Blue Flame Holding(000968) 民生证券·2024-04-26 14:00Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company experienced a decline in revenue and net profit in 2023, with total revenue of 2.381 billion yuan, down 4.81% year-on-year, and a net profit attributable to shareholders of 540 million yuan, down 4.09% year-on-year [1][9]. - The decrease in government subsidies was identified as the primary reason for the decline in performance, with subsidies amounting to 255 million yuan in 2023, a decrease of 10.27% compared to the previous year [1]. - The company has significantly increased its resource reserves, with proven geological reserves reaching 47.469 billion cubic meters as of 2023 [1]. - Coalbed methane production continued to grow, with sales volume reaching 1.276 billion cubic meters, an increase of 5.89% year-on-year, while the unit price decreased by 14.10% [1]. - The company is accelerating its resource accumulation and production efforts, enhancing cooperation with state-owned enterprises to develop resource blocks [1]. Summary by Sections Financial Performance - In 2023, the company reported total revenue of 2.381 billion yuan, with a year-on-year growth rate of -4.81% [3][9]. - The net profit attributable to shareholders was 540 million yuan, reflecting a decline of 4.09% year-on-year [3][9]. - For 2024, the company is projected to achieve a net profit of 592 million yuan, with an expected growth rate of 9.66% [3][9]. Resource Development - The company has acquired additional exploration rights, increasing its resource reserves, with a total of 23 mining rights covering an area of 2,653 square kilometers [1]. - Proven geological reserves increased by 4.066 billion cubic meters in the Zhengzhuang block [1]. Production and Cost Management - The company achieved a coalbed methane sales volume of 1.276 billion cubic meters in 2023, with a unit cost of 1.14 yuan per cubic meter, down 8.50% year-on-year [1]. - The gross profit margin for coalbed methane was 34.78%, a decrease of 3.99 percentage points year-on-year [1]. Future Outlook - The company is expected to see net profits of 592 million yuan in 2024, 696 million yuan in 2025, and 802 million yuan in 2026, with corresponding EPS of 0.61, 0.72, and 0.83 yuan per share [3][9].