ENN-NG(600803)2025-01-15 07:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of Rmb 25.00 per share [4][5]. Core Insights - The company expects platform gas sales to reach 55-60 billion cubic meters in 2024, indicating a double-digit year-on-year growth compared to 2023 [2][3]. - Retail gas volume is projected to grow by 5% in 2024, while the revenue from the smart energy/home business is expected to maintain a 20% year-on-year growth [3]. - The company has recently achieved an MSCI ESG rating upgrade to AAA, becoming the first public utility company in China to receive this rating [3]. Summary by Sections Sales and Revenue Projections - For the first three quarters of 2024, platform gas sales reached 40.6 billion cubic meters, with expectations for the full year to achieve 55-60 billion cubic meters [2]. - The average price difference for platform gas in the first three quarters was approximately Rmb 0.45 per cubic meter, with expectations for a slight decline in the fourth quarter [2]. Financial Performance - The company anticipates retail gas sales to grow by 5% in 2024, with the Zhoushan LNG receiving station processing volume expected to reach 2.4 million tons [3]. - The company aims to maintain a dividend per share of Rmb 1.03 for 2024 and Rmb 1.14 for 2025 [3]. Valuation Metrics - The valuation is based on a DCF method with a WACC of 7.4%, corresponding to 15/14 times the expected PE for 2024/2025 [4]. - The company's market capitalization is Rmb 61.3 billion (approximately US$8.36 billion) with a current share price of Rmb 19.78 [5]. Market Outlook - The forecasted stock price increase is 26.4%, with a predicted dividend yield of 5.8%, leading to an overall expected return of 32.2% [9].