Investment Rating - The report maintains a positive outlook on the power and natural gas sectors, indicating a favorable investment environment for renewable energy and gas companies [2][10]. Core Insights - The Shandong provincial government has introduced its first local guidelines for the marketization of renewable energy pricing, which is expected to stabilize returns for existing projects and provide a model for other provinces [5][7]. - Global natural gas prices have seen a slight rebound due to tightening supply and increased demand for LNG exports, with specific price movements noted in various regions [10][19]. - The report highlights the potential for LNG import prices to decrease further in the second half of 2025, benefiting downstream gas companies [11][29]. Summary by Sections 1. Power Sector: Shandong's New Energy Market Guidelines - Shandong's new energy pricing reform outlines that existing projects will participate in market pricing at a rate of 0.3949 yuan per kWh, aligning with the provincial coal benchmark price [5][6]. - The guidelines emphasize strong connectivity with existing policies, ensuring stability for existing projects while introducing competitive elements for new projects [6][7]. - The implementation of these guidelines is expected to serve as a model for other provinces, enhancing the operational efficiency and market strategies of renewable energy companies [7][8]. 2. Natural Gas: Global Demand and Price Rebound - As of May 9, 2025, the Henry Hub spot price in the U.S. was $3.22/mmBtu, reflecting a weekly increase of 3.84%, while European prices also saw a rise due to supply constraints and seasonal demand [10][19]. - The report notes that the overall LNG import cost in China has remained below 4000 yuan per ton, with a significant decrease of 18.4% from the year's peak [11][29]. - The anticipated decline in international oil prices is expected to further lower LNG import prices in China, benefiting city gas companies [11][29]. 3. Weekly Market Review - The public utilities, environmental protection, power equipment, and gas sectors outperformed the Shanghai and Shenzhen 300 index during the review period [35]. 4. Company and Industry Dynamics - Recent developments include the issuance of competitive configuration announcements for renewable energy projects in various provinces, indicating ongoing investment and growth in the sector [44][46]. - The report also highlights significant corporate announcements, including financing and profit distribution plans from key players in the energy sector, reflecting a proactive approach to capital management and shareholder returns [48][49].

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 187,046 million, an increase of 5.8% compared to RMB 177,354 million in 2023[24] - Profit attributable to shareholders for the year was RMB 5,960 million, up from RMB 5,682 million in 2023, reflecting a growth of 4.9%[24] - Core profit before income tax expense was RMB 13,259 million, compared to RMB 13,101 million in 2023, indicating a year-on-year increase of 1.2%[24] - EBITDA for the year was RMB 17,640 million, slightly down from RMB 17,675 million in 2023[24] - The company reported a profit before income tax expense of RMB 12,635 million, a marginal increase from RMB 12,593 million in the previous year[24] - Net profit margin for 2024 is 5.08%, a decrease of 0.14% from 2023[28] - Return on total assets (ROA) improved to 6.63% in 2024, up from 6.55% in 2023[28] - Earnings per share (Basic) increased to 68.83 RMB cents in 2024, compared to 65.62 RMB cents in 2023[28] - Other net gains for the year were approximately RMB 1,520 million, up from RMB 903 million in 2023, primarily due to integration of gas stations and reduced exchange losses[98] Sales and Operations - Total natural gas sales volume was 54,170 million cubic meters, contributing to revenue of RMB 152,090 million from the natural gas sales business[6] - The company added 849,900 new users, bringing the cumulative total to 16,453,800 users across the country[6] - Sales volume of city gas reached 421 million cubic meters in 2024, an increase of 8.8% from 387 million cubic meters in 2023[33] - Total sales volume of natural gas reached 542 million cubic meters in 2024, a 9.9% increase from 493 million cubic meters in 2023[33] - The total number of city gas users exceeded 16.45 million, with retail volume increasing by 8.1% year-on-year and sales totaling 54.17 billion cubic meters[55] - Retail gas volumes in the northwestern and southwestern regions increased by 12% and 19.2%, respectively[59] - The total refueling volume for LNG ship refueling-at-sea business was 110,000 tonnes for the year, representing a year-on-year increase of 470%[59] Assets and Liabilities - Non-current assets totaled RMB 86,153 million, while current assets were RMB 57,237 million as of December 31, 2024[24] - The company’s net assets increased to RMB 88,835 million, up from RMB 85,783 million in 2023[24] - Total assets as of December 31, 2024, were approximately RMB 143,390 million, a decrease of RMB 129 million or 0.1% from RMB 143,519 million as of December 31, 2023[115] - The Group had total borrowings of RMB 23,462 million as of December 31, 2024, with significant repayments due within one year increasing to RMB 9,133 million