20240328-群益证券-金宏气体-688106.SH-特气占比提高_新签现场制气项目_3页_441kb

Jinhong Gas (688106SZ) is a chemical industry company with a strong focus on gases, including special gases and bulk gases. The 2024 stock report by Company Update China Research Dept, dated March 28, 2024, highlights key financials and growth drivers.

Key Financials

• Current A-share price: 18.66 yuan, target price: 24 yuan.
• 2023 annual report: Revenue reached 24.27 billion yuan (+23.4% YoY), net profit 31.5 billion yuan (+374.8% YoY). Q4 2023 showed revenue growth of +22.1% YoY but a decline in profit due to higher costs.
• Dividend: Proposed 0.35 yuan per share, yielding about 17.6%, boosting investor returns.

Business Developments

• Growth in special gases: This segment expanded significantly, accounting for 46.3% of revenue in 2023, up from previous years, with improved gross margins. New products like ultra-pure ammonia and nitrous oxide are supplied to major clients such as semiconductor companies, and expansion projects in China and Vietnam are underway.
• Bulk gases and on-site gas production: Bulk gases remained stable, while on-site gas projects saw rapid growth, with several new contracts signed (e.g., a 2.4 billion yuan deal for an air separation plant expected to start in 2025, adding stable revenue).

Future Outlook and Recommendations

• The report issues a "Buy" recommendation, noting that special gas markets are a key growth driver and multi-segment development positions the company as a comprehensive gas industry leader.
• Revised earnings estimates: For 2024-2026, net profit is projected at 41.5 billion yuan (+32% YoY), 51.9 billion yuan (+25% YoY), and 63.5 billion yuan (+23% YoY), with a corresponding PE of 22, 18, and 14 times, considered undervalued.
• These projections stem from continued project execution and diversification.

Risk Factors

• Potential risks include product price volatility and delays in new project completions, which could impact financial performance.

Overall, the company demonstrates strong financial performance and strategic growth, supporting the "Buy" recommendation despite short-term challenges.