Event: Hengtong shares released 2022 semi-annual report. In the first half of the year, the company realized revenue of 2.39 billion yuan, year-on-year-27.4%, net profit of 30 million yuan, year-on-year-62.1%, and non-return-to-mother 20 million yuan,-69.8%. From a business point of view, LNG (LPG) gas sales revenue is 1.76 billion yuan, accounting for 73.5%, compared with the previous year-38.4%; cargo transportation revenue is 590 million yuan, accounting for 24.8%, + 42.7% compared with the previous year. Huaheng Energy, the main subsidiary of the company's LNG business, realized operating income of 1.68 billion yuan,-40.6% year-on-year, and net profit of 6.514 million yuan,-86.8% compared with the same period last year.
Under the influence of geopolitics, natural gas prices remain high. Under the influence of geopolitics, the European region faces a serious tightening of energy supply, and European natural gas prices soar. The natural gas price gap between Europe and Asia is gradually widening, and the spot spot in Northeast Asia is catching up. Domestic gas is supported by this, and the price also remains high. In the first half of the year, the average price of China's LNG market was 6599.7 yuan / ton, an increase of 2630.2 yuan / ton over the same period last year, an increase of 66.3%. The domestic natural gas supply is insufficient, the price is high, the downstream demand is weak, and the company's operating income has fallen sharply.
Epidemic prevention and control is improving on the whole, and logistics and transportation withstand the pressure. In the first half of the year, the total amount of social logistics in the country was about 160 trillion yuan, an increase of 3.1 percent over the same period last year at comparable prices, or 0.1 percentage points higher than that from January to May. With the overall improvement of the domestic epidemic prevention and control situation and the steady growth policy, industrial production has gradually stabilized and rebounded. On the whole, the total logistics volume of industrial products increased by 3.4% in the first half of the year compared with the same period last year, maintaining a steady growth rate, and the growth rate needs to be further recovered. The company's logistics and transportation withstood the pressure, and the revenue from cargo transportation was 590 million yuan, an increase of 42.7% over the previous year.
LNG trade industry leader, large-scale advantage is obvious. The company takes the domestic LNG receiving port as the resource center, through the integration of transportation and trade, to achieve multi-point layout, gradually expand the market radiation scale, to achieve full coverage of major natural gas consumption areas such as North China, East China, South China, etc.; it has more than 360 LNG transport vehicles, with significant advantages in transport resources; actively expand the network layout of LNG filling stations and build LNG filling stations in important road transport channels in the province. The coverage of the company's LNG trade business to national customers and the large-scale construction of LNG filling stations have built a large-scale cost advantage for the company's procurement and logistics.
Profit forecast and investment advice: although the company's performance is affected by the macro environment in 2022, we are still optimistic about the long-term development of LNG business and logistics and transportation business. As a leading company in the domestic LNG trade industry, the company still has great potential for development. It is estimated that the annual return net profit of the company in 2022-23-24 is 1.2,1.8 and 230 million yuan respectively, and the BPS of net assets per share is 7.2,7.6,7.9 yuan respectively. Cover for the first time, giving a "hold" rating.
Risk hints: macroeconomic fluctuation risk, LNG price fluctuation risk, epidemic repeated risk and so on.
