Jiangxi Jovo Energy Co.Ltd(605090) (605090)
Event: the company issued the announcement on signing a cooperation agreement with Ju Rightway Holdings Co.Ltd(600321) Co., Ltd. for the joint development of hydrogen energy. Both parties intend to establish a joint venture to carry out cooperation in the development of hydrogen energy industry and make full use of the by-product hydrogen resources of Ju Zhengyuan polypropylene project.
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Juzhengyuan, the partner of Jiangxi Jovo Energy Co.Ltd(605090) , is the holding subsidiary of Guangwu holding group, a large state-owned enterprise in Guangdong Province. It invested and constructed a 1.2 million T / a propane dehydrogenation to high-performance polypropylene project in Lisha Island, Dongguan City. In the form of a joint venture, Make full use of the by-product hydrogen resources of juzhengyuan PDH plant (25000 tons / year in phase I and 25000 tons / year in phase II) to carry out cooperation in the development of hydrogen energy industry. Jiangxi Jovo Energy Co.Ltd(605090) the wharf storage base in Lisha Island, Dongguan is close to the implementation site of juzhengyuan polypropylene project, which has strong synergy and is conducive to the smooth development and implementation of the cooperation project. This cooperation is conducive to consolidating the building of the company The strategic positioning of “clean energy service provider with value and creativity” will enhance the company’s influence and competitiveness in the hydrogen energy market.
The company has obvious inherent advantages in entering the hydrogen energy field, and its development future is expected: the company is a large comprehensive clean energy service provider focusing on the midstream and terminal fields of the gas industry in China, The main products include liquefied natural gas (LNG) and liquefied petroleum gas (LPG), etc. the company has obvious inherent advantages in participating in hydrogen energy industry and has resource and cost advantages in hydrogen production from fossil energy. At present, the company’s preliminarily determined hydrogen energy layout direction includes the development and introduction of hydrogen production and purification technology, the purification of by-product hydrogen of PDH unit, hydrogen production from natural gas reforming, hydrogen production from electrolytic water, etc. the company’s participation in hydrogen energy industry has good development prospects and can be used in the future Period.
The hydrogen energy policy support of Guangdong Province has been strengthened, and the company has benefited significantly: Guangdong urban agglomeration is one of the first fuel cell vehicle demonstration urban agglomerations in China, and the policies supporting the development of hydrogen energy in the province have been issued one after another. Recently, The Guangdong Provincial Development and Reform Commission issued the action plan for accelerating the construction of fuel cell vehicle demonstration urban agglomeration in Guangdong Province (2021-2025) Draft for comments. By the end of the demonstration period, Guangdong will supply more than 100000 tons of hydrogen annually, build about 200 hydrogen refueling stations, reduce the selling price of