JINHONG GAS(688106) 长江证券·2025-05-06 09:47Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 620 million yuan for Q1 2025, representing a year-on-year increase of 5.6% but a quarter-on-quarter decrease of 6.7%. The net profit attributable to shareholders was 40 million yuan, down 42.5% year-on-year, but turned profitable compared to the previous quarter. The net profit excluding non-recurring items was 30 million yuan, down 41.7% year-on-year, also turning profitable quarter-on-quarter [6][7]. - The company's performance is under pressure due to intensified competition, but revenue from on-site gas production has significantly increased. The gross profit margin decreased to 28.5%, down 5.6 percentage points year-on-year, while the net profit margin was 7.4%, down 5.8 percentage points year-on-year. The special gases segment saw a revenue decline of 18.7% year-on-year, while bulk gases increased by 23.9% year-on-year. On-site gas production and rental income grew by 30.1% year-on-year, and gas business revenue increased by 26.6% year-on-year [6][7]. - The on-site gas production business is expected to continue achieving breakthroughs, with significant revenue growth of 39.1% year-on-year in 2024. The business has a high gross profit margin of 62.2%, up 2.3 percentage points year-on-year. The company has secured several key projects across various industries, including metallurgy and electronics, which are expected to contribute to future revenue [7]. - The bulk gas retail business is also expanding, leveraging the company's experience in regional market integration. The company has been optimizing its management and training to enhance its operational efficiency and market reach [7]. - The company is projected to achieve net profits of 310 million yuan, 380 million yuan, and 450 million yuan for the years 2025, 2026, and 2027, respectively, indicating a positive growth outlook [7]. Financial Summary - For Q1 2025, the company achieved total revenue of 620 million yuan, with a gross profit margin of 28.5% and a net profit margin of 7.4% [6][7]. - The projected total revenue for 2024 is 2.525 billion yuan, with expected growth to 3.106 billion yuan in 2025 and further increases in subsequent years [14]. - The company’s earnings per share (EPS) are projected to be 0.42 yuan in 2024, increasing to 0.94 yuan by 2027 [14].