Xinjiang Xintai Natural Gas (603393) 长江证券·2024-12-10 02:25Investment Rating - The report maintains a "Buy" rating for Xin Natural Gas (603393.SH) [6][9]. Core Viewpoints - The acquisition of coal exploration rights enhances the company's resource coverage across gas, oil, and coal, solidifying its position in the energy sector [3][6]. - The company has successfully secured exploration rights for the Santanghu Lake mining area, covering an area of 109.28 square kilometers with an estimated coal resource of 2.093 billion tons [3][6]. - Future production growth is expected to be robust, with a projected annualized growth rate of 22.53% from 2024 to 2029, driven by multiple projects coming online [8][9]. Summary by Sections Acquisition of Coal Exploration Rights - In November 2024, the company announced that its subsidiary won the exploration rights for the Santanghu Lake mining area for approximately 3.523 billion yuan, further enhancing its energy resource reserves [3][6][48]. Strategic Importance of Xinjiang - Xinjiang is becoming a key energy supply base for the country, with increasing policy support and significant coal production growth expected [7][61]. - The region's coal production is projected to continue rising, with a focus on transforming resource advantages into industrial strengths [7][72]. Future Outlook - The company is positioned for significant production growth, with five major blocks contributing to a resource giant's emergence [8]. - The pricing strategy is expected to benefit from pipeline construction, enhancing price elasticity during peak and off-peak seasons [8]. - Cost advantages are anticipated due to the low natural gas costs in Xinjiang and the potential for further cost reductions in Shanxi's coalbed methane projects [8]. Investment Recommendations - The report forecasts earnings per share (EPS) of 3.05 yuan, 3.92 yuan, and 4.84 yuan for 2024, 2025, and 2026, respectively, indicating attractive price-to-earnings (PE) ratios [9].