occurrences
The company issued the “Cash Dividend Plan for the Next Three Years (2024-2026)” and the “2024 Restricted Stock and Stock Option Incentive Plan (Draft)”.
Clarify the 2024-2026 cash dividend plan
For the next three years (2024-2026), the company's cash dividend methods include fixed cash dividends and special cash dividends.
① Fixed cash dividends: In 2024-2026, the company's fixed cash dividends were 7.5/8.5 billion yuan, respectively. ② Special cash dividend: Based on net profit due to mother in 2023, if net profit to mother continues to grow for three consecutive years from 2024-2026, and the year-on-year growth rate exceeds 18%, the company will launch a special cash dividend. The minimum annual cash dividend amount is 20 million yuan.
The company's dividend rate calculation for the next three years: if calculated only based on fixed cash dividends, the dividend rate for 2024-2026 will reach 4.5%/5.1%/6.1%, respectively; if annual special cash dividends are also taken into account (calculated according to the lower limit of 20 million), the dividend rate for 24-26 will reach 4.7%/5.3%/6.2% respectively (calculated based on the closing price as of June 5, 2024).
A new version of the equity incentive plan was introduced, demonstrating the company's confidence in development
While the company is undertaking the first three-year development plan (2021-2024) and the second three-year development plan (2025-2027) after listing, the company announced the “2024 Restricted Stock and Stock Option Incentive Plan (Draft)”, which plans to grant equity incentives to 137 people and to grant 5.657 million shares/share of equity, accounting for 0.8938% of the company's total share capital.
Judging from the company-level performance assessment conditions, it is stipulated that net profit due to mother for 2024-2026 shall not be less than 15/17.25/1,984 billion yuan, respectively (a compound annualized growth rate of 15% for the three years 2024-2026).
The company's “one main, two wings” pattern is gradually becoming clear
The company's main business includes clean energy business, energy operations and energy services, and specialty gas business. The clean energy business accounted for about 78% of gross profit in '23 and is the core business of the company. A special combustion special gas supporting project at the Hainan commercial space launch site was successfully signed in 23. In 2023, helium production reached 310,000 square meters, accounting for 10% of domestic helium. The business layout with energy services and specialty gases as the two wings gradually became clear.
Profit forecast and valuation: We expect the company to achieve net profit of 15.5/18.1/2.02 billion yuan in 2024-2026 (year-on-year growth rates of 18.5%/16.8%/11.7%, respectively), corresponding PE of 11.7/10.1/9x, respectively, to maintain the “gain” rating.
Risk warning: risks such as fluctuations in international gas prices exceeding expectations, downstream demand recovery falling short of expectations, progress of specialty gas projects falling short of expectations, and failure to advance business as expected