Xinjiang Xintai Natural Gas (SH:603393) Minsheng Securities·2024-04-28 00:30Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company achieved a revenue of 3.517 billion yuan in 2023, a year-on-year increase of 2.94%, and a net profit attributable to shareholders of 1.048 billion yuan, up 13.45% year-on-year [2]. - In Q1 2024, the company reported a revenue of 1.131 billion yuan, representing an 11.11% year-on-year growth, and a net profit of 332 million yuan, which is a significant increase of 126.85% year-on-year [2]. - The company has rich coalbed methane reserves, with 2P reserves of approximately 19.7 billion cubic meters as of the end of 2023 [2]. - The company is actively expanding its industrial chain, including the privatization of Yamei Energy and the establishment of new partnerships for resource development [2]. - A stock incentive plan has been introduced, indicating confidence in achieving a production growth rate of no less than 20% by 2025 compared to 2023 [2]. Financial Performance Summary - For 2023, the company reported total revenue of 3.517 billion yuan and a net profit of 1.048 billion yuan, with projected revenues of 4.254 billion yuan in 2024, 4.665 billion yuan in 2025, and 5.065 billion yuan in 2026 [3][6]. - The net profit attributable to shareholders is expected to grow to 1.506 billion yuan in 2024, 1.702 billion yuan in 2025, and 1.899 billion yuan in 2026 [3][6]. - The earnings per share (EPS) are projected to be 3.55 yuan in 2024, 4.02 yuan in 2025, and 4.48 yuan in 2026, with corresponding price-to-earnings (PE) ratios of 10, 8, and 8 respectively [3][6]. Operational Highlights - The total production of coalbed methane reached 1.704 billion cubic meters in 2023, a year-on-year increase of 16.16%, while total sales reached 1.625 billion cubic meters, up 14.78% year-on-year [2]. - The average selling price of coalbed methane was 2.09 yuan per cubic meter in 2023, a decrease of 7.83% year-on-year [2]. - The company’s coalbed methane business achieved a gross margin of 59.87%, despite a year-on-year decline of 5.19 percentage points [2].