JINHONG GAS(SH:688106)2024-04-29 07:42Company 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 solutions for gas research, production, sales, and services [2]. - The company adheres to a vertical and horizontal development strategy, focusing on technology to become a leading comprehensive gas service provider [2]. Financial Performance - In Q1 2024, the company achieved a revenue of CNY 589 million, representing a year-on-year growth of 13.74%. The net profit attributable to shareholders was CNY 76 million, up by 26.68% compared to the same period last year [3]. - As of March 31, 2024, total assets reached CNY 6.803 billion, reflecting a growth of 9.03% from the end of the previous year [3]. Revenue Breakdown - In Q1 2024, revenue by product category was as follows: - Specialty gases: 44.59% - Bulk gases: 35.85% - On-site gas production and rental: 10.48% - Fuel gas: 9.08% [3]. - Revenue growth sources included: - Specialty gases: approximately 13% increase - Bulk gases: approximately 7% increase - On-site gas production and rental: approximately 35% increase - Fuel gas: approximately 13% increase [3]. Market and Project Updates - The company is progressing with several projects, including: - The Shanxi Province project is on schedule and expected to contribute stable revenue starting May 2024 [5]. - The company has secured contracts for gas supply projects in Beijing, Guangdong, and Xian, which have already contributed to revenue in Q1 2024 [5]. - The company anticipates significant growth in helium sales this year, supported by low-cost gas sources [6]. Challenges and Market Trends - The gross profit margin has declined due to fluctuations in product margins, particularly for argon and helium, influenced by raw material price increases and market trends [4]. - The prices of bulk liquid raw materials are experiencing volatility, with a general expectation of price increases during summer, contingent on downstream demand and supply-side maintenance [7]. Regional Market Performance - In the Hunan region, post-acquisition adjustments have improved customer structure and business models, leading to a noticeable increase in market share despite slower performance due to the heavy machinery industry's cyclical nature [7].