Sino Prima Gas(SZ:300483) Guotou Securities·2025-12-09 14:57Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a target price of 17.33 yuan based on a 14x PE for 2026 [5][16]. Core Insights - The company has experienced significant growth in natural gas production and sales, with production increasing by 116% year-on-year to 420 million cubic meters and sales rising by 109% to 640 million cubic meters in the first half of 2025 [1]. - The company benefits from a strong resource reserve and cost control, with proven reserves of coalbed methane reaching 88.7 billion cubic meters and economically recoverable reserves at 34.24 billion cubic meters [1]. - The company has improved its investment efficiency, reducing the single well investment cost to 29 million yuan and achieving a lower cost of 0.53 yuan per cubic meter, a 36.09% decrease from 2024 [1][10]. Revenue and Profit Forecast - Revenue is projected to grow significantly, with estimates of 2.802 billion yuan in 2025, 3.365 billion yuan in 2026, and 3.9 billion yuan in 2027, reflecting growth rates of 81.3%, 20.1%, and 15.9% respectively [4][10]. - The net profit is expected to turn positive, with forecasts of 36 million yuan in 2025, 336 million yuan in 2026, and 556 million yuan in 2027 [10][11]. Business Development - The company has expanded its pipeline network through strategic acquisitions, enhancing its "development-pipeline-sales" business model, which has led to an 85% year-on-year increase in transportation volume to 468 million cubic meters in the first half of 2025 [2]. - The company is positioned to benefit from favorable policies promoting unconventional oil and gas development, which are expected to enhance energy security and increase domestic natural gas supply [3]. Financial Metrics - The report highlights a significant improvement in gross margin, projected to reach 12.5% in 2025, 15% in 2026, and 20% in 2027 [10][11]. - The company’s earnings per share (EPS) is expected to improve from -0.85 yuan in 2023 to 2.04 yuan by 2027 [11][18].