As per an Orient Securities research report, Jereh's Q2 2026 performance experienced a downturn owing to transient factors. However, with the mitigation of these factors, a gradual rebound in profitability is anticipated in the subsequent periods. Notably, the company is witnessing a swift expansion in orders within the power and data center sectors, a trend poised to fuel earnings growth over the forthcoming two years. Consequently, the research report has adjusted its earnings projections, lowering the estimate for 2026 while raising it for 2027. It forecasts the net profit attributable to shareholders for the years 2026 through 2028 to be RMB 3.70 billion, RMB 8.02 billion, and RMB 10.32 billion, respectively. Applying a 22x PE valuation for 2027, the corresponding target price is set at RMB 172.5, with the 'Buy' rating retained.
