Jovo Energy(SH:605090) EBSCN·2025-09-30 10:55Investment Rating - The report maintains a "Buy" rating for Jiufeng Energy (605090.SH) [1] Core Views - Jiufeng Energy plans to invest in a coal-to-gas project in Xinjiang, seeking new growth opportunities. The total investment for the project is estimated at RMB 230.33 billion, with Jiufeng's contribution not exceeding RMB 34.55 billion, which will provide the company with a 50% stake in the project, corresponding to an annual production of 2 billion cubic meters of natural gas [5][6] - The coal-to-gas project is part of a larger initiative to enhance Jiufeng's upstream resource pool, which will include a diversified mix of equity gas, long-term contract gas, and spot gas, thereby expanding the company's business landscape and development potential [6] - The coal-to-gas industry in China is entering a new phase of large-scale development, supported by abundant coal reserves and ongoing infrastructure improvements, which are expected to enhance the supply capacity of natural gas resources [7] Summary by Sections Investment Overview - Jiufeng Energy is collaborating with Xinjiang Qinghua Energy Group and Henan Future Silk Road Clean Energy Partnership to develop the second phase of the Xinjiang Qinghua coal-to-gas project, with a construction period of 24 to 36 months [6] Financial Projections - The projected annual sales revenue from the project upon completion is RMB 7.3 billion, with an estimated annual profit of RMB 1.477 billion [6] - Jiufeng Energy's net profit forecasts for 2025-2027 are RMB 1.732 billion, RMB 1.979 billion, and RMB 2.245 billion, respectively, with corresponding EPS of 2.55, 2.91, and 3.31 yuan [9][10] Industry Outlook - The coal-to-gas sector is expected to grow significantly, with ongoing projects and infrastructure developments enhancing the supply chain and resource availability [7] - The establishment of major pipelines and projects in Xinjiang is anticipated to further strengthen the natural gas supply system in China [7]