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Shares of Jereh Oilfield Services Group saw a significant increase following the announcement that the Chinese company had secured a $341 million order for gas turbine generators destined for data centers in the United States. The stock closed 3.2% higher at CNY96.80 (approximately $14), after reaching an intraday surge of up to 6.8%. Meanwhile, the broader Shenzhen market declined by 1.8% amid geopolitical tensions related to the Iran conflict. Since the end of last year, the company’s stock has risen by 37%.
The company’s subsidiary, GenSystems Power Solutions, will deliver the gas turbine generators to the U.S. customer by the end of 2027. This deal accounts for roughly 18% of the company’s projected revenue for the 2024 fiscal year, implying a positive influence on future profits. The announcement indicates that this is the second contract with the same client since February, when they agreed on a $182 million deal scheduled for delivery within 30 months.
These generators will power data centers, and their modular, standardized design allows for quick transport, on-site assembly, and flexible expansion. This approach effectively addresses challenges related to tight project timelines and limited installation space.
The new contract not only cements a strong partnership between the company and the client in the power equipment sector but also enhances the company’s market competitiveness and boosts its international brand presence. Moreover, this marks the fifth order for gas turbine generator sets received from U.S. clients since November, driven by rising demand for computing and energy services linked to artificial intelligence development.
Alongside these recent deals, the company also secured two contracts totaling $212 million with a U.S. AI technology giant in late November and early December, as well as an additional order exceeding $100 million with another U.S. buyer in January.
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