JINHONG GAS(SH:688106) KAIYUAN SECURITIES·2024-07-14 11:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][12]. Core Viewpoints - The company is a comprehensive gas service provider, focusing on the development of electronic bulk on-site gas production, which is expected to become a new growth driver for the company [2][12]. - The electronic bulk gas market, which is a key material for semiconductor manufacturing, has a broad market space and is driven by three long-term demand factors [3][9]. - The domestic market is entering a window for domestic substitution as four major foreign companies have long dominated the market [4][14]. Summary by Relevant Sections Demand Side - The downstream demand for electronic bulk gas is extensive, with three driving forces indicating a long-term growth potential [3][31]. - In the IC manufacturing sector, capacity expansion and rising utilization rates are expected to boost the demand for electronic gases [54][60]. Supply Side - The global electronic bulk gas market is characterized by oligopoly, with four major foreign companies holding a 70% market share. Domestic companies like Jin Hong Gas are accelerating efforts to break this monopoly [14][30]. - The domestic electronic bulk gas market is projected to grow from 95 billion yuan in 2022 to 122 billion yuan by 2025, with a CAGR of 8.70% [30][31]. Financial Projections - The company is expected to achieve a net profit of 4.05 billion yuan in 2024, 5.06 billion yuan in 2025, and 6.25 billion yuan in 2026, with corresponding EPS of 0.83, 1.04, and 1.28 yuan [12][15]. - The current price-to-earnings (P/E) ratios are projected to be 21.4, 17.2, and 13.9 for the years 2024, 2025, and 2026 respectively [12][15]. Industry Trends - The electronic bulk gas market is expected to benefit from ongoing investments in semiconductor manufacturing equipment, with China's share of global semiconductor equipment spending increasing from 26% in 2022 to 34% in 2023 [57][64]. - The domestic semiconductor materials market is growing at a faster rate than the global average, indicating strong demand for electronic gases [64][65].