Ge Long Hui·2026-02-27 23:02Core Viewpoint - The company, as the only natural gas terminal sales platform under PetroChina, is transitioning from a cyclical stock to a growth-oriented entity, supported by strong cash flow and a strategic focus on downstream city gas business [1][4]. Financial Position - As of June 30, 2025, the company has cash and time deposits totaling 42.875 billion yuan, with a projected free cash flow exceeding 9 billion yuan in 2024, indicating potential for increased dividends [1]. - The company plans to distribute 45% of its profits as dividends in 2025, and the current stock price corresponds to a dividend yield of 4.3% [3][4]. Growth Potential - The company is expected to maintain high growth in gas sales, with retail gas volume growth rates projected at 3.7%, 4.4%, and 4.8% for 2025-2027 [4]. - The company is leading in the number of new city gas projects, which are anticipated to contribute significantly to gas sales growth [2]. Operational Advantages - The company operates two LNG receiving stations and is constructing a third in Fujian, expected to be operational by 2027, which will further enhance performance [3]. - The company benefits from strong resource support from its controlling shareholder, PetroChina, providing a competitive edge in the industrial user market [2]. Profitability Forecast - The company is projected to achieve net profits of 6.074 billion, 6.276 billion, and 6.606 billion yuan for 2025-2027, with corresponding EPS of 0.70, 0.72, and 0.76 yuan per share [3][4]. - The company’s price-to-earnings ratio is expected to be 11, 10, and 10 times for 2025-2027, respectively, indicating a favorable valuation compared to peers [3].