Jovo Energy(SH:605090)2026-01-13 01:10Summary of Jiufeng Energy Conference Call Company Overview - Jiufeng Energy is a core supplier for the Hainan Commercial Space Launch Site and is actively expanding to other bases, collaborating with multiple commercial rocket companies to provide a comprehensive range of special fuels and gases services, including high-purity liquid methane, liquid hydrogen, oxygen, nitrogen, and helium [2][3] Key Points and Arguments Market Position and Competitive Advantages - Jiufeng Energy has significant economic and cost advantages in the special fuels and gases supply sector, primarily reflected in its high market share and large-scale helium assets, achieving comprehensive coverage of key gases at the Hainan launch site [2][4] - The company has established itself as a qualified supplier for the Hainan Commercial Space Launch Site since November 2023, with plans to expand to other locations such as Shandong and Gansu [3] Growth Potential in Commercial Space Sector - With advancements in reusable technology, the value per launch for Jiufeng Energy is expected to increase by approximately 30% after adopting liquid methane processes, with current single-launch values estimated at 3-4 million RMB [6][12] - The commercial space sector is experiencing strong demand for rocket launches, driven by satellite launch plans from companies like Xingwang, Yuanxin, and Blue Arrow, indicating a vast market potential [8][9] Valuation and Future Profitability - The current market valuation of Jiufeng Energy's commercial space business is around 5 billion RMB, with a projected P/E ratio of less than 10 based on future profit estimates from 300 launches, suggesting significant undervaluation [7] - The company anticipates achieving a profit of 3.2 to 3.4 billion RMB by 2028, driven by its core business and the expansion of its helium and special gas supply capabilities [17] Cost Reduction and Market Dynamics - Key directions for reducing rocket launch costs include the development of reusable technology and high-capacity rockets, which are critical in the competitive landscape between China and the U.S. [10] - The demand for special fuels and gases remains rigid, with expectations of increased demand as payloads rise, despite overall marginal costs decreasing with more reusable launches [11] Future Projects and Financial Projections - Jiufeng Energy plans to invest 300 million RMB in expanding the Hainan Commercial Space Phase II project to enhance supply capabilities [6] - The company projects that by 2028, its new projects will contribute profits of 1.2 to 1.4 billion RMB, with a rapid ramp-up expected due to the maturity of coal-to-gas technology [16] Additional Important Insights - Jiufeng Energy's integrated layout and overseas gas source cost optimization are expected to enhance profitability, with a target of 15% annual growth from 2025 to 2027 [15] - The company has a strong resource endowment and matching capabilities, allowing it to provide competitive pricing and stable supply guarantees in the special fuels and gases market [14] - The long-term outlook for the commercial space sector includes increasing satellite recovery and replacement, space computing, and lunar missions, further expanding the rocket launch market [9]