Guangzhou Guanggang Gases & Energy (SH:688548) Haitong Securities·2024-08-05 08:01Investment Rating - The investment rating for the company is "Outperform the Market" [2][5][7] Core Insights - The company reported a revenue of 973 million yuan for the first half of 2024, representing a year-on-year growth of 8.60%, while the net profit attributable to shareholders decreased by 14.39% to 136 million yuan [4][5] - The electronic bulk gas segment achieved a revenue of 705 million yuan, a significant year-on-year increase of 66.81%, contributing 72.49% to total revenue, although its gross margin decreased by 8.37 percentage points to 32.98% [4][5] - The general industrial gas segment saw a revenue of 223 million yuan, a modest year-on-year growth of 1.52%, accounting for 22.88% of total revenue, with a gross margin of 17.69%, down 14.33 percentage points [4][5] - The company is expanding its core electronic bulk gas business and has made progress in general industrial gas projects, enhancing its market position [5] - Helium sales volume continued to grow, but pricing pressures remain, impacting the gross margin of the main business [5] - The company forecasts revenues of 2.097 billion yuan, 2.580 billion yuan, and 3.164 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 324 million yuan, 450 million yuan, and 580 million yuan [6][9] - The estimated reasonable market capitalization for the company is between 14.601 billion yuan and 16.224 billion yuan, translating to a reasonable share price range of 11.07 to 12.30 yuan [7][9] Financial Performance - For the first half of 2024, the company reported total assets of 7.684 billion yuan [4] - The gross margin is projected to be 32.6% in 2024, with a gradual recovery expected in subsequent years [9] - The company’s net profit margin is expected to be 15.5% in 2024, improving to 18.3% by 2026 [9] - The company maintains a strong liquidity position with a current ratio of 4.23 in 2023, projected to decrease to 2.51 by 2025 [10] Market Comparison - The company is positioned as a leading supplier in the electronic bulk gas sector, with significant competitive advantages and a strong domestic market presence [7] - The average PE ratio for comparable companies in the electronic gas sector is 30.45X for 2024E and 23.69X for 2025E, indicating a favorable valuation for the company [8]