Xinjiang Xintai Natural Gas (603393) Xinda Securities·2024-10-30 07:31Investment Rating - The investment rating for the company is "Buy," maintaining the previous rating of "Buy" [1]. Core Views - The company has shown steady revenue growth, with a 16.70% year-on-year increase in total revenue for the first three quarters of 2024, reaching 2.964 billion yuan. However, net profit decreased by 12.97% year-on-year to 907 million yuan, while net profit attributable to shareholders increased by 30.28% year-on-year to 882 million yuan [1][3]. - The company is expected to maintain stable production from its high-quality coalbed methane resources in the Pan Zhuang block from 2024 to 2028, with an anticipated annual output of around 1 billion cubic meters. The Ma Bi block is also expected to see significant production increases, with a total capacity projected to exceed 2.5 billion cubic meters per year [1][3]. - Recent acquisitions in the Xinjiang Kashgar North block are expected to provide substantial oil and gas reserves, ensuring long-term production capacity and supporting the company's growth [1][3]. Financial Summary - For Q3 2024, the company achieved a revenue of 1.013 billion yuan, a year-on-year increase of 42.67% and a quarter-on-quarter increase of 23.47%. Net profit for the same period was 291 million yuan, up 46.16% year-on-year and 4.81% quarter-on-quarter [1]. - The company forecasts net profits attributable to shareholders for 2024, 2025, and 2026 to be 1.28 billion yuan, 1.52 billion yuan, and 1.71 billion yuan, respectively, with corresponding EPS of 3.03, 3.59, and 4.04 yuan [3][4]. - The projected P/E ratios for 2024, 2025, and 2026 are 10.33X, 8.71X, and 7.74X, respectively, indicating a favorable valuation compared to historical performance [4].