GUANGHUI ENERGY(SH:600256) Dongxing Securities·2024-05-09 11:00Investment Rating - The report gives a "Strong Buy" rating for Guanghui Energy [6]. Core Views - Guanghui Energy is the first private energy company in China to integrate "gas, coal, and oil" across upstream, midstream, and downstream operations, forming a comprehensive industrial structure that includes coal, gas, coal chemical, clean energy, and carbon capture and utilization [6][13]. - The company has shown a consistent increase in revenue, reaching a peak of 61.475 billion yuan in 2023, driven primarily by natural gas and coal businesses [6][21]. - The report highlights the company's significant cost advantages in coal sales, with a unit sales cost of 310.28 yuan/ton, which is notably lower than its peers [27][28]. Summary by Sections Company Overview - Guanghui Energy focuses on natural gas, coal, and coal chemical products, and has established itself as a major player in the energy sector since its inception in 1994 [3][13]. Revenue and Profitability - The company's main revenue sources are natural gas and coal, with 2023 revenues from these segments accounting for 64.58% and 24.79% of total revenue, respectively [21][24]. - In 2023, the company reported a net profit of 5.173 billion yuan, a decline of 54.37% year-on-year due to falling energy prices [16][21]. Cost Structure and Competitive Advantage - Guanghui Energy's coal sales cost is significantly lower than that of competitors, with a 2023 cost of 310.28 yuan/ton, down 2.42% from the previous year [27][28]. - The company has built its own logistics system to enhance efficiency and reduce costs, which strengthens its competitive position in the market [28][32]. Natural Gas Business Model - The natural gas segment operates on a "self-produced + trade" model, leveraging cost and price advantages to enhance profitability [40][41]. - The company has secured long-term contracts for LNG procurement, which helps maintain low costs and high profit margins [41][43]. Coal Chemical and Green Energy Projects - The coal chemical projects benefit from low production costs and are expected to grow in performance due to high oil prices [48][49]. - The company is also advancing in green energy initiatives, including carbon capture and utilization projects [6][48]. Dividend Policy - Guanghui Energy has a strong dividend payout history, with cash dividends totaling 13.17 billion yuan from 2021 to 2023, representing 87.90% of the net profit for 2023 [6][12].