Investment Rating - The report maintains a "Buy" rating for Jiufeng Energy [1][4][6] Core Views - Jiufeng Energy's revenue for Q1-Q3 2025 was 15.61 billion yuan, a year-on-year decrease of 8.5%, with a net profit attributable to shareholders of 1.24 billion yuan, down 19.1% year-on-year [4][10] - The company plans to invest up to 3.455 billion yuan in the second phase of the Xinjiang Qinghua coal-to-gas demonstration project, which is expected to produce 4 billion cubic meters annually [4][6] - The LNG and LPG segments show resilience despite temporary disruptions affecting profits, with LNG gross margins improving and LPG sales expected to rise in Q4 [4][6] Summary by Sections Financial Performance - Jiufeng Energy's Q3 2025 revenue was 5.18 billion yuan, a decrease of 10.4% year-on-year, while net profit was 380 million yuan, down 11.3% year-on-year [4][11] - The company forecasts net profits of 1.6 billion, 1.81 billion, and 2.09 billion yuan for 2025-2027, with corresponding P/E ratios of 14.2, 12.6, and 10.9 [4][6] Project Developments - The coal-to-gas project is expected to enhance the company's upstream resource layout and strengthen its integrated energy supply capabilities [4][6] - The project is backed by a mature industrial base in Xinjiang, with necessary approvals and a professional operational team in place [4][6] Market Strategy - The second phase of the coal-to-gas project will optimize the company's gas source structure and expand its market reach, particularly in the northwest and along the West-to-East Gas Transmission pipeline [4][6] - The company aims to achieve a compound annual growth rate of 15% by leveraging synergies between its various projects and expanding its clean energy service offerings [4][6]

Core Viewpoint - Shenzhen Gas Group Co., Ltd. is issuing convertible bonds to unspecified objects, maintaining a stable credit rating of AAA, supported by strong regional market position and backing from the Shenzhen State-owned Assets Supervision and Administration Commission [4][6][11]. Financial Overview - Total assets reached 442.70 billion in 2023, with total liabilities at 269.98 billion, and total debt at 165.65 billion [7]. - Operating revenue for 2023 was 309.29 billion, with a net profit of 16.42 billion [7]. - The EBITDA for 2023 was 37.53 billion, with a cash flow from operating activities of 25.43 billion [7]. Business Performance - The company has a strong regional market position as the sole operator of pipeline gas in Shenzhen, with gas sales volume increasing by 1.27% in 2024 [13][14]. - The gas procurement volume increased by 7.84% in 2024, with a procurement average price decrease of 7.40% [14]. - The company’s gas sales revenue showed a slight increase in 2024, despite a decline in liquid petroleum gas sales due to the "bottle-to-pipe" project [14][24]. Industry Context - The natural gas market is expected to maintain a stable outlook in 2024, with a balanced supply and demand situation supporting profitability for urban gas companies [10][11]. - The photovoltaic industry is facing challenges with supply-demand imbalances, leading to price declines and increased competition, impacting the performance of the company's subsidiary, Swick [10][19]. Strategic Direction - The company aims to optimize its layout and innovate, focusing on a dual business model of gas and clean energy, with plans for high-quality transformation and growth [12][21]. - The company is actively expanding its gas wholesale business and has plans for new projects in the clean energy sector [15][21]. Credit Rating and Monitoring - The credit rating of AAA is maintained based on the company's strong market position and support from the Shenzhen State-owned Assets Supervision and Administration Commission [4][5]. - Regular monitoring and tracking of the company's credit status will continue throughout the bond's lifespan [3][4].