Jovo Energy(605090) 华创证券·2024-05-11 00:31Investment Rating - The report gives a "Strong Buy" rating for the company, with a target price of 36.45 yuan, based on a 15x PE multiple for 2024 [7][21] Core Views - The company has built a comprehensive business system with "one main and two wings," focusing on clean energy, energy services, and specialty gases, achieving end-to-end integration in the energy industry [17] - The clean energy sector, particularly LNG and LPG, is the core business, with a dual resource pool of "sea gas + land gas" ensuring stable supply and cost competitiveness [4][17] - The energy services sector, including energy logistics and operations, is a high-value asset, with the company controlling 8 ships and owning the only private LNG receiving station in South China [17] - The specialty gases sector, especially helium and hydrogen, is a high-growth area, with the company building a dual-resource guarantee system for helium and expanding into aerospace gas applications [17][117] Business Model and Competitive Advantages - The company operates a "dumbbell-shaped" business model, focusing on midstream assets while expanding upstream and downstream, ensuring stable pricing and efficient resource allocation [149] - Key competitive advantages include a well-established resource pool, efficient resource allocation, and stable pricing capabilities, with long-term contracts ensuring supply stability [150][151] - The company has a strong presence in South China, benefiting from higher industrial and residential gas prices in the region, which enhances profitability [159] Financial Performance and Projections - The company achieved revenue of 26.566 billion yuan in 2023, a 10.9% YoY increase, with net profit reaching 1.306 billion yuan, up 19.8% YoY [8][49] - Revenue is expected to grow to 38.376 billion yuan by 2026, with net profit projected to reach 2.006 billion yuan, reflecting a CAGR of 12.9% [8] - The company's LNG business contributed 61% of total revenue in 2023, with energy services and specialty gases becoming new profit growth drivers [98] Industry Trends and Opportunities - Global LNG supply is expected to increase, with demand peaking at 6,100 billion cubic meters by 2040, driven by energy transition and decarbonization trends [17][31] - The company is well-positioned to benefit from the growth in LNG demand, with its dual resource pool and efficient logistics network [17][149] - The specialty gases sector, particularly helium and hydrogen, is expected to see strong demand growth, driven by applications in semiconductors, fiber optics, and aerospace [17][117] Strategic Expansion and Acquisitions - The company has expanded its energy services and specialty gases businesses through acquisitions, including Sichuan Sentai, Huayou Zhonglan, and Henan Zhongneng, enhancing its upstream and downstream capabilities [93][94] - The company is also investing in new helium production facilities and expanding its hydrogen business, with a focus on aerospace gas applications [117][149]