Investment Rating - The report maintains an "Accumulate" rating for Hangzhou Oxygen Plant Co., Ltd. (002430) with a target price of 26.88 CNY, down from the previous forecast of 34.25 CNY [2][12]. Core Insights - The company's 2024 performance meets expectations, with steady development in pipeline gas and a potential recovery in retail gas prices. Additionally, the proportion of overseas orders for equipment continues to rise, indicating a steady growth outlook [3][12]. Financial Summary - **Revenue**: The company reported a revenue of 13,716 million CNY for 2024, reflecting a year-on-year increase of 3.06%. The projected revenues for the following years are 15,763 million CNY in 2025, 17,753 million CNY in 2026, and 20,025 million CNY in 2027, with growth rates of 14.9%, 12.6%, and 12.8% respectively [5][14]. - **Net Profit**: The net profit attributable to shareholders for 2024 is 922 million CNY, a decrease of 24.15% year-on-year. The forecasted net profits for 2025, 2026, and 2027 are 1,106 million CNY, 1,301 million CNY, and 1,510 million CNY, showing a recovery trend [5][14]. - **Earnings Per Share (EPS)**: The EPS for 2024 is projected at 0.94 CNY, with estimates of 1.12 CNY for 2025, 1.32 CNY for 2026, and 1.53 CNY for 2027 [5][14]. - **Return on Equity (ROE)**: The ROE is expected to be 10.0% in 2024, with a gradual increase to 13.6% by 2027 [5][14]. Market Performance - The stock has a 52-week price range of 16.67 CNY to 31.18 CNY, with a total market capitalization of 20,948 million CNY [6][12]. - The stock's performance over the last 12 months shows a decline of 23% relative to the Shenzhen Composite Index [10]. Business Development - The company’s gas sales revenue for 2024 is 8,100 million CNY, down 1.15% year-on-year, primarily due to fluctuations in retail gas prices. The gross margin for gas sales is 16.17%, a decrease of 2.58 percentage points year-on-year [12]. - The pipeline gas business is expected to provide stable cash flow, with new projects adding approximately 650,000 Nm³/h of oxygen production capacity in 2024 [12]. - The company achieved a revenue of 4,525 million CNY from air separation equipment in 2024, marking a year-on-year increase of 6.77% [12]. Overseas Market Expansion - The company’s order intake for air separation and petrochemical equipment reached 5,512 million CNY in 2024, with overseas orders accounting for 17%, up from 14% in 2023. This growth in overseas orders is anticipated to enhance equipment gross margins [12].

Investment Rating - The report maintains a "Strong Buy" rating for Hangzhou Oxygen Plant Co., Ltd. [2][7] Core Views - The company is experiencing slight revenue growth in 2024, but profits are declining, and cash flow is under pressure. Despite the ongoing industry downturn, the company is expanding its operations, with a 44% year-on-year increase in new gas project contracts, enhancing future profit potential [6][7]. - The gas sales segment is under pressure, with revenue and gross margins declining, while the air separation equipment segment shows revenue growth despite a slight decrease in gross margin [6][7]. - The report anticipates revenue growth for the company, projecting revenues of 167.8 billion, 190.9 billion, and 209.8 billion yuan for 2025, 2026, and 2027, respectively, with net profits expected to be 11.0 billion, 13.6 billion, and 14.6 billion yuan for the same years [6][8]. Financial Performance Summary - In 2024, the company achieved operating revenue of 137.16 billion yuan, a year-on-year increase of 3.06%, while net profit attributable to shareholders was 9.22 billion yuan, a decline of 24.15% [6]. - The gas sales business generated revenue of 81.00 billion yuan, down 1.15% year-on-year, while the air separation equipment business saw revenue of 45.25 billion yuan, up 6.77% [6]. - The company’s gross margin for 2024 was 20.85%, down 2.06 percentage points year-on-year, and the net margin was 7.23%, down 2.35 percentage points [6][15]. Business Segment Analysis - The air separation equipment segment signed contracts for 22 large and medium-sized units, with a total order value of 55.12 billion yuan, a decrease of 14.8% year-on-year. However, overseas orders increased, accounting for 17% of total orders [6][7]. - The company signed six new gas projects in 2024, with an oxygen production capacity of 650,000 cubic meters, representing a 44.4% increase year-on-year [6][7]. Market Conditions - The report indicates that terminal gas prices are stabilizing, with liquid oxygen prices showing a slight increase. As of late March, the average price of liquid oxygen was 429 yuan per ton, up 0.47% year-on-year [6][7].

