HANGYANG LIMITED(SZ:002430) Huachuang Securities·2024-11-01 04:43Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 30.4 CNY, compared to the current price of 25.16 CNY [1][2]. Core Insights - The company's Q3 performance met expectations, with revenue for the first three quarters of 2024 reaching 10.35 billion CNY, a year-on-year increase of 5.9%. However, the net profit attributable to shareholders decreased by 20.7% to 680 million CNY [1][2]. - The report highlights a weak domestic gas demand in Q3, attributed to a sluggish economic recovery, particularly in real estate and manufacturing sectors, which has pressured the industrial gas sector [2]. - The company has a solid order backlog, with significant projects expected to come online soon, indicating a potential peak in operational capacity [2]. - The company maintains a leading position in the air separation equipment sector, with strong overseas order performance, which is expected to enhance profitability [2]. - The report suggests that if retail gas prices recover, the company's profit elasticity will become more pronounced, supporting its growth trajectory towards becoming a major player in the industrial gas sector [2]. Financial Summary - For 2024-2026, the company is projected to achieve revenues of 14.22 billion CNY, 16.28 billion CNY, and 19.38 billion CNY, representing year-on-year growth rates of 6.8%, 14.5%, and 19.0% respectively [3]. - The net profit attributable to shareholders is forecasted to be 960 million CNY, 1.30 billion CNY, and 1.73 billion CNY for the same period, with a significant decline of 21.0% in 2024, followed by recoveries of 35.4% and 33.0% in 2025 and 2026 respectively [3]. - Earnings per share (EPS) are expected to be 0.98 CNY, 1.32 CNY, and 1.76 CNY for 2024, 2025, and 2026 respectively [3].