山西证券：研究早观点-20241212

Company Overview - The report focuses on China Xuyang Group (01907.HK), a leading producer of coke, which is transitioning into a prominent supplier of new materials and green hydrogen [4][6] - On December 6, 2024, the company announced the acquisition of 100% equity in Xuyang Research Institute for RMB 181 million, enhancing its operational stability and management efficiency [6][7] Coke Business - China Xuyang Group is a global leader in coke production with a management capacity of 22 million tons, including 15.6 million tons self-built and 6.4 million tons under operational management [8] - The company aims to increase its annual coke processing capacity to 30 million tons or more by 2025, with a current market share of 1.8% globally and 2.5% in China, showing year-on-year increases [8] - The company has implemented strategies to reduce costs and enhance profitability, including customized production and strategic partnerships with major mines [8] Chemical and New Materials Business - The company has a leading position in several chemical products, leveraging its extensive coking operations to expand into fine chemicals [9] - It is the largest global producer of crude benzene and the second-largest producer of high-temperature coal tar and caprolactam, with a total chemical production capacity of 6.03 million tons [9] - Recent expansions into downstream new materials, such as nylon, are expected to drive future growth in fine chemical segments [9] Hydrogen Energy Business - The company is the largest producer of high-purity hydrogen in the Beijing-Tianjin-Hebei region, focusing on industrial by-product hydrogen and developing green hydrogen technologies [10][12] - As of the 2024 semi-annual report, the hydrogen production capacity reached 24,000 kg per day, with plans to expand hydrogen refueling stations [12] - The company is actively involved in hydrogen industrialization plans across various cities, aiming for a comprehensive supply chain in the hydrogen energy sector [12] Investment Outlook - The projected EPS for the company from 2024 to 2026 is 0.08, 0.12, and 0.15, respectively, with corresponding PE ratios of 36.1, 23.6, and 19.3 times based on the closing price of RMB 2.84 on December 10 [13] - The company is expected to benefit from the recovery of the coke-coal price spread and growth in new materials and renewable energy sectors, leading to improved performance [13] - The report initiates coverage with a "Buy-B" rating, highlighting the company's competitive advantages and growth potential in various sectors [13]