Group 1 - 2024 performance shows a revenue of 13.7 billion, a year-on-year increase of 3%, but a net profit of 0.92 billion, down 24% year-on-year, with a gross margin of 20.9% and a net margin of 7.2% [1] - In Q4 2024, revenue was 3.36 billion, a year-on-year decline of 4.7%, and net profit was 0.25 billion, down 32.3% year-on-year, with a gross margin of 22.2% [1] - The equipment business saw new orders of 5.51 billion, a year-on-year decline of 14.8%, with foreign trade orders at 0.93 billion, accounting for nearly 17% [1] - The gas business added new projects with a total oxygen production capacity of approximately 650,000 Nm3/h, with liquid sales of 2.82 million tons, an 18% year-on-year increase [1] Group 2 - The industrial gas market demand is nearly 200 billion, with the third-party outsourcing market expected to grow, increasing from 41% in 2021 to 45% by 2025 [2] - In 2021, the company held a 9% share in the third-party gas supply market, with an expected future share of 30-40% [2] - The company is upgrading its product structure, with gas business revenue share increasing and retail gas business profitability higher than pipeline gas [2] Group 3 - Forecasted net profits for 2025-2027 are 1.07 billion, 1.30 billion, and 1.51 billion, with year-on-year growth rates of 16%, 22%, and 17%, corresponding to PE ratios of 20, 16, and 14 [3]

Core Viewpoint - The company reported a revenue of 13.716 billion yuan for 2024, a year-on-year increase of 3.06%, but the net profit attributable to shareholders was 922 million yuan, a year-on-year decrease of 24.15% [1] Financial Performance - In Q4 2024, the company achieved a revenue of 3.364 billion yuan, with a year-on-year and quarter-on-quarter decrease of 4.68% and 7.21% respectively [1] - The gross profit margin for the entire year was 20.85%, down 2.06 percentage points year-on-year, primarily due to the low prices in the industrial gas and liquid markets [1] - The company maintained good control over operating expenses, with a total expense ratio of 11.06%, down 0.52 percentage points year-on-year [1] Cash Flow and Contracts - As of Q4 2024, the company's inventory was 2.321 billion yuan, and contract liabilities were 3.176 billion yuan, reflecting a 13.78% increase from the previous quarter [2] - The net cash flow from operating activities for Q4 2024 was 1.435 billion yuan, showing a significant improvement with a 628% increase quarter-on-quarter [2] New Business Development - The company has made significant progress in emerging fields, with sales of electronic-grade hydrogen and helium increasing by 88.31% and 92.87% year-on-year respectively [3] - The traditional business remains resilient, with a record high contract amount of 841 million yuan for petrochemical equipment in 2024 [3] Profit Forecast and Valuation - The company has revised down its net profit forecasts for 2025 and 2026 by 4.28% and 6.31% to 1.283 billion yuan and 1.508 billion yuan respectively [4] - The target price has been raised to 31.20 yuan, corresponding to a PE ratio of 24 times for 2025 [4]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 31.20 [8][9]. Core Views - The company reported a revenue of RMB 13.716 billion for 2024, a year-on-year increase of 3.06%, while the net profit attributable to shareholders was RMB 922 million, a decrease of 24.15% year-on-year. The fourth quarter revenue was RMB 3.364 billion, down 4.68% year-on-year and 7.21% quarter-on-quarter [1]. - The company has a robust order backlog and has signed six new gas investment projects in 2024, with a total oxygen production capacity of approximately 650,000 Nm³/h. The cumulative order amount for air separation petrochemical equipment reached RMB 5.512 billion [3]. - The company has made significant progress in emerging fields, with sales of electronic-grade hydrogen and helium increasing by 88.31% and 92.87% year-on-year, respectively. The traditional business remains resilient, with a record high contract amount for petrochemical equipment in 2024 at RMB 841 million [4]. Summary by Sections Financial Performance - The company's gross profit margin for 2024 was 20.85%, a decrease of 2.06 percentage points year-on-year, primarily due to the low prices in the industrial gas and liquid markets. The total expense ratio was 11.06%, down 0.52 percentage points year-on-year, indicating good control over expenses [2]. - The net cash flow from operating activities in Q4 2024 was RMB 1.435 billion, showing a significant improvement of 628% quarter-on-quarter, mainly due to customer payments [3]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025 and 2026 has been adjusted downwards by 4.28% and 6.31% to RMB 1.283 billion and RMB 1.508 billion, respectively. The estimated net profit for 2027 is RMB 1.752 billion, with corresponding EPS of RMB 1.30, RMB 1.53, and RMB 1.78 for 2025, 2026, and 2027 [5].

