JINHONG GAS(SH:688106) ZHONGTAI SECURITIES·2024-11-04 08:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is experiencing short-term pressure in specialty gases, while large industrial and electronic bulk gases are steadily advancing [1] - The company reported a revenue of 1.86 billion yuan for Q1-Q3 2024, representing a year-on-year increase of 4.4% [3] - The net profit attributable to the parent company for the same period was 210 million yuan, a decrease of 18.7% year-on-year [3] - The report highlights significant price reductions in specialty gases impacting profitability, with a gross margin of 30.7% in Q3 2024, down 6.4 percentage points year-on-year [1][3] Financial Performance Summary - Revenue projections for the company are as follows: - 2023A: 2,427 million yuan - 2024E: 2,465 million yuan - 2025E: 3,208 million yuan - 2026E: 3,843 million yuan - Year-on-year growth rates for revenue are projected at: - 2023A: 23% - 2024E: 2% - 2025E: 30% - 2026E: 20% [1] - Net profit attributable to the parent company is forecasted as: - 2023A: 315 million yuan - 2024E: 278 million yuan - 2025E: 332 million yuan - 2026E: 433 million yuan - Year-on-year growth rates for net profit are projected at: - 2023A: 37% - 2024E: -12% - 2025E: 19% - 2026E: 31% [1] Market Position and Strategy - The company is positioned as a leading private industrial gas supplier in China, focusing on a dual-driven strategy of bulk and specialty gases [1] - The report indicates that the company is expanding its presence in the integrated circuit sector, with revenue from this sector growing by 30% year-on-year [1] - The company aims to mitigate the impact of declining specialty gas prices by increasing sales volume and diversifying its product offerings [1]