JINHONG GAS(SH:688106)2024-06-04 10:00Investment Rating - The report assigns an "Outperform" rating to the company, with a target price of 28.7 yuan based on a reasonable valuation of 35 times PE for 2024 [4]. Core Insights - The company has demonstrated rapid growth in both revenue and net profit, with a significant increase in specialty gas revenue, which grew by 46.50% year-on-year in 2023, contributing to an increase in its share of main business revenue from 39.23% to 46.34% [1][4]. - Revenue projections for the company indicate a steady growth trajectory, with expected revenues of 2.958 billion yuan in 2024, 3.516 billion yuan in 2025, and 4.218 billion yuan in 2026, reflecting year-on-year growth rates of 21.8%, 18.9%, and 20.0% respectively [2][4]. - The company's net profit is forecasted to reach 4.01 billion yuan in 2024, 4.85 billion yuan in 2025, and 6.26 billion yuan in 2026, with corresponding EPS of 0.82 yuan, 0.99 yuan, and 1.28 yuan [4]. Financial Performance Summary - The company achieved operating revenues of 1.427 billion yuan in 2023, with a year-on-year growth of 23.4% [2]. - The net profit for 2023 was reported at 315 million yuan, reflecting a year-on-year increase of 37.5% [2]. - The gross profit margin is projected to improve gradually, reaching 38.2% by 2026 [2][4]. Business Segment Analysis - The bulk gas segment, which includes oxygen, nitrogen, and carbon dioxide, is expected to see a consistent sales growth of 9% annually from 2024 to 2026 due to stable growth in downstream applications [3]. - The specialty gas segment is anticipated to continue its strong performance, with significant contributions to overall revenue growth [1][4]. - The company is also focusing on expanding its production capacity for both bulk and specialty gases, enhancing its competitive advantage in the market [32].