Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 1.42, based on a P/E ratio of 7.2x for 2024 and a DDM valuation method assuming r=7% and g=0% [1][3]. Core Insights - The company, Binhai Investment (2886.HK), is a leading gas distributor in China, primarily operating in Tianjin and expanding to 8 provinces and 2 cities, with a strong focus on commercial clients [1][6]. - The company has a robust shareholder structure, with major stakeholders including Tianjin TEDA Investment Holding and Sinopec Great Wall Gas, providing strong support for its development [4][6]. - The company has seen a steady increase in gas sales volume, achieving 1.55 billion cubic meters in 2023, a year-on-year growth of 9%, and expects further growth in 2024 [1][6]. - The company has diversified its gas sources and reduced procurement costs by signing contracts with multiple suppliers, enhancing its supply chain flexibility [1][10]. - The company has launched value-added services, including the sale of gas appliances and safety products, which are expected to grow rapidly, with a gross profit of HKD 23.76 million in the first half of 2024, up 31.2% year-on-year [1][10]. - The company has maintained a high dividend payout, with a dividend yield of around 7%, making it attractive to investors [1][13]. Financial Performance and Valuation Summary - The company's revenue for 2023 was HKD 6.41 billion, with a projected increase to HKD 6.98 billion in 2024, reflecting a growth rate of 8.9% [2]. - The net profit attributable to shareholders for 2023 was HKD 256.61 million, with a slight increase expected in 2024 [2]. - The earnings per share (EPS) for 2024 is projected to be HKD 0.20, with a P/E ratio of 7.2x corresponding to a target price of HKD 1.42 [1][2].
滨海投资：全国优质燃气分销商，高股息价值凸显