ENN-NG(SH:600803) Xinda Securities·2024-08-24 10:30Investment Rating - The investment rating for the company is "Buy" [1]. Core Views - The report highlights that the company's retail gas volume has shown recovery year-on-year, and the direct sales gas business is experiencing rapid growth [1][2]. - The company's core profit in the first half of 2024 was impacted by reduced profitability in the wholesale gas overseas trade business in Q1, but there was a significant recovery in Q2 due to improved retail gas sales and lower procurement prices [1][2]. - The report anticipates that the company's retail gas business will benefit from upstream gas price declines and continued price alignment in downstream markets, leading to improved profitability [2][3]. Summary by Sections Financial Performance - In H1 2024, the company achieved operating revenue of 66.976 billion yuan, a decrease of 0.29% year-on-year, and a net profit attributable to shareholders of 2.530 billion yuan, an increase of 14.80% year-on-year [1]. - The company reported a core profit of 2.699 billion yuan in H1 2024, with a significant year-on-year growth of 44.31% [1]. - For Q2 2024, the company recorded operating revenue of 32.766 billion yuan, a decrease of 0.16% year-on-year, but a net profit of 1.449 billion yuan, which represents a 93.92% increase year-on-year [1]. Retail Gas Business - The retail gas volume in H1 2024 was 12.710 billion cubic meters, reflecting a year-on-year growth of 4.5%, with industrial and commercial gas volume growing by 5.4% [1][2]. - In Q2 2024, retail gas sales volume reached 5.473 billion cubic meters, a year-on-year increase of 7.06%, indicating a recovery compared to Q1 [1][2]. Direct Sales and Platform Gas Business - The company has signed long-term contracts with overseas LNG suppliers, with a total contract volume of 10.16 million tons per year, which is expected to support the high growth of the direct sales gas business [2][3]. - The platform trading gas market has expanded rapidly, with domestic trading gas volume in H1 2024 reaching 1.741 billion cubic meters, a year-on-year increase of 51.9% [1][2]. Dividend Policy - The company has committed to increasing cash dividends by no less than 0.15 yuan per share annually for the next three years, with projected dividends of no less than 0.66, 0.81, and 0.96 yuan per share for 2023, 2024, and 2025 respectively [3]. - The total dividend per share, including special dividends from the sale of assets, is expected to be no less than 0.91, 1.03, and 1.14 yuan for the same years [3].