Core Viewpoint - The Chinese electronic bulk gas industry is undergoing a critical transformation from technology catch-up to localized breakthroughs, with a continuously expanding market size and accelerated domestic substitution process. The market size of China's electronic bulk gas is expected to reach approximately 11.2 billion yuan in 2024, representing a year-on-year growth of 8.74% [1][16]. Industry Overview - The term "electronic gas" broadly refers to gases used in electronic industrial production, divided into electronic bulk gases and electronic specialty gases, which are crucial raw materials in semiconductor manufacturing [2]. - Electronic bulk gases include nitrogen, helium, oxygen, hydrogen, and carbon dioxide, with significant usage in semiconductor production processes [4][6]. Industry Development History - The development of China's electronic bulk gas industry has gone through four stages: 1. The budding stage (1950-1980) where reliance on imported equipment limited domestic production capabilities. 2. The initiation stage (1981-1999) marked by the entry of international gas giants bringing advanced technology. 3. The development stage (2000-2015) where domestic companies began to reduce reliance on imports and the demand for electronic bulk gases surged due to the growth of the semiconductor and photovoltaic industries. 4. The maturity stage (2016-present) where domestic companies have mastered ultra-pure gas purification technologies, meeting advanced process requirements [7][8]. Market Size - The electronic gas market in China is projected to reach approximately 20.3 billion yuan in 2024, with a year-on-year growth of 7.98%. The rapid expansion of the domestic semiconductor industry and continuous growth in photovoltaic installations are driving this demand [14][16]. Key Companies - **Guangzhou Guanggang Gas**: A leading domestic electronic bulk gas service provider, known for its "Super-N" series ultra-pure nitrogen production technology, achieving ppb-level purity [21]. - **Jinhong Gas**: Engaged in gas research, production, and sales, recognized as a national high-tech enterprise, with a focus on ultra-pure gases [23]. - **Linde Gas, Air Liquide, and Air Products**: Global industrial gas giants dominating over 70% of the high-end market share, leveraging technology barriers and long-term customer contracts [18][19]. Industry Development Trends 1. **Technological Innovation and Domestic Substitution**: The industry is experiencing dual drivers of technological innovation and domestic substitution, with companies increasing R&D investments to meet high purity and stability requirements [25]. 2. **Industry Chain Integration and Model Innovation**: Companies are integrating vertically and innovating business models, exploring on-site gas production and digital gas management systems to enhance competitiveness [26]. 3. **Diversified Market Demand and Global Layout**: The industry faces opportunities from diversified market demands and accelerated globalization, with companies expanding internationally to meet both domestic and foreign needs [27].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has passed its profit low point, and as a leading player in electronic bulk gases, it is expected to accelerate growth [4] - The revenue for 2024 is projected to be 2.098 billion yuan, representing a year-on-year growth of 14.33%, while the net profit attributable to the parent company is expected to decline by 24.75% to 240 million yuan [4] - The company has secured significant projects, validating its competitive edge in the electronic bulk gas market [4] - Profit margins are anticipated to recover as helium prices stabilize and projects ramp up [4] - Future growth opportunities exist with multiple potential large projects in the pipeline, particularly in the context of increasing demand for advanced semiconductor processes and storage [4] Financial Summary - Total revenue for 2023 is reported at 1.835 billion yuan, with a year-on-year growth of 19.2% [3] - Projected revenues for 2024, 2025, and 2026 are 2.098 billion yuan, 2.586 billion yuan, and 3.177 billion yuan, respectively, with corresponding growth rates of 14.3%, 23.2%, and 22.9% [3] - The net profit for 2023 is 320 million yuan, with projections of 240 million yuan for 2024, 372 million yuan for 2025, and 527 million yuan for 2026, reflecting growth rates of 35.7%, -24.8%, 54.6%, and 41.7% respectively [3] - The gross margin is expected to fluctuate, with figures of 35.1% for 2023, 28.2% for 2024, 30.8% for 2025, and 33.1% for 2026 [3] - The price-to-earnings (PE) ratio is projected to decrease from 59.0 in 2024 to 27.0 in 2026 [3]