The company is a comprehensive supplier specializing in integrated gas solutions, with a complete range of gases. The company's main products are divided into three categories: (1) special gases: ultra-pure ammonia, high-purity nitrous oxide, ethyl orthosilicate, high-purity carbon dioxide, high-purity hydrogen, etc.; (2) bulk gases: oxygen, nitrogen, argon, carbon dioxide, acetylene, etc.; (3) gas such as natural gas and liquefied petroleum gas. The company's products are mainly used in integrated circuits, LCD panels, LED, optical fiber communication, photovoltaics, high-end equipment manufacturing and other industries. Products such as ultra-pure ammonia and high-purity nitrous oxide developed independently by the company have been officially supplied to well-known semiconductor customers such as SMIC, Hynix, and Magiguang.
The company's operating income and net profit after deduction both achieved rapid growth in 2023. The 2020-2024Q1 company achieved operating income of 12.43, 17.41, 19.67, 24.27, and 589 million yuan, up 7.13%, 40.05%, 12.97%, 23.40%, 13.74% year on year; realized net profit of 1.97, 1.67, 2.29, 3.15, and 76 billion yuan, up 11.43%, -15.34%, 37.48%, 26.68% year on year; net profit not returned to mother 1.65, 1.30, 1.91, 1.91, 1.44, 2.87, 50 billion yuan, year-on-year changes of -3.41%, -21.11%, 46.99%, 49.90%, and -9.12%. In 2023, the company's specialty gas business revenue increased by 46.50% year-on-year, and its share of main business revenue increased from 39.23% to 46.34%.
The electronic bulk gas carrier project is progressing smoothly, and the continuous expansion of gas production projects enhances competitive advantage. In 2023, the company obtained three electronic bulk gas projects, including Wuxi Huarun Shanghua, Suzhou Longchi, and Xi'an Weiguang Technology. In addition, the Guangdong Xinyue Energy Project was officially mass-produced on August 1, 2023; the Meishan Jinhong Ultra Pure Ammonia Project was tested in July 2023, and the Vietnam Jinhong Ultra Pure Ammonia Project is in the process of industrialization; the company actively built its own air separation project, and the Suxiang Jin Hongrun Air Separation Project was successfully capped in June. After production, the Meishan Hongjin Hydrogen Project was tested in July 2023, the Zhuzhou Hualong hydrogen project has already It successfully capped in June 2023.
Profit forecasting and investment ratings. We estimate that the company's net profit for 2024-2026 will be 401 million yuan, 485 million yuan, 626 million yuan, and EPS of 0.82 yuan, 0.99 yuan, and 1.28 yuan. Referring to companies in the same industry, we believe that the reasonable valuation range is 30-35 times PE in 2024, and the reasonable value range is 24.6-28.7 yuan. The first coverage is superior to the market rating.
Risk warning. Risk of rapid rise in raw material prices; risk of production expansion projects falling short of expectations; risk of falling product prices due to increased competition.