JINHONG GAS(SH:688106)2024-05-20 07:36Company Overview - Jin Hong Gas Co., Ltd. was established in 1999 and listed on the Sci-Tech Innovation Board in 2020 with stock code 688106. It specializes in integrated gas solutions, focusing on research, production, sales, and services [2]. - The company aims to be a leader in the gas industry by providing innovative and sustainable gas solutions, driven by technology [2]. Financial Performance - In Q1 2024, the company achieved a revenue of CNY 589 million, representing a year-on-year growth of 13.74% [2]. - The net profit attributable to shareholders was CNY 76 million, marking a year-on-year increase of 26.68% [2]. - As of March 31, 2024, total assets amounted to CNY 6.803 billion, reflecting a growth of 9.03% compared to the end of the previous year [2]. Project Insights - The gross margin for large on-site gas production projects varies by project and aligns with market conditions [3]. - The Wuxi China Resources project is the first large-scale Fab factory replacement project in China, with the company recognized for its comprehensive capabilities [3]. - The Su Xiang air separation project will increase the self-sufficiency ratio of raw materials, enhancing price control [4]. Product Development - The company is introducing several new specialty gases, including ultra-pure ammonia and nitrous oxide, with plans for trial production by the end of the year [4]. - The Vietnam ultra-pure ammonia project is under construction, expected to begin commissioning by the end of July 2024 [4]. Market Dynamics - The pricing of bulk liquid raw materials is subject to fluctuations based on supply and demand, with some prices recovering due to maintenance and operational rates of surrounding air separation units [5]. - The net profit margin for bulk gases in the Suzhou region is favorable due to a strong industrial structure and customer density, along with effective market integration [5]. Accounts Receivable - Accounts receivable increased in Q1 2024 due to a 13.74% rise in revenue, alongside longer payment cycles from semiconductor and overseas clients [5]. Future Outlook - The company anticipates growth in 2024 from ongoing project completions, stable contributions from electronic bulk gases, and potential in international trade [5].