Xinjiang Xintai Natural Gas (603393) Minsheng Securities·2024-10-30 09:49Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company achieved a revenue of 2.964 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 16.70%, and a net profit attributable to shareholders of 882 million yuan, up 30.28% year-on-year [1]. - In Q3 2024, the company reported a revenue of 1.013 billion yuan, a year-on-year increase of 42.67% and a quarter-on-quarter increase of 23.47%, with a net profit of 277 million yuan, reflecting a year-on-year growth of 43.76% [1]. - The company’s production in the Mabi block continues to grow, with daily production expected to reach 3 million cubic meters by the end of 2024, contributing significantly to revenue growth [1]. - The company has rich resource reserves and has acquired three new exploration rights, which are expected to contribute to future growth [1]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a gross profit of 419 million yuan, with a gross margin of 41.41%, a decrease of 11.24 percentage points quarter-on-quarter [1]. - The company’s other income and investment income increased significantly, with growth rates of 119.39% and 113.49% respectively [1]. - The forecast for 2024-2026 indicates net profits of 1.314 billion yuan, 1.586 billion yuan, and 1.923 billion yuan respectively, with corresponding EPS of 3.10 yuan, 3.74 yuan, and 4.54 yuan per share [2][4]. Production and Resource Development - The Mabi block's daily production has surpassed 2.5 million cubic meters and is expected to reach nearly 3 million cubic meters by the end of the year, with a projected annual production of 1.1 billion cubic meters in 2025, a 22% increase from the current year's planned production [1]. - The company has acquired new exploration rights in the Zijin Mountain area, Guizhou Danzhai blocks, and the Kashgar North project, which are expected to enhance resource reserves significantly [1]. Investment Outlook - The company is expected to benefit from the seasonal increase in natural gas prices in Q4 2024, which may positively impact performance [1]. - The report suggests a strong growth potential due to the company's increasing production capacity and resource acquisitions, maintaining a favorable outlook for the coming years [1].