HANGYANG LIMITED(002430) 浙商证券·2024-12-31 12:23Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on its strong market position and growth potential [67][64] Core Views - The company is transitioning from being a leading domestic air separation equipment manufacturer to a comprehensive industrial gas supplier, leveraging its strong market position and technological advantages [95][96] - The industrial gas industry is expected to benefit from macroeconomic recovery, outsourcing trends, and increasing demand from new sectors such as semiconductors and new energy [54][6] - The company's gas business is expected to grow significantly, driven by macroeconomic recovery, market share expansion, and new product categories [54][116] Business Performance - In 2023, the company reported revenue of 13.3 billion yuan, a 4% year-on-year increase, and net profit attributable to shareholders of 1.2 billion yuan, a 0.5% year-on-year increase [3] - The company's gross margin in 2023 was 22.9%, with a net margin of 9.6% [28][29] - The company's new contract value for air separation and petrochemical equipment in 2023 was 6.57 billion yuan, a slight decrease of 0.6% year-on-year [31][32] Market Space and Growth Drivers - The global industrial gas market was valued at 10.238 trillion yuan in 2022, with a CAGR of 7.2% from 2017 to 2022, and is expected to reach 13.299 trillion yuan by 2026, with a CAGR of 6.8% from 2022 to 2026 [6][9] - The domestic industrial gas market was valued at 1.964 trillion yuan in 2022, with a CAGR of 10.4% from 2017 to 2022, and is expected to grow to 2.842 trillion yuan by 2026, with a CAGR of 9.68% from 2022 to 2026 [12] - The company's industrial gas business accounted for 62% of total revenue in 2023, with manufacturing contributing 35% [32][44] Industry Trends - The outsourcing trend in the industrial gas sector is accelerating, with the outsourcing market share in China expected to increase from 58.4% in 2021 to 65.7% by 2026 [39][40] - The company is expanding its presence in the electronic specialty gas and new energy gas sectors, with significant investments in related projects [116][118] Competitive Landscape - The global industrial gas market is highly concentrated, with the top four companies (CR4) accounting for 54% of the market in 2021, down from 71% in 2011 [9][11] - In the domestic market, the top six companies (CR6) account for 72% of the market, with the company holding a 6.3% market share [12][14] - The company is the leading domestic player in large-scale air separation equipment, with a market share of 43.2% in 2022 [100][121] Overseas Expansion - The company is actively expanding its overseas market presence, with overseas revenue reaching 840 million yuan in 2023, accounting for 6.3% of total revenue [134][136] - The company has secured significant overseas contracts, including a 64,000 Nm³/h air separation unit for a major steel plant in India [126][138] Technological Advancements - The company has developed advanced air separation equipment with a maximum capacity of 120,000 Nm³/h, and its total oxygen production capacity exceeds 3.3 million Nm³/h [133] - The company has made breakthroughs in specialty gases, achieving integrated production, storage, and application of gases such as neon, helium, krypton, and xenon, providing solutions for critical industries like semiconductors, nuclear power, and aerospace [131] Financial Projections - The company is expected to achieve net profits of 980 million yuan, 1.311 billion yuan, and 1.593 billion yuan in 2024, 2025, and 2026, respectively, with corresponding PE ratios of 22, 17, and 14 times [64][67]