ANG(SH:603689) Guotou Securities·2024-07-03 23:30Investment Rating - The report assigns a "Buy-A" rating to the company with a target price of 10.14 yuan based on a 13x PE ratio for 2024 [8]. Core Insights - The company is expected to benefit from the rapid growth of natural gas consumption in Anhui Province, capturing a significant market share in the long-distance pipeline market. Revenue growth is projected at 13.9%, 15.2%, and 16.8% for 2024-2026 [8]. - The company maintains a strong dividend policy, distributing a total cash dividend of 167 million yuan in 2023, with a per-share dividend of 0.35 yuan. This is supported by a stable debt ratio and sufficient cash reserves [28]. - The company is also expanding into the new energy charging pile business, which is anticipated to provide additional growth opportunities in the future [28]. Summary by Sections Performance Forecast and Valuation - Revenue is forecasted to reach 6.95 billion yuan in 2024, 8.01 billion yuan in 2025, and 9.36 billion yuan in 2026, with corresponding net profits of 375 million yuan, 456 million yuan, and 550 million yuan [8]. - The gross profit margin is expected to be 10.1% in 2024, 10.4% in 2025, and 10.7% in 2026, reflecting a stable outlook despite some pressure from pipeline transportation fee adjustments [8]. - The company is compared with peers such as Blue Sky Gas and Fuan Energy, with an average PE of 12.23 for 2024, leading to the assigned target price [9]. Industry Context - The report highlights the rapid development of the new energy vehicle industry in China, with a 32.3% year-on-year increase in sales in the first four months of 2024, driving demand for charging infrastructure [3]. - The public charging pile inventory in China reached 2.977 million units by April 2024, marking a 47.0% increase year-on-year, indicating a growing need for supporting infrastructure [3]. Strategic Developments - The company is engaging in strategic collaborations in the battery standardization, charging technology, and equipment manufacturing sectors, positioning itself to benefit from the expanding electric vehicle charging network in Anhui Province [7]. - The establishment of a joint venture for charging and battery swapping infrastructure in Anhui is expected to enhance the company's growth prospects in the new energy sector [27].