from RMB 5,464 million last year[123] Cost Management - Average finance cost decreased to 2.90% in 2024 from 3.33% in 2023, reflecting improved financing conditions[28] - Employee compensation costs for the year were approximately RMB 5,830 million, a decrease of 2.4% from RMB 5,970 million last year, with employee compensation accounting for 3.12% of operating revenue[102] - Depreciation, depletion, and amortization for the year were approximately RMB 5,160 million, representing an increase of 3.4% compared to RMB 4,992 million last year[103] - Other selling, general, and administrative expenses for the year were approximately RMB 3,491 million, a decrease of 4.5% from RMB 3,656 million last year, due to strict cost control measures[104] - Interest expenses for the year were approximately RMB 803 million, representing a decrease of 16.4% compared to RMB 960 million last year, attributed to a reduction in average financing costs to 2.9% from 3.3%[111] Strategic Initiatives - In 2025, the company aims to enhance marketing strategies and focus on green and low-carbon development to seize opportunities presented by the central government[76] - The company plans to increase the proportion of retail gas volume to 73% or above and aims to put 10 new projects into production[81] - The company will accelerate the transformation of the "Natural Gas+" intelligent integrated energy service model, focusing on low-carbon and zero-carbon initiatives[82] - The company aims to achieve a target of over 15% for low-carbon and zero-carbon stations in its operations[84] - The company continues to focus on five major strategies: innovation, green, market, capital, and low cost, to enhance operational efficiency and market competitiveness[86] Governance and Management - The Company has complied with all code provisions in Part 2 of the Corporate Governance Code during the year, except for the absence of certain independent non-executive directors at meetings[159] - The Board is collectively responsible for promoting the success of the Company by directing and supervising its affairs[165] - The day-to-day management and operation of the Company are delegated to the Chief Executive Officer and senior management, with periodic reviews of delegated functions[168] - The Company has established clear directions regarding the powers of management and the circumstances under which management must report back to the Board[174] - The Board has a necessary balance of skills and experience appropriate to the business requirements, ensuring effective independent judgment[176] Workforce and Diversity - The Group employed 24,809 employees globally as of December 31, 2024, a decrease from 27,138 employees in the previous year[132] - As of December 31, 2024, the total number of employees was 24,809, with male employees constituting 68.3% and female employees 31.7%[198] - The Board consists of six male Directors and one female Director, indicating a gender diversity ratio of approximately 14.3% female representation[189] - The Company has adopted a Board Diversity Policy to ensure a balanced representation of skills, experience, and gender among Board members[190] - The Company maintains a commitment to gender diversity in its workforce, opposing any form of discrimination[200]

Core Viewpoint - The company is expected to continue optimizing its product structure in 2024, with significant results from its new energy sector and an increase in revenue contribution from safety protection composite materials, highlighting economies of scale [1][2]. Financial Performance - In 2024, the company achieved a revenue of 1.057 billion yuan, a year-on-year increase of 14.04%, and a net profit attributable to shareholders of 217 million yuan, up 31.18% year-on-year [2][3]. - For Q1 2025, the company reported a revenue of 259 million yuan, an 18.00% increase year-on-year, while the net profit attributable to shareholders was 52 million yuan, a 22.69% increase year-on-year [2][3]. Profit Growth Drivers - The main reasons for the net profit growth in 2024 include: 1. Continuous optimization of product structure, leading to increased sales of high-value-added and innovative products, which improved overall sales prices and gross margins [3]. 2. Successful results from the new energy sector, with an increased revenue share from safety protection composite materials, showcasing economies of scale [3]. 3. High conversion rate of R&D investments, forming a diversified business matrix that enhances synergy and increases market share of core products [3]. 4. Significant cost reduction and efficiency improvement through supply chain management and lower procurement prices for key materials [3]. 5. Improved financial structure with reduced financial expenses and increased returns from cash management [3]. Product Performance - In 2024, revenue from high-temperature mica insulation materials was 727 million yuan, a year-on-year increase of 4.65%, with a gross margin of 38.17% [3]. - Revenue from new energy safety protection composite materials reached 220 million yuan, a substantial year-on-year increase of 81.41%, although the gross margin decreased to 33.38% [3]. - Revenue from fiberglass cloth was 106 million yuan, a slight year-on-year increase of 0.87%, with a gross margin of 23.43% [3].

