ShaanGu(601369) 国泰君安·2024-10-27 10:13Investment Rating - The report maintains a "Buy" rating for the company [4][15]. Core Views - The company's performance in the third quarter of 2024 met expectations, with steady growth in the industrial gas business and an anticipated recovery in equipment demand. The compressed air energy storage projects are expected to accelerate development [3][4]. Financial Summary - For the first three quarters of 2024, the company achieved revenue of 7.289 billion yuan (up 0.28% year-on-year) and a net profit attributable to shareholders of 666 million yuan (down 8.25 year-on-year). The third quarter alone saw revenue of 2.285 billion yuan (up 9.70% year-on-year) and a net profit of 208 million yuan (up 5.37% year-on-year) [4][5]. - The company forecasts EPS for 2024-2026 to be 0.64, 0.72, and 0.83 yuan respectively, with a target price raised to 10.44 yuan based on a PE of 14.5 times for 2025 [4][5]. Business Segments - The industrial gas business is experiencing steady growth, with the Qin Feng gas segment's revenue increasing by 17% year-on-year, reaching a historical high for the same period. Liquid production for Qin Feng gas increased by 4.39% compared to the same period in 2023 [4]. - The energy conversion equipment segment is expected to develop steadily, with a recovery in demand from downstream metallurgy and chemical sectors [4]. - The compressed air energy storage market presents significant opportunities, with the company leading in technology and application. It has developed the largest capacity compressed air storage system solutions, covering various scales from 10MW to 660MW [4].