Foran Energy(SZ:002911) HTSC·2026-01-20 06:42Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its stock performance [1]. Core Insights - The company achieved a total revenue of 33.754 billion RMB in 2025, representing a year-on-year increase of 6.85%. The net profit attributable to shareholders was 1.001 billion RMB, up 17.26% year-on-year, exceeding expectations due to the expansion of its energy and chemical business and the implementation of a diversified energy strategy [1][2]. - The company's diversified energy strategy is expected to drive long-term growth, with active expansion into sectors such as petrochemicals, hydrogen energy, thermal energy, photovoltaics, and energy storage, enhancing its revenue sources and aligning with industry trends [3]. - The financial position remains robust, with total assets of 20.193 billion RMB at the end of 2025, a 4.05% increase year-on-year. The company has a high dividend policy, distributing 0.25 RMB per share, with a payout ratio of 66%, ensuring strong shareholder returns [4]. Summary by Sections Financial Performance - In 2025, the company supplied 4.931 billion cubic meters of natural gas, with revenue from the urban gas business at 12.493 billion RMB, down 14.83% year-on-year. However, the energy and chemical business generated 15.717 billion RMB, a 20.97% increase, becoming the core driver of revenue growth [2]. - The company plans to maintain a cash dividend of no less than 65% of the net profit attributable to shareholders for the next three years, reinforcing its commitment to shareholder returns [4]. Growth Strategy - The company is not limited to traditional gas operations but is actively pursuing a diversified energy layout, which is expected to inject new momentum into its long-term development [3]. - The strategic focus on "energy + technology + supply chain" is showing positive results, with the company effectively mitigating risks associated with single business fluctuations and enhancing profitability [2][3]. Valuation and Forecast - The profit forecast for 2026 and 2027 has been raised by 1.3% to 1.05 billion RMB and 1.1 billion RMB, respectively, with corresponding EPS of 0.81 RMB and 0.85 RMB. The target price has been adjusted to 14.58 RMB based on a 18x PE ratio for 2026 [5][7].