JINHONG GAS(SH:688106) Tai Ping Yang Zheng Quan·2025-03-30 14:49Investment Rating - The report maintains a "Buy" rating for the company Jin Hong Gas (688106) [1] Core Views - The company's performance is under short-term pressure, but the on-site gas production business is experiencing rapid growth [1][9] - The company reported a revenue of 2.525 billion yuan for 2024, a year-on-year increase of 4.03%, and a net profit attributable to shareholders of 201 million yuan, a year-on-year decline of 36.12% [4][5] - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares (before tax) [4] Revenue and Profit Analysis - The revenue breakdown for 2024 includes: - Bulk gases: 973 million yuan - Specialty gases: 963 million yuan - On-site gas production: 278 million yuan - Rental income: 213 million yuan - Clean coal gas: 0.39 million yuan [5] - The gross profit for these segments was: - Bulk gases: 304 million yuan - Specialty gases: 267 million yuan - On-site gas production: 173 million yuan - Rental income: 39 million yuan [5] - The average price of specialty gases dropped from 5.71 yuan/kg in 2023 to 3.68 yuan/kg in 2024, with the gross margin decreasing from 40.36% to 27.69% [5] Future Projections - The company has secured substantial orders in electronic bulk gas and on-site gas production, with total contract amounts reaching 8.8 billion yuan, of which 8.58 billion yuan is pending fulfillment [6] - The projected net profits for 2025, 2026, and 2027 are estimated at 280 million yuan, 370 million yuan, and 419 million yuan respectively, corresponding to PE ratios of 32, 24, and 21 times [6][7] Financial Metrics - The company’s financial metrics for 2024 and projections for 2025-2027 include: - Revenue growth rates: 4.03% for 2024, 14.99% for 2025, 10.30% for 2026, and 7.78% for 2027 [7] - Net profit growth rates: -36.12% for 2024, 39.07% for 2025, 32.12% for 2026, and 13.25% for 2027 [7] - Diluted earnings per share (EPS) are projected to be 0.42 yuan for 2024, increasing to 0.87 yuan by 2027 [7]