3 net profit attributable to shareholders was ¥566.81 million (up 11.11% YoY) supporting a trailing net profit margin near 18% and ROE around 8%, while EPS stood at ¥0.56 (basic) and ¥1.78 (diluted); balance sheet figures include total assets of ¥38.08 billion, shareholders' equity of ¥22.15 billion, a debt-to-equity ratio of ~0.5, cash and equivalents of ¥8.25 billion, a current ratio ≈1.5 and quick ratio ≈1.2, plus operating cash flow of ¥2.93 billion in Q3 (up 99.45% YoY) and TTM operating cash flow of ¥2.84 billion; valuation metrics show a P/E of ≈12 and EV/EBITDA of 6, analysts' consensus target is ¥41.00, and notable corporate actions and growth catalysts include a July 2025 EPC contract in Algeria worth $850 million (~¥6.13 billion) and a share repurchase authorization of up to ¥250 million (repurchase price adjusted to ¥48.31/share), with workforce and productivity indicators like 7,116 employees and revenue per employee ~¥2.21 million-read on to unpack what these figures mean for investors, risk exposure (commodity cycles, geopolitics, regulatory and FX risks) and the company's strategic growth runway.

Yantai Jereh Oilfield Services Group Co., Ltd. (002353.SZ) - Revenue Analysis

• Q3 2025 revenue: ¥3.52 billion (YoY +13.9%).
• TTM revenue as of 2025-09-30: ¥15.73 billion (TTM YoY +19.13%).
• Full-year 2024 revenue: ¥13.35 billion (2024 YoY -4.00%).
• Revenue per employee: ≈ ¥2.21 million (7,116 employees).
• Market capitalization: ¥72.81 billion; Price-to-Sales (P/S): 4.63.

• Recent recovery: Q3 2025 and TTM growth indicate a rebound from 2024's slight revenue contraction, driven by improved service demand and execution across core oilfield segments.
• Valuation context: P/S of 4.63 implies the market prices the company at a premium to revenue-investors should compare with peers in oilfield services for relative fairness.
• Operational efficiency: ¥2.21 million revenue per employee provides a productivity benchmark for labor-intensive service operations; monitor trend versus peers and historical levels.

Yantai Jereh Oilfield Services Group Co., Ltd. (002353.SZ) - Profitability Metrics

Key profitability indicators for Yantai Jereh demonstrate steady earnings growth, improving margins, and reasonable capital efficiency. Recent quarterly and trailing figures show the company converting revenue into profit effectively while managing rising operating costs.

• Q3 2025 net profit attributable to shareholders: ¥566.81 million (up 11.11% YoY).
• Trailing twelve months (TTM) net profit margin: ~18%.
• Basic EPS (Q3 2025): ¥0.56; Diluted EPS (Q3 2025): ¥1.78.
• TTM Return on Equity (ROE): ~8%.
• Operating costs Y/Y increase: 36.30%; Revenue Y/Y increase: 29.49% - gross profit margin improved as revenue growth outpaced cost increases.
• Five-year average annual profit growth: 13.9%.

For deeper context on shareholders, ownership trends, and investor behavior related to Yantai Jereh, see: Exploring Yantai Jereh Oilfield Services Group Co., Ltd. Investor Profile: Who's Buying and Why?

Yantai Jereh Oilfield Services Group Co., Ltd. (002353.SZ) - Debt vs. Equity Structure

• Total assets: ¥38.08 billion (up 6.68% vs. prior year-end)
• Shareholders' equity: ¥22.15 billion (up 4.69% vs. prior year-end)
• Debt-to-equity ratio: ~0.5 (indicating roughly one yuan of debt per two yuan of equity)

• Conservative debt management: maintained moderate leverage (D/E ~0.5) to preserve financial flexibility and creditworthiness.
• Liquidity and capital allocation: equity cushion of ¥22.15 billion supports operational needs and buyback financing without aggressive borrowing.
• Shareholder return signal: the ¥250 million buyback program (price set at ¥48.31/share from May 23, 2025) demonstrates management confidence in intrinsic value and balance-sheet strength.

Yantai Jereh Oilfield Services Group Co., Ltd. (002353.SZ) - Liquidity and Solvency

Key liquidity and solvency metrics for Yantai Jereh Oilfield Services Group Co., Ltd. (002353.SZ) show a company with solid short-term coverage and improving cash generation entering the latter half of 2025. Relevant figures and trends are summarized below.

• Cash and cash equivalents (Sept 30, 2025): ¥8.25 billion - +25.52% vs. prior year-end.
• Current ratio: ~1.5 - adequate ability to cover current liabilities.
• Quick ratio: ~1.2 - sufficient liquid assets for immediate obligations.
• Operating cash flow (Q3 2025): ¥2.93 billion - +99.45% YoY, signaling stronger cash generation from operations.
• Net cash flow from operating activities (TTM): ¥2.84 billion - robust operational cash conversion over the trailing twelve months.
• Free cash flow: consistently positive historically, supporting reinvestment and growth initiatives.

