Hangyang (002430): The gas version of the winning gas project continues to expand
The company won the bid for Yangxin Hongsheng Copper Gas Project. The industrial gas business scale is expected to continue to expand. The company issued Announcement No. 2019-069. The company received the “Notification of Winning Bid” from Yangxin Hongsheng Copper Co., Ltd. and determined the company to be “400kt / a The high-purity halogen copper clean production of oxygen, nitrogen and other industrial gas supply and service projects.
The project adopts the BOO gas supply cooperation model. The company is responsible for investing in the construction of a new air separation unit of not less than 20000m3 / h (O2) + a set of not less than 35000m3 / h (O2) to operate and provide gas supply services.
We believe that the successful bid of this project is beneficial to the further development of the company’s industrial gas business.
The company’s industrial gas business has expanded steadily and has abundant cash flow. We are optimistic about the company’s medium- and long-term development potential and maintain its profit forecast. Is it expected that 2019?
EPS is 0 in 2021.
11 yuan, maintain “Buy” rating.
The industrial gas business expansion strategy has been implemented steadily. The company ‘s mid-to-long-term growth and expectations are reportedly disclosed in the company’s 2018 semi-annual report. The company ‘s overall installed capacity exceeded 1.1 million cubic meters per hour. Considering the second-stage ventilation of the Shenglong gas project in 2019, it is estimated that2019年 年11月份公司整体装机量为118万立方米/小时。
We believe that the operation of newly-built projects will promote the steady growth of gas business revenue, and 杭州桑拿网 effectively hedge the disruption of revenue and profit from changes in retail prices, improve the stability of the business counter-cyclical, and the company’s medium- and long-term growth scale.
The name was changed to highlight the “Hangyang” brand advantage, which is conducive to expanding the company’s influence. It is reported that the number of the announcement is 2019-066. The company intends to change the Chinese name from “Hangzhou Hangyang Co., Ltd.” to “Hangzhou Oxygen Making Machinery Group Co., Ltd.”At the same time, the controlling shareholder was renamed from “Hangzhou Oxygen Making Machinery Group Co., Ltd.” to “Hangzhou Oxygen Holding Co., Ltd.”.
We believe that since Hangzhou Oxygen Co., Ltd. was established as a separate restructuring of Hangzhou Oxygen Concentrator Group Co., Ltd., it has inherited all the business related to air separation (also known as oxygen generator) and cryogenic equipment from Hangzhou Oxygen Concentrator Group Co., Ltd.Therefore, this name change clearly clarifies the related business division between the listed company and the group, which will help the listed company to inherit the development history of the brand “Hangyang” in the field of air separation and low temperature equipment, and further leverage the brand advantages of “Hangyang”.
The domestic industrial gas leader is optimistic about the medium and long-term growth. It maintains a “buy” rating for the company’s gas business strategy. The centralized gas supply project reserve accumulation, business stability continues to improve, cash flow is plentiful, and medium- and long-term growth potential.
The gas business is expected to grow steadily, in line with our expectations. We maintain our profit forecast.
The net profit attributable to the mother for 21 years was 7, respectively.
700 million, corresponding PE is 16/13 / 11x.
Comparable companies have an average PE of 18x in 2019. Considering the growth of the company’s leader and medium- and long-term growth, maintain the target PE20 of 2019?
23x, corresponding to 14.
Risk reminders: downside risks of rising retail gas prices; earnings risks from shareholder reductions; unexpected downside in downstream industries such as chemicals and metallurgy; the advancement of modern coal chemical projects has fallen short of expectations; emerging downstream developments such as semiconductors have fallen behind expectations