ShaanGu(601369) 浙商证券·2024-10-27 02:23Investment Rating - The investment rating for the company is "Accumulate" [2][3][16] Core Views - The company is a leading player in the turbine machinery sector in China, with a compound annual growth rate (CAGR) of 17% in revenue and 27% in net profit from 2017 to 2023. The company aims to become a "world-class smart green energy enterprise" and has established three main business segments: energy conversion equipment manufacturing, energy conversion system services, and energy infrastructure operation [2][4] - The company benefits from the growing demand in the metallurgy and petrochemical industries, which are cyclical in nature. The expansion of industrial gases and distributed energy EPC services is expected to enhance the company's growth trajectory [2][4] - The energy conversion equipment manufacturing segment is highlighted as a key area, with the company holding a dominant market share in axial compressors and significant growth potential in compressed air energy storage technology [2][4] - The energy conversion system services segment leverages the company's equipment advantages to provide energy-saving and environmentally friendly solutions, contributing to increased efficiency for clients [2][4] - The energy infrastructure operation segment is expected to see growth driven by domestic substitution and outsourcing of industrial gas services, with the company's subsidiary, Qin Feng Gas, gaining market share [2][4] Financial Summary - The company's projected financials indicate a revenue forecast of 10,143 million yuan for 2023, with a slight decline of 6%, followed by a recovery with expected growth rates of 6%, 8%, and 10% for the years 2024, 2025, and 2026 respectively [2][13] - The net profit attributable to the parent company is forecasted to be 1,020 million yuan in 2023, with growth rates of 5%, 3%, 4%, and 6% for the subsequent years [2][13] - Earnings per share (EPS) is projected to increase from 0.59 yuan in 2023 to 0.67 yuan in 2026, reflecting a positive trend in profitability [2][14] Market Position and Growth Potential - The company is positioned as a leader in the industrial gas market, which is expected to grow from approximately 212.9 billion yuan in 2023 to 284.2 billion yuan by 2026, representing a CAGR of 10% [2][4] - The company’s competitive advantages include advanced manufacturing capabilities and a strong brand presence in the energy conversion equipment sector [2][4] - The report emphasizes the potential for compressed air energy storage as a promising non-chemical energy storage technology, with significant projected installed capacity by 2025 and 2030 [2][4]