HANGYANG LIMITED(SZ:002430) Huachuang Securities·2024-03-27 16:00Investment Rating - The report maintains a "Strong Buy" rating for Hangyang Co., Ltd. (002430) [1][3] Core Views - The company's equipment business shows a recovery in profitability, while the gas business is awaiting downstream recovery [1] - In 2023, the company achieved a revenue of 13.309 billion yuan, a year-on-year increase of 3.95%, and a net profit attributable to shareholders of 1.216 billion yuan, a year-on-year increase of 0.48% [1] - The company has a strong order acquisition capability and is expected to enter a peak operational phase for gas projects soon [1] Financial Performance Summary - Revenue and Profit: In 2023, total revenue was 13.309 billion yuan, with a growth rate of 4.0% expected to reach 15.595 billion yuan in 2024, representing a 17.2% increase [4][6] - Net Profit: The net profit attributable to shareholders was 1.216 billion yuan in 2023, with projections of 1.455 billion yuan in 2024, reflecting a growth of 19.7% [4][6] - Earnings Per Share (EPS): EPS for 2023 was 1.24 yuan, expected to rise to 1.48 yuan in 2024 [4][6] Business Segment Analysis - Equipment Business: The company signed new equipment sales contracts worth 6.47 billion yuan in 2023, maintaining a strong order book with contract liabilities of 3.04 billion yuan [1] - Gas Business: The gas business generated revenue of 8.19 billion yuan, a year-on-year increase of 2.3%, with pipeline gas business providing stable cash flow [1] - Retail Market: The retail market saw a continuous increase in terminal sales, with liquid sales reaching 2.4 million tons [1] Future Outlook - The company is expected to benefit from a recovery in retail gas prices, which would enhance profit elasticity [1] - Revenue projections for 2024-2026 are 15.595 billion yuan, 17.680 billion yuan, and 20.203 billion yuan, respectively, with corresponding net profits of 1.455 billion yuan, 1.697 billion yuan, and 1.985 billion yuan [4][6]