GUANGHUI ENERGY(SH:600256)2024-09-05 00:07Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 9.02 based on a 2024 EPS of RMB 0.82 and a PE of 11x [3][11]. Core Insights - In H1 2024, the company reported a revenue of RMB 17.25 billion, a decrease of 50.84% year-on-year, and a net profit attributable to shareholders of RMB 1.46 billion, down 64.7% year-on-year [8][11]. - The natural gas segment faced significant challenges, with total sales of 2.18 billion cubic meters, a decline of 57.00% year-on-year, while LNG production increased by 18.51% to 0.37 billion cubic meters due to project advancements [8][10]. - Coal sales slightly decreased, with raw coal production at 9.77 million tons, down 17.80% year-on-year, and total coal sales at 15.71 million tons, down 2.66% year-on-year [9][10]. - The Malang Coal Mine project received approval and is expected to contribute significantly in H2 2024, with an approved capacity of 10 million tons/year [9][10]. - The hydrogen energy demonstration project is operational, meeting design standards with a hydrogen production capacity of 1000Nm³/h and a refueling station capacity of 2000kg/d [10][11]. Financial Summary - The company’s revenue for 2024 is projected to be RMB 50.43 billion, reflecting an 18.0% decrease from 2023, with a gradual recovery expected in subsequent years [4][6]. - Net profit is expected to recover to RMB 5.42 billion in 2024, with EPS projected at RMB 0.82, increasing to RMB 1.24 by 2026 [3][4]. - The gross margin is anticipated to improve from 16.3% in 2023 to 22.4% in 2025, indicating a positive trend in profitability [4][6].