公司多业务共同发力，24H1 营收创历史同期新高受益于公司新产品导入、新项目投产以及新客户开拓，公司24H1 整体营收稳步增长。分产品看，公司特种气体营收为5.09 亿元（占比41.35%），同比增长2.9%，其中集成电路客户营收同比增长32.15%，并新增导入12 家半导体客户；大宗气体营收为4.43 亿元（占比35.98%），同比增长7.0%，主要受益于零售网点不断增加及新区域持续导入产品；现场制气及租金营收为1.32 亿元（占比10.72%），占比首次超过清洁煤气业务，考虑到公司23年下半年以来持续签订中大型现场制气项目，我们预计该业务占比有望继续提升。Incidents:
The company released its 2024 mid-year report, achieving revenue of 1.232 billion yuan (yoy+ 8.65%) and net profit of 0.16 billion yuan (yoy -1.15%) in the first half of the year, of which Q2 achieved revenue of 0.643 billion yuan (yoy +4.36%) in a single quarter and net profit of 0.084 billion yuan (-17.69%) to mother. In addition, the company plans to distribute a cash dividend of 1.50 yuan (tax included) for every 10 shares to all shareholders.
Comment:
The company's multiple businesses worked together. 24H1 revenue reached a record high during the same period. Benefiting from the company's new product introduction, new project commissioning, and new customer development, the company's 24H1 overall revenue grew steadily. By product, the company's specialty gas revenue was 0.509 billion yuan (41.35%), up 2.9% year on year, of which integrated circuit customer revenue increased 32.15% year on year and 12 new semiconductor customers were introduced; bulk gas revenue was 0.443 billion yuan (accounting for 35.98%), up 7.0% year on year, mainly benefiting from the continuous increase in retail outlets and the continuous introduction of products in new regions; on-site gas production and rental revenue was 0.132 billion yuan (accounting for 10.72%), accounting for more than the first time In the clean gas business, considering that the company has continued to sign medium and large-scale on-site gas production projects since the second half of '23, we expect the share of this business to continue to increase.
The profitability of product price reductions has declined. Steady cash flow and cash dividends show that the overall gross margin of the 24H1 business quality company was 34.28%, a year-on-year decrease of 4.87 pct, mainly due to the decline in the prices of some products. Specifically, the gross margins for specialty gases, bulk gases, on-site gas production, and rent were 31.55%, 31.99%, and 64.36%, respectively. Compared with the 23 annual report (the company did not disclose the 23 annual report's gross profit margin for the 23 annual report), there were changes of -8.81, -2.21, and +4.52 pcts, respectively. The company's 24H1 net margin was 13.58%, a decrease of 1.52 pcts. Furthermore, the company continued to strengthen inventory and accounts receivable management, achieving a cash flow of 0.204 billion yuan from operating activities, an increase of 4.62% over the previous year, and the net operating cash flow/net profit remained above 1 for many years. The company plans to pay a mid-term dividend in 2024, with a cash dividend of 1.50 yuan (tax included) for every 10 shares. Cash dividends account for 44.94% of the mother's net profit. Steady cash flow supports higher cash dividends, demonstrating the continued high-quality development of the company's operations.
The vertical and horizontal development strategy consolidates the foundation of growth and enhances the company's investment value 1) The company strictly adheres to the Zongheng development strategy. In recent years, it has continued to advance steadily along the development path of “bulk retail - electronic specialty gas - electronic bulk - on-site gas generation”, forming a multi-business collaborative development situation. Relying on one-stop gas supply service capabilities, it has the industrial foundation to target overseas gas leaders; 2) The company continues to increase investor returns. On the one hand, the company plans to implement an interim dividend for 2024. On the other hand, the company will cancel some of the repurchased shares and reduce the registered capital accordingly (1.1648% of the current total share capital). 3) Mr. Jin Xianghua, the actual controller of the company, and Mr. Zhu Genlin, the concerted actor of Ms. Jin Jianping, increased their holdings of the company's shares by 569,165 shares from June 24 to July 3, '24, showing recognition of the company's long-term investment value.
Profit forecasting and valuation
The company is a comprehensive domestic gas supplier. Affected by the decline in the prices of some products, we slightly lowered the company's net profit from 24-26 to 3.67, 4.60, and 588 million yuan. The year-on-year growth rates were 16.53%, 25.25%, and 27.95%, respectively, corresponding to the current stock price PE 23, 18, and 14 times, respectively. As the company's new construction projects gradually reach production and continue to break through in various businesses such as large-scale electronics and large-scale on-site gas generation, the company will grow significantly in the future and maintain a “buy” rating.
Risk warning
Risk of fluctuations in raw material prices, management and internal control risks due to scale expansion, and production safety risks