Summary of the Conference Call for Hangzhou Oxygen Plant Co., Ltd. (杭氧股份) Company Overview - **Company**: Hangzhou Oxygen Plant Co., Ltd. (杭氧股份) - **Industry**: Gas and Equipment Manufacturing Key Financial Performance - **2024 Revenue**: CNY 13.716 billion, up 3.6% year-on-year [3] - **Net Profit**: CNY 922 million, down 24% year-on-year [4] - **Equipment Business Revenue**: CNY 5.06 billion, up 7% year-on-year [4] - **Gas Business Revenue**: CNY 8 billion, down CNY 1 billion year-on-year [3] - **Gross Margin**: - Equipment Manufacturing: 27.7%, down 2.14 percentage points [4] - Gas Business: 16.17%, down 5.22 percentage points [4] - **R&D Investment**: CNY 449 million, stable year-on-year [3] - **Operating Cash Flow**: CNY 2.246 billion, down 88.82% year-on-year [3] - **Total Assets**: CNY 24.07 billion [3] - **Total Liabilities**: CNY 13.68 billion [3] - **Debt Ratio**: 56.84% [3] Business Segment Performance - **Manufacturing Segment**: 36.92% of total revenue [5] - **Gas Segment**: 59.05% of total revenue [5] - **Liquid Sales Volume**: 2.82 million tons, including 2.44 million tons of oxygen, nitrogen, and argon [7] Project Investments and Future Outlook - **New Pipeline Gas Projects**: Investment of CNY 2.1 billion for 310,000 cubic meters [6] - **New Equipment Contracts**: CNY 5.512 billion, with air separation contracts accounting for CNY 4.6 billion [8] - **Expected New Projects in 2025**: Approximately 500,000 cubic meters of gas, mainly in the second half of the year [9] - **Focus on Semiconductor Projects**: Ongoing arrangements for new semiconductor projects [10] Dividend and Debt Management - **Dividend Policy**: Future dividends will consider financial safety, aiming to keep the debt ratio below 46% [11][12] Market Dynamics - **Liquid Gas Prices**: Significant price drops observed, with liquid oxygen, nitrogen, and argon prices decreasing by three digits [4][7] - **Import Volume**: 2024 import volume fell short of expectations; a joint venture was established to increase helium supply [13] - **Retail Gas Direct Sales Target**: Aiming for 70%-80% direct sales ratio [22] Competitive Landscape - **Overseas Orders**: Mainly from India, Mexico, Middle East, and Africa, with a focus on steel and chemical industries [23] - **Market Position**: Company maintains a competitive edge through technology and cost advantages [36] Challenges and Risks - **Profitability Concerns**: Declining margins in the gas business due to market conditions and increased competition [27] - **Economic Impact**: Future gas prices and demand are closely tied to economic recovery [39] Conclusion - The company is navigating a challenging market environment with declining profits and margins while focusing on strategic investments and maintaining a strong market position through technology and operational efficiency. Future growth will depend on successful project execution and market recovery.

