GUANGHUI ENERGY(SH:600256) Changjiang Securities·2024-05-17 09:02Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company's performance in Q1 2024 was significantly impacted by a decline in product prices, with revenue dropping by 49.44% year-on-year to 10.041 billion yuan and net profit decreasing by 73.15% to 0.807 billion yuan [5][6]. - Despite the challenges, the company is progressing with key projects, highlighting its growth potential in coal and natural gas businesses [5][6]. - The company has received approval for crude oil imports, which is expected to provide additional revenue streams [6]. - The company emphasizes shareholder returns, announcing a cash dividend of 0.7 yuan per share, resulting in a dividend yield of 9.56% based on the latest stock price [6]. Summary by Sections Financial Performance - In Q1 2024, the company reported operating revenue of 10.041 billion yuan, a decrease of 49.44% year-on-year, and a net profit of 0.807 billion yuan, down 73.15% [5][6]. - The net cash flow from operating activities was 1.711 billion yuan, reflecting a decline of 20.58% year-on-year [5]. Market Conditions - The decline in performance is attributed to a significant drop in global natural gas prices, with the average LNG ex-factory price in China falling by 25.05% year-on-year to 4,451.78 yuan per ton, and a 44.12% decrease in natural gas sales [5][6]. - The coal market showed stable growth, with coal sales reaching 9.0183 million tons in Q1 2024, a year-on-year increase of 1.97%, despite a slight decline in national coal production [5]. Growth Projects - The company is advancing key projects, including the Marang coal mine, which has substantial reserves exceeding 1.8 billion tons and is characterized by high-quality coal [5][6]. - The company is also developing LNG receiving stations and hydrogen energy projects, indicating a commitment to diversifying its energy portfolio [5]. Shareholder Returns - The company plans to distribute a cash dividend of 0.7 yuan per share, with a commitment to return at least 90% of the average annual distributable profits over the past three years to shareholders [6]. - The projected earnings per share (EPS) for 2024-2026 are 0.86, 1.01, and 1.17 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 8.57X, 7.34X, and 6.31X [6].