For broader context on company strategy, history and ownership, see: Yantai Jereh Oilfield Services Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Yantai Jereh Oilfield Services Group Co., Ltd. (002353.SZ) - Valuation Analysis

• Price-to-Earnings (P/E): ~12 - suggests reasonable valuation relative to reported earnings.
• EV/EBITDA: ~6 - indicates moderate valuation on an operating cash‑flow basis.
• Market Capitalization: ¥72.81 billion.
• TTM Revenue: ¥15.73 billion - implying a P/S ratio of 4.63.
• Analyst Consensus Price Target: ¥41.00 - signaling upside potential versus current market price.
• Valuation Stability: Metrics have remained relatively stable over the past 12 months despite broader market fluctuations.

• Relative Positioning: These valuation metrics align with industry averages for oilfield services, reflecting investor confidence in the firm's operating model and earnings visibility.
• Investor Implication: A P/E around 12 and EV/EBITDA of 6 typically attract value‑oriented investors seeking exposure to oilfield services with reasonable downside protection.
• Monitor: Revenue and EBITDA trends, capex guidance, and contract backlog to assess whether current multiples remain justified.

Yantai Jereh Oilfield Services Group Co., Ltd. (002353.SZ) - Risk Factors

• Market price sensitivity: Yantai Jereh's top-line and utilization of drilling and oilfield services fleets are highly correlated with global oil and gas prices. Historical sensitivity analysis suggests a prolonged 30% decline in oil prices could reduce company revenue by an estimated 15-25% and compress EBITDA margins by 6-12 percentage points, depending on contract mix and fixed-cost absorption.
• Geopolitical and market-access risks: The company derives meaningful revenue from Middle East, Africa, Southeast Asia and CIS markets. Geopolitical tensions, sanctions, or restrictions in any of these regions can delay project starts, trigger contract terminations, or require costly re-routing of personnel and equipment.
• Regulatory and energy-transition headwinds: Stricter environmental and safety regulations in key jurisdictions (e.g., China, EU, North America) could increase compliance costs, require capital expenditures to retrofit equipment, or reduce demand for traditional oilfield services as customers shift to lower-carbon alternatives.
• Currency exchange volatility: A sizable share of Jereh's contracts are denominated in USD or other foreign currencies while costs may be in RMB or local currencies. Sharp FX moves (e.g., a 10-15% RMB depreciation or appreciation) can materially impact reported revenues, margins on overseas contracts, and translated net income.
• Competitive pressures: Domestic competitors and large international oilfield service firms compete on price, integrated solutions, and technology. Price competition can force margin concessions, particularly on large modular-equipment or long-term service contracts.
• Operational execution and supply-chain exposures: Project delays, supply-chain bottlenecks for critical components (e.g., pumps, compressors, control systems), or labour disruptions can inflate project costs and reduce realized margin on fixed-price contracts.

• Credit and liquidity considerations: Contract-backed receivables and inventory financing are common in the industry. A slowdown in new orders or lengthening receivable days could stress working capital and increase short-term borrowing needs; sensitivity testing should examine scenarios where days receivable increase by 20-40%.
• Technology and obsolescence risk: Advances in drilling automation, digital monitoring, and low-carbon technologies may erode market value of legacy equipment. Capital expenditure to upgrade fleets or develop new service lines could be required to retain market share.
• Counterparty concentration and contract terms: Large single contracts or customers can create concentration risk. Deterioration in a major client's credit profile or renegotiation of long-term contracts can lead to revenue volatility and margin erosion.

• Mitigants investors should assess:
• Geographic and customer diversification metrics (percent revenue by region/customer),
• Hedging policies for FX and commodity exposure,
• Contract mix (day-rate vs. lump-sum vs. equipment sales),
• Liquidity runway (cash + undrawn facilities / short-term debt),
• R&D and capex plans for technology upgrades and emissions compliance.

Yantai Jereh Oilfield Services Group Co., Ltd. (002353.SZ) - Growth Opportunities

• Immediate revenue lift: $850M contract adds significant backlog and reduces revenue cyclicality.
• Geographic diversification: expanding footprint in North Africa lowers single‑market exposure.
• Pipeline effect: large EPC wins increase probability of follow‑on aftermarket, O&M and long‑term service revenue.

• R&D investment: targeted spending on compression, gas treatment and modular EPC reduces unit costs and creates differentiated product lines.
• Strategic partnerships/joint ventures: alliances for local execution and technology transfer accelerate market entry and reduce project execution risk.
• Energy transition offerings: development of lower‑carbon gas solutions and electrified/compressed gas systems aligns with global decarbonization demand.
• Digital transformation: Industry 4.0 adoption (remote monitoring, predictive maintenance, digital twinning) improves margins on service contracts.

• Emerging markets expansion: prioritizing regions with rising gas demand (North Africa, MENA, SE Asia) can drive multi‑year serviceable addressable market growth.
• Monetization of aftermarket & services: converting EPC clients into long‑term service customers increases lifetime value and recurring revenue share.
• Capital allocation: selective M&A or JVs to acquire local engineering, procurement, or digital capabilities accelerates scale and shortens learning curves.