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][10]. Core Insights - The company reported a revenue of 13.72 billion yuan for 2024, a year-on-year increase of 3.1%, while the net profit attributable to shareholders was 0.92 billion yuan, a decrease of 24.2% [1]. - The gas business's gross margin declined in the second half of 2024, primarily due to falling prices of retail gas and rare gases, but is expected to stabilize in 2025 as economic activities recover [2]. - The company signed six new gas investment projects in 2024, with a total oxygen production capacity of approximately 650,000 Nm³/h, and aims to expand its gas retail business significantly [3]. - Profit forecasts for the company indicate net profits of 1.06 billion yuan in 2025, 1.23 billion yuan in 2026, and 1.44 billion yuan in 2027, reflecting growth rates of 15.3%, 15.5%, and 17.0% respectively [4]. Summary by Sections Performance Review - In Q4 2024, the company achieved a revenue of 3.36 billion yuan, a year-on-year decrease of 4.7%, and a net profit of 0.25 billion yuan, down 32.3% [1]. Operational Analysis - The gross margin for gas sales was 18.4% in the first half of 2024 and dropped to 13.9% in the second half, influenced by price declines in retail gas and rare gases [2]. - As of March 27, 2024, the prices for liquid oxygen, nitrogen, and argon have increased by 31.2%, 14.7%, and 33.1% respectively from their recent lows [2]. Business Expansion - The company plans to issue convertible bonds worth up to 1.63 billion yuan to support its gas operations, which are expected to expand steadily [3]. - The cumulative order amount for air separation and petrochemical equipment reached 5.512 billion yuan in 2024, with 22 large and medium-sized air separation units signed, marking a historical high [3]. Profit Forecast and Valuation - The projected net profits for the company are 1.06 billion yuan in 2025, 1.23 billion yuan in 2026, and 1.44 billion yuan in 2027, with corresponding P/E ratios of 20, 17, and 15 times [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4]. Core Insights - The company reported a revenue of 13.72 billion yuan for 2024, a year-on-year increase of 3.1%, while the net profit attributable to shareholders was 0.92 billion yuan, a decrease of 24.2% [1]. - The gas business's gross margin declined in the second half of 2024, primarily due to falling prices of retail gas and rare gases, but is expected to stabilize in 2025 as economic activities recover [2]. - The company has signed six new gas investment projects in 2024, with a total oxygen production capacity of approximately 650,000 Nm³/h, and aims to expand its gas retail business significantly [3]. - The projected net profits for 2025, 2026, and 2027 are 1.06 billion yuan, 1.23 billion yuan, and 1.44 billion yuan, respectively, reflecting growth rates of 15.3%, 15.5%, and 17.0% [4]. Summary by Sections Performance Review - In Q4 2024, the company achieved a revenue of 3.36 billion yuan, a year-on-year decrease of 4.7%, and a net profit of 0.25 billion yuan, down 32.3% [1]. Operational Analysis - The gross margin for gas sales was 18.4% in the first half of 2024 and dropped to 13.9% in the second half, influenced by price declines in retail gas and rare gases [2]. - As of March 27, 2024, the prices for liquid oxygen, nitrogen, and argon have increased by 31.2%, 14.7%, and 33.1% respectively from their recent lows [2]. Business Expansion - The company plans to issue convertible bonds worth up to 1.63 billion yuan to support its gas operations and equipment sales, which are expected to grow steadily [3]. - The total order amount for air separation and petrochemical equipment reached 5.512 billion yuan in 2024, with 22 large and medium-sized air separation units signed, marking a historical high [3].

