Jovo Energy(SH:605090) GF SECURITIES·2024-04-24 06:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 34.64 CNY per share, compared to the current price of 26.57 CNY [3][2]. Core Insights - The company has shown steady growth, with a 6.3% year-on-year increase in net profit for Q1 2024, despite a 2.2% decline in revenue due to falling natural gas prices [1]. - The company is focusing on diversifying its LNG sources and actively developing its energy services and specialty gases businesses, which are expected to contribute significantly to profit growth [2][30]. - The company has established a competitive advantage in the aerospace specialty gases sector, with a significant project signed for the Hainan space launch site, indicating strong future growth potential [10]. Financial Summary - For the fiscal years 2024 to 2026, the projected net profits are 15.66 billion CNY, 17.84 billion CNY, and 20.83 billion CNY, respectively, with corresponding PE ratios of 10.74, 9.43, and 8.07 [2][11]. - The company’s revenue is expected to grow from 26.57 billion CNY in 2023 to 31.27 billion CNY by 2026, reflecting a compound annual growth rate [11]. - The gross margin for the energy services business reached 21% in 2023, while the specialty gases segment achieved a gross margin of 84% for high-purity helium [30].