Jovo Energy(605090) 海通证券·2024-07-17 00:01Investment Rating - The report maintains an "Outperform the Market" investment rating for the company [7][13]. Core Views - The report highlights that the company, Jiufeng Energy, is a significant comprehensive energy service provider in China, particularly in the clean energy sector, where it plays a crucial role in the LPG and LNG industries. The company is accelerating its market layout in energy services and special gases, enhancing its influence in auxiliary production services and advancing its special gas business, particularly in helium technology [7][12][26]. Summary by Sections 1. Business Structure and Growth - Jiufeng Energy operates under a "one main, two wings" business model, focusing on clean energy, energy services, and special gases. The LNG and LPG businesses are the primary revenue sources, accounting for 88.44% of total revenue in 2023, with significant gross profits [12][19]. - The company has established a strong LNG receiving station in Dongguan, with an annual turnover capacity of 1.5 million tons for both LNG and LPG, and is expanding its infrastructure with new projects [12][34]. 2. Auxiliary Production Services - The report notes an increase in low-yield and inefficient gas wells in China, creating a substantial market opportunity for auxiliary production services. The auxiliary production market is projected to reach 5.369 billion yuan by 2025 [11][12][76]. - Jiufeng Energy has acquired Henan Zhongneng to enhance its auxiliary production services, currently operating over 110 gas wells, contributing to its revenue growth [41][72]. 3. Helium Production and Strategic Development - The company is actively expanding its helium production capabilities, which are critical given China's high dependence on imported helium. In 2023, Jiufeng Energy produced over 300,000 cubic meters of helium, representing 10% of domestic production [26][48]. - The report emphasizes the importance of helium in various industries, including medical and aerospace, and the company's efforts to establish a dual resource pool of domestic and imported helium [26][48]. 4. Financial Performance and Projections - Jiufeng Energy's revenue for 2023 was 26.566 billion yuan, a year-on-year increase of 10.91%, with a net profit of 1.306 billion yuan, up 19.82% from the previous year. The company expects steady revenue growth in the coming years [27][38]. - The report forecasts net profits of 1.652 billion yuan, 1.777 billion yuan, and 1.922 billion yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 2.61 yuan, 2.81 yuan, and 3.04 yuan [13][27].