Investment Rating - The report maintains an "Accumulate" rating for the gas industry [1] Core Views - Concerns over economic recession due to tariffs have led to a significant drop in US gas prices, while tariffs have temporarily halted the recovery of European gas prices, with domestic prices remaining stable [1][10] - The report highlights a supply-demand analysis indicating a 2.1% week-on-week increase in total gas supply in the US, while total demand increased by 7% week-on-week [15][17] - The report emphasizes the ongoing adjustments in pricing mechanisms and the gradual recovery of demand in the domestic market [50][51] Price Tracking - As of April 17, 2025, US HH gas prices decreased by 20.6%, European TTF prices increased by 6.8%, and domestic LNG prices remained stable with a week-on-week change of -0.5% [10][12] - The average total supply of natural gas in the US reached 1,124 billion cubic feet per day, with a year-on-year increase of 6.3% [15] Supply and Demand Analysis - The report notes that the US gas market is experiencing a week-on-week price drop of 20.6% due to tariff-induced inflation concerns, while total demand has increased by 7% [15][17] - In Europe, gas consumption for March 2025 was 60.5 billion cubic meters, reflecting a year-on-year increase of 1.8% [17] Pricing Progress - The report indicates that 61% of cities have implemented residential pricing adjustments, with an average increase of 0.20 yuan per cubic meter [39] - The pricing mechanism is expected to continue evolving, with potential for further adjustments in the future [39] Important Events - The report details the increase of tariffs on US LNG to 140%, noting that the impact on supply is limited due to the small proportion of US LNG in China's total imports [46] - Ongoing negotiations regarding the Russia-Ukraine conflict are highlighted as a significant factor influencing European gas supply dynamics [49] Investment Recommendations - The report recommends focusing on companies that can optimize costs and benefit from the evolving pricing mechanisms, particularly highlighting New Energy and China Gas as key players [50][51] - It suggests monitoring companies with strong long-term contracts and flexible scheduling capabilities, such as Jiufeng Energy and Xin'ao [51]

Investment Rating - The report assigns a "Buy" rating to the company, Kunlun Energy (135 HK), with a target price of HKD 9.02, indicating a potential upside of 15.1% from the current price of HKD 7.84 [1][14]. Core Insights - The company has set an ambitious retail gas growth target of 8% for 2025, supported by the addition of 8 city gas projects and an increase in commercial users [2][7]. - The financial outlook shows a slight decrease in core profit expectations for 2024, primarily due to lower-than-expected earnings from the LNG/upstream segment [7]. - The company maintains a healthy financial position with over RMB 20 billion in net cash by the end of 2024, and plans to increase the dividend payout ratio to 45% in 2025 [7][10]. Financial Overview - Revenue is projected to grow from RMB 177,354 million in 2023 to RMB 200,497 million in 2025, reflecting a compound annual growth rate (CAGR) of approximately 7.2% [3][15]. - Net profit is expected to increase from RMB 5,682 million in 2023 to RMB 6,948 million in 2025, with a corresponding EPS growth from RMB 0.71 to RMB 0.80 [3][15]. - The company’s price-to-earnings (P/E) ratio is forecasted to decrease from 10.3 in 2023 to 9.1 in 2025, indicating potential valuation upside [3][15]. Segment Performance - The natural gas sales segment is expected to generate revenue of RMB 152,090 million in 2024, with a slight decline in tax profit forecasted for this segment [9][11]. - The LNG processing and storage segment is projected to see a modest increase in revenue, while the exploration and production segment is expected to decline significantly [9][11]. - Overall, the company anticipates a tax profit growth of 16.4% in 2025, driven by improved performance in the natural gas and LNG segments [11][15]. Operational Metrics - The company’s gas sales volume is expected to rise from 30.3 billion cubic meters in 2023 to 35.5 billion cubic meters in 2025, reflecting an annual growth rate of 8.3% [10]. - The LNG plant processing volume is projected to increase from 2.83 billion cubic meters in 2023 to 3.80 billion cubic meters in 2025, with a utilization rate of 68.5% [10]. - The gross margin for gas sales is expected to stabilize at RMB 0.47 per cubic meter through 2025, despite potential discounts for commercial users [7][10].

