Henan Lantian Gas (SH:605368) Southwest Securities·2024-04-07 16:00Investment Rating - The report initiates coverage with a "Hold" rating for the company [1][55]. Core Views - The company is a leading player in the natural gas sector in Henan Province, with steady revenue growth and a significant increase in gas installation business [25][36]. - The report highlights the company's stable pipeline business and the advantages of multiple gas sources, which contribute to its revenue stability [22][41]. - The company has maintained a high dividend payout ratio, reflecting its commitment to shareholder returns [26][40]. Financial Summary - The company achieved a revenue of 49.96 billion yuan in 2023, a year-on-year increase of 4.06%, and a net profit attributable to shareholders of 6.06 billion yuan, up 2.33% [25][19]. - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.95 yuan, 0.99 yuan, and 1.02 yuan, respectively [1][55]. - The return on equity (ROE) for 2023 was 16.58%, indicating strong profitability [25][55]. Business Segments - The pipeline natural gas business generated revenue of 23.22 billion yuan in 2023, a decline of 4.08%, while the city gas business saw revenue of 18.97 billion yuan, an increase of 1.62% [25][19]. - The gas installation business experienced significant growth, with revenue reaching 6.0 billion yuan, a year-on-year increase of 71.5% [19][25]. Market Position - The company has a strong regional advantage in the natural gas pipeline sector, with established infrastructure and a significant customer base in southern Henan [41][66]. - The report notes that the company has successfully expanded its operations through acquisitions, enhancing its market presence in the city gas sector [36][49].