Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The report highlights that the company has achieved a revenue of 3.777 billion yuan in 2024, representing a year-on-year increase of 7.4%. However, net profit decreased by 15.23% to 1.205 billion yuan, while the attributable net profit increased by 13.12% to 1.185 billion yuan. The cash flow from operating activities was 2.071 billion yuan, up 4.9% year-on-year [1][6] - The report emphasizes the growth in the Ma Bi block, with significant production increases expected in the long term. The company is focusing on enhancing its coalbed methane extraction and sales, which contributed 2.908 billion yuan in revenue, a 21.3% increase year-on-year, accounting for 76.99% of total revenue [3][5] Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 812 million yuan, down 16.89% year-on-year and 19.84% quarter-on-quarter. Net profit for the same period was 298 million yuan, a decrease of 21.37% year-on-year but an increase of 2.41% quarter-on-quarter [2] - The overall revenue for 2024 was 3.777 billion yuan, with a year-on-year growth rate of 7.4%. The attributable net profit was 1.185 billion yuan, reflecting a 13.1% increase compared to 2023 [6] Business Segments - The coalbed methane extraction and sales business is the primary profit source, with a gross profit contribution of 1.608 billion yuan, a 12.02% increase year-on-year, and a gross margin of 55.29% [3] - The average selling price of coalbed methane in the Ma Bi block increased by 7.31% to 2.35 yuan per cubic meter, while the overall average selling price for the company was 2.20 yuan per cubic meter, up 2.33% year-on-year [4] Production and Capacity - The company achieved a coalbed methane production of 2.005 billion cubic meters in 2024, a 17.66% increase year-on-year. The Ma Bi block saw a production increase of 56.82%, reaching approximately 897 million cubic meters [3][5] - The report projects that the Ma Bi block could reach a production capacity of over 2.5 billion cubic meters annually by 2025-2027, with significant growth expected in the coming years [5] Future Outlook - The company is expected to maintain long-term high growth in natural gas production, supported by rich reserves in various blocks, including the Ma Bi and Xinjiang Kashgar North blocks. The report forecasts attributable net profits of 1.371 billion yuan, 1.507 billion yuan, and 1.629 billion yuan for 2025, 2026, and 2027, respectively [5][6]