GUANGHUI ENERGY(SH:600256) Huachuang Securities·2024-04-26 14:02Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [1][15]. Core Views - The company's Q1 2024 revenue decreased by 49.44% year-on-year to 10.041 billion yuan, with a net profit of 808 million yuan, down 73.15% year-on-year [1]. - The decline in revenue is attributed to reduced production and weak product prices, particularly in coal and natural gas sectors [1]. - The company is accelerating its green energy transformation, with successful operations in hydrogen energy and CCUS projects [1]. - The company plans to distribute a cash dividend of 0.7 yuan per share, reflecting a high dividend yield of 9.6%, indicating long-term investment value [1]. Financial Summary - Q1 2024 financial performance: - Revenue: 10.041 billion yuan, down 49.44% year-on-year - Net profit: 808 million yuan, down 73.15% year-on-year - Gross margin: 17.48%, up 6.05 percentage points year-on-year - Net margin: 7.67%, down 7.31 percentage points year-on-year [1]. - Profit forecasts for 2024 have been adjusted to 5.504 billion yuan, with expected EPS of 0.84 yuan [2][8]. - The company’s market capitalization is approximately 48.061 billion yuan, with a current price of 7.32 yuan and a target price of 8.40 yuan [4][5]. Strategic Developments - The company is focusing on green energy projects, with a successful hydrogen energy demonstration project and ongoing CCUS initiatives [1]. - The hydrogen energy project has achieved significant milestones, including the successful operation of hydrogen production facilities [1].