Jovo Energy(SH:605090) Huachuang Securities·2025-10-22 14:02Investment Rating - The report maintains a "Strong Buy" rating for Jiufeng Energy (605090) [1] Core Views - Jiufeng Energy is advancing into the Xinjiang Yili coal-to-gas project, marking a new journey as a comprehensive energy service provider. The project has received approval from the National Development and Reform Commission and is progressing well in environmental assessments and safety reviews [1][9] - The total investment for the project is RMB 23 billion, with Jiufeng Energy contributing RMB 3.45 billion and holding a 50% stake, which corresponds to an annual production capacity of 2 billion cubic meters of natural gas [1] - The coal-to-gas project is expected to benefit from low coal prices, enhancing profitability even if natural gas prices decline. The project is positioned favorably on the cost curve, with significant potential for returns exceeding market expectations [9] Financial Summary - Projected total revenue for Jiufeng Energy is expected to decline by 17.0% in 2024, followed by a slight decrease of 2.2% in 2025, before rebounding with growth rates of 22.1% in 2026 and 11.2% in 2027 [4] - The net profit attributable to the parent company is forecasted to be RMB 1.684 billion in 2024, with a growth of 28.9%, followed by a decrease of 5.4% in 2025, and then growth rates of 11.0% and 16.8% in 2026 and 2027, respectively [4] - The target price for Jiufeng Energy is set at RMB 45.72, with the current price at RMB 33.07, indicating significant upside potential [4]