Investment Rating - The report assigns a "Buy" rating to the company, Kunlun Energy (135 HK), with a target price of HKD 9.02, indicating a potential upside of 15.1% from the current closing price of HKD 7.84 [1][13]. Core Insights - The company aims for an aggressive retail gas growth target of 8% for 2025, supported by the addition of 8 city gas projects and an increase in commercial users [2][6]. - The financial outlook shows a slight decrease in core profit expectations for 2024, primarily due to lower-than-expected earnings from the LNG/upstream segment [6][7]. - The company maintains a healthy financial position with over RMB 20 billion in net cash by the end of 2024, and plans to increase the dividend payout ratio to 45% in 2025 [6][9]. Financial Overview - Revenue is projected to grow from RMB 177,354 million in 2023 to RMB 200,497 million in 2025, reflecting a compound annual growth rate (CAGR) of approximately 7.2% [3][14]. - Net profit is expected to increase from RMB 5,682 million in 2023 to RMB 6,948 million in 2025, with a corresponding EPS growth from RMB 0.71 to RMB 0.80 [3][14]. - The company’s P/E ratio is forecasted to decrease from 10.3 in 2023 to 9.1 in 2025, indicating potential valuation improvement [3][14]. Segment Analysis - Natural gas sales are expected to generate revenue of RMB 152,090 million in 2024, with a slight decline in profit margins due to increased competition [8][10]. - The LNG processing and storage segment is projected to see a modest increase in revenue, with processing volumes expected to rise by 7% year-on-year [6][9]. - The exploration and production segment is anticipated to face significant challenges, with a projected revenue drop of 81.2% in 2024 [8][10]. Operational Metrics - The company’s gas sales volume is expected to grow from 30.3 billion cubic meters in 2023 to 35.5 billion cubic meters in 2025, reflecting an annual growth rate of 8.3% [9][10]. - LNG terminal utilization is forecasted to remain stable at 88% in 2025, with processing capacity expected to increase [6][9]. - The gross margin for gas sales is projected to stabilize at RMB 0.47 per cubic meter through 2025, despite competitive pressures [6][9].

Investment Rating - The report maintains a "Buy" rating for Kunlun Energy (00135.HK) [1] Core Views - The company reported a revenue of 187.046 billion yuan for 2024, representing a year-on-year growth of 5.24%. The net profit attributable to shareholders was 5.96 billion yuan, up 4.89% year-on-year. The company declared a dividend of 0.3158 yuan per share, with a core profit payout ratio of 43% [7] - Retail gas volume continues to grow significantly, with a year-on-year increase of 8.1% in retail gas sales volume. The company is expanding its business layout into the central and western provinces of China [7] - The company expects a retail gas volume growth of 8% in 2025, with an anticipated addition of 600,000 to 700,000 new users [7] Financial Summary - Total revenue and net profit forecasts for 2025-2027 are adjusted to 61.47 billion yuan, 64.69 billion yuan, and 67.96 billion yuan respectively, with year-on-year growth rates of 3.14%, 5.24%, and 5.05% [7] - The company’s operating cash flow for 2024 was 12.585 billion yuan, with a free cash flow of 7.044 billion yuan, reflecting a decrease of 19.73 billion yuan year-on-year due to increased capital expenditures [7][8] - The company’s capital expenditures for 2024 increased by 12.54 billion yuan to 6.602 billion yuan, primarily for natural gas sales and LNG receiving stations [7]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a total revenue of 187.046 billion yuan for 2024, representing a year-on-year growth of 5.24%. The net profit attributable to shareholders was 5.96 billion yuan, an increase of 4.89% year-on-year. The company declared a dividend of 0.3158 yuan per share, with a core profit payout ratio of 43% [7] - Retail gas volume continues to grow significantly, with retail gas volume increasing by 8.1% year-on-year to 32.8 billion cubic meters. The company expects an 8% growth in retail gas volume for 2025, with an addition of 600,000 to 700,000 new users [7] - The company has a solid cash flow position, with operating cash flow of 12.585 billion yuan and free cash flow of 7.044 billion yuan in 2024. The dividend payout ratio is expected to increase to 45% in 2025, corresponding to a dividend yield of 4.2% [7] Financial Summary - Total revenue forecast for 2024 is 187.046 billion yuan, with a projected growth rate of 5.24% for the following years [8] - The net profit attributable to shareholders