JINHONG GAS(SH:688106) KAIYUAN SECURITIES·2024-05-24 06:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected performance that will exceed the market by over 20% [25][11][18]. Core Views - The company has signed a supply contract worth approximately RMB 1.86 billion (excluding tax) with Shandong Ruilin Polymer Materials Co., Ltd., which will positively impact future operating performance and enhance profitability and core competitiveness [4][11]. - The company is optimistic about the long-term development of its bulk gas on-site production business model and maintains profit forecasts for 2024-2026, expecting net profits of RMB 405 million, RMB 506 million, and RMB 625 million respectively [4][11]. - The company has achieved breakthroughs in small, medium, and large-scale on-site gas production projects, demonstrating rapid development in this business segment [29][30]. Financial Summary - Revenue is projected to grow from RMB 2,427 million in 2023 to RMB 4,250 million in 2026, with a year-on-year growth rate of 19.1% in 2024 and 23.8% in 2025 [6][14]. - Net profit is expected to increase from RMB 315 million in 2023 to RMB 625 million in 2026, with a year-on-year growth rate of 28.5% in 2024 and 25.0% in 2025 [6][14]. - The company's gross margin is projected to remain stable around 36.6% to 36.8% from 2024 to 2026, while the net margin is expected to improve from 14.4% in 2024 to 15.2% in 2026 [6][14]. Business Development - The company has established a large industrial division to expand its medium and large on-site gas production business and has signed multiple contracts for on-site gas supply projects [12][30]. - The company is actively building air separation projects and planning for surplus liquid gas production to enhance raw material self-sufficiency, which will support future on-site gas production projects [30][12].