HANGYANG LIMITED(002430) 浙商证券·2024-11-28 12:23Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The report highlights the acquisition of Hangzhou Yingde Gas Company, which has increased its registered capital from 100 million RMB to 18.75 billion RMB, indicating significant progress in the company's growth strategy [2][7] - The industrial gas market in China is expected to grow, with a projected compound annual growth rate (CAGR) of 6-8% from 2021 to 2025, driven by increasing demand and a rising outsourcing ratio [2] - The company aims to enhance its market share, with expectations that its share in the third-party gas supply market will increase from 9% in 2021 to 30-40% in the future [2] - The report forecasts a substantial increase in the company's profitability, with net profits projected to reach 1.03 billion RMB in 2024, 1.34 billion RMB in 2025, and 1.62 billion RMB in 2026, reflecting growth rates of -15%, 30%, and 21% respectively [2][3] Financial Summary - The company's revenue is expected to grow from 13.31 billion RMB in 2023 to 19.74 billion RMB in 2026, with annual growth rates of 4%, 6%, 20%, and 16% respectively [3][18] - The projected earnings per share (EPS) are 1.24 RMB for 2023, 1.04 RMB for 2024, 1.36 RMB for 2025, and 1.65 RMB for 2026 [3][18] - The price-to-earnings (P/E) ratio is forecasted to be 19 for 2024, 23 for 2025, and 18 for 2026, indicating a favorable valuation trend [3][18] Growth Path - The company is positioned to benefit from the ongoing demand growth in the industrial gas sector, with a focus on enhancing its product mix and profitability through the expansion of its gas business [2][14] - The report emphasizes the importance of domestic substitution trends, which are expected to bolster the company's market position and operational scale significantly by 2025 [14]