is expected to reach 6.147 billion yuan in 2025, with a year-on-year growth of 3.14% [8] - The company’s earnings per share (EPS) is projected to be 0.71 yuan in 2025, with a price-to-earnings (P/E) ratio of 10.16 [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company is expected to achieve a natural gas sales volume of 54.17 billion cubic meters in 2024, representing a year-on-year growth of 9.9%, with retail gas volume increasing by 8.1% [2][6]. - The company’s revenue for 2024 is projected to be 187.046 billion yuan, a year-on-year increase of 5.46%, with net profit attributable to shareholders reaching 5.960 billion yuan, up 4.89% [6]. - The company emphasizes shareholder returns, with a planned annual dividend of 0.3158 yuan per share, resulting in a payout ratio of 43% and a dividend yield of 4.18% based on the closing price on the report date [2][6]. Summary by Sections Sales Performance - The company’s industrial gas volume is expected to account for 74.9% of total sales in 2024, an increase of 5.5 percentage points year-on-year, with industrial gas volume rising by 16.5% [2][6]. - Retail gas volume in the northwest and southwest regions is projected to grow by 12% and 19.2% respectively, significantly outpacing the national average growth rate of 8% [6]. Financial Performance - The company’s LNG processing and storage business revenue is expected to grow by 1.6%, while the tax profit remains stable with a slight increase of 0.2% [6]. - The average load rate of LNG receiving stations is projected to be 87.6%, a decrease of 3 percentage points year-on-year, while LNG processing volume is expected to increase by 25.6% [6]. Dividend Policy - The company has announced a three-year dividend plan aiming for a payout ratio of 45% of net profit by the end of the fiscal year 2025 [6]. - The company has initiated interim dividends for the first time, with a payout of 0.1641 yuan per share for the interim and 0.1517 yuan per share for the final dividend [6].

Group 1: Agriculture and Livestock Industry - The probability of capacity reduction in the pig farming industry is high, with recovery difficulties greater than in previous cycles, indicating that the pig cycle is likely to return to normal gradually [2] - The overall output of large-scale pig enterprises is expected to increase year-on-year in 2025, while the industry may re-enter a loss state due to strong supply and weak demand for pig prices [2] - The pig farming sector is currently undervalued, with significant upside potential in stock valuations as many stocks are at historical low valuation ranges [2] Group 2: Light Textile Industry - The company, Shifeng Culture, is expected to turn a profit in 2024, with its toy business accounting for over 90% of revenue from 2018 to 2023 [3] - The integration of AI and IP in product development is leading the industry trend, with successful launches of AI toys that meet various functional needs [3] - The company plans to expand its market presence through diversified strategies and aims to enter overseas markets, projecting significant growth in net profit from 0.1 billion to 1.0 billion from 2024 to 2026 [3] Group 3: Healthcare Industry - The company, Weijian Medical, is actively responding to a crisis by enhancing its internal controls and implementing a traceability project for its sanitary products [5] - The brand, Nais Princess, has gained market recognition and improved rankings on e-commerce platforms due to its product quality and clean production environment [5] - The company aims to enhance product quality and innovation in its core product lines, focusing on consumer trust and product storytelling [5][27] Group 4: Human Resources Industry - Beijing Renli is embracing AI technology to drive digital transformation in the human resources sector, establishing a joint venture to focus on AI applications [9][30] - The company is developing a dual technology path to enhance operational efficiency and risk management through AI integration [30] - Profit forecasts for 2024-2026 have been adjusted downward, with expected net profits of 8.3 billion, 9.5 billion, and 10.4 billion respectively [9][32] Group 5: Energy Industry - Kunlun Energy reported a revenue of 1870.46 billion RMB in 2024, reflecting a year-on-year increase of 5.5% [33] - The company achieved a natural gas sales volume of 541.70 billion cubic meters, up 9.9% year-on-year, outperforming industry growth [33] - The LNG plant's operational efficiency has improved, with 13 plants achieving profitability, indicating a positive trend in the energy sector [35]