Henan Lantian Gas (SH:605368) Soochow Securities·2024-08-21 16:37Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Views - The company achieved a revenue of 2.62 billion yuan in H1 2024, representing a year-on-year increase of 2.84%, and a net profit attributable to shareholders of 341 million yuan, up 1.35% year-on-year, which is in line with expectations [2][3] - The company plans to distribute a cash dividend of 0.45 yuan per share, totaling 312 million yuan, which accounts for 91.52% of the net profit for H1 2024, indicating a strong safety margin [1][3] - The gradual implementation of the natural gas pricing policy in Henan province is expected to benefit the company, with the potential for recovery in residential price differentials [3] Financial Performance Summary - For H1 2024, the company reported: - Total revenue of 2.62 billion yuan, a 2.84% increase year-on-year - Net profit attributable to shareholders of 341 million yuan, a 1.35% increase year-on-year - Operating cash flow of 226 million yuan, a 1.3% increase year-on-year - Gross profit of 559 million yuan, with a gross margin of 21.35%, down 0.83 percentage points year-on-year [2][3] - Revenue breakdown by business segment for H1 2024: - Pipeline natural gas: Revenue down 0.54% to 1.18 billion yuan - Urban natural gas: Revenue down 2.01% to 1.00 billion yuan - Gas transmission: Revenue up 1.54% to 13 million yuan - Connection services: Revenue up 29.8% to 368 million yuan - Value-added services: Revenue up 29.1% to 52 million yuan [2][3] Earnings Forecast and Valuation - The company forecasts net profits attributable to shareholders of 650 million yuan, 690 million yuan, and 710 million yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 7.9%, 5.4%, and 2.6% [3] - The current market capitalization corresponds to P/E ratios of 14.7, 13.9, and 13.6 for 2024, 2025, and 2026 respectively [3]