Core Viewpoint - The company, Hangyang Co., Ltd., continues to deepen its industrial gas services and air separation equipment manufacturing business while actively laying out emerging energy sectors such as hydrogen energy and CCUS [1][2]. Financial Performance - The company achieved an operating revenue of 13.716 billion yuan, a year-on-year increase of 3.06% [1]. - The net profit attributable to shareholders was 922 million yuan, a year-on-year decrease of 24.15% [1]. Market Position and Innovation - As a leading supplier of air separation equipment in China, the company maintains a leading market share in low-temperature petrochemical products such as air separation equipment and ethylene cold boxes [1]. - The company has authorized a total of 605 patents, including 170 invention patents, with 75 new patents authorized during the reporting period [1]. - The air separation equipment is widely used in the metallurgy and traditional chemical industries, with expanding market space in emerging industries driven by new demands [1]. Industrial Gas Services - The company signed six new gas investment projects during the reporting period, with a total new production capacity of approximately 650,000 Nm³/h [2]. - The company sold 45,000 tons of medical oxygen and has launched its first on-site medical gas production project [2]. - The company is actively expanding into new gas application fields while maintaining its core competitiveness in the industrial gas market [2]. Emerging Energy Business - The company is actively laying out hydrogen energy, energy storage, and CCUS projects, with a focus on integrated hydrogen production, storage, and transportation projects [2]. - The company possesses mature hydrogen purification technology and full-process design capabilities for hydrogen liquefaction [2]. Research and Development - The company spent 449 million yuan on R&D during the reporting period, remaining stable compared to the previous year [2]. - The company collaborates with universities and research institutions to form an open innovation consortium, addressing technical challenges faced by the industry [2]. Shareholder Returns - The company plans to distribute a cash dividend of 3 yuan per 10 shares (including tax) to share growth dividends with shareholders [3].

Core Viewpoint - Hangyang Co., Ltd. demonstrates resilience and growth potential in traditional gas sectors while strategically expanding into emerging fields such as electronic gases and hydrogen energy, as highlighted in their 2024 annual report [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 13.716 billion yuan, a year-on-year increase of 3.06% [2]. - The net profit attributable to shareholders was 922 million yuan, reflecting a decline of 24% year-on-year due to macroeconomic challenges and a sluggish liquid market [2]. Business Transformation - Hangyang is transitioning from a traditional equipment manufacturer to a comprehensive gas service provider, enhancing its product matrix [2]. - The gas business consistently accounts for about 60% of the company's revenue, driving overall growth [2]. Market Expansion - The company has successfully expanded its domestic and international markets, with equipment revenue increasing by 7% year-on-year [2]. - Notable projects include the operation of the largest air separation island project in Inner Mongolia and a significant contract win for a large-scale air separation project in Mexico [4]. Emerging Fields - In the electronic gas sector, the company has seen substantial growth, with sales of electronic-grade hydrogen and helium increasing by 88.31% and 92.87% respectively [2]. - The establishment of a hydrogen energy business unit aims to create a comprehensive hydrogen industry chain, with strategic partnerships formed to advance hydrogen energy projects [5]. Technological Innovation - The company invests heavily in R&D, with 449 million yuan allocated in 2024, representing 3.27% of operating revenue [7]. - Hangyang has established 16 technology innovation platforms and is involved in multiple national and provincial research projects, achieving breakthroughs in various technologies [7]. Industry Outlook - The industrial gas market in China is projected to grow from 196.6 billion yuan in 2022 to 284.2 billion yuan by 2026, with a compound annual growth rate of approximately 10% [3]. - The electronic specialty gas market is expected to grow significantly, providing substantial opportunities for companies like Hangyang with strong technical capabilities [3]. Corporate Responsibility - Hangyang emphasizes sustainable development and has integrated green practices into its operations, achieving a water reuse rate of 98.61% in 2024 [7]. - The company engages in social responsibility initiatives, including support for rural revitalization and employee development programs [8]. Future Prospects - The company is well-positioned to capitalize on domestic industrial upgrades and the growth of emerging industries, particularly in electronic specialty gases and hydrogen energy [9]. - Hangyang's dual-driven model of "equipment + service" is expected to enhance its market position, with a focus on achieving higher quality growth in the coming years [9].