Jovo Energy(SH:605090) Guotou Securities·2025-10-28 15:12Investment Rating - The investment rating for the company is "Buy-A" with a target price of 35.50 CNY, maintaining the rating [6]. Core Views - The company reported a revenue of 15.608 billion CNY for the first three quarters of 2025, a decrease of 8.45% year-on-year, and a net profit of 1.241 billion CNY, down 19.13% year-on-year. The decline in performance is attributed to extreme weather impacts and operational costs [1][2]. - The LNG business has shown resilience with steady growth in gross profit, while the LPG business is expected to see rapid profit growth due to improved operational conditions [2]. - The company plans to invest in a coal-to-gas project in Xinjiang, which will enhance its resource pool and fill the gap in equity gas resources [3]. Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 5.180 billion CNY, down 10.39% year-on-year, and a net profit of 380 million CNY, down 11.29% year-on-year. The decline was mainly due to weather-related disruptions and increased operational costs [1]. - The company expects revenues of 22.865 billion CNY, 25.180 billion CNY, and 27.138 billion CNY for 2025, 2026, and 2027 respectively, with growth rates of 3.7%, 10.1%, and 7.8% [10][11]. Business Development - The LNG business has maintained strong growth, with gross profit per ton increasing year-on-year and quarter-on-quarter. The LPG business is set to benefit from the completion of maintenance at the Guangzhou Huakai receiving station and improved operational conditions [2]. - The company is investing in a coal-to-natural gas project in Xinjiang, with a total investment of 23.033 billion CNY, aiming to produce 5.5 billion cubic meters of gas annually, which will enhance its upstream resource diversity [3]. Market Position - The company has a market capitalization of approximately 22.36 billion CNY and a circulating market value of about 22.31 billion CNY. The stock price as of October 28, 2025, is 32.16 CNY, with a 12-month price range of 23.5 to 35.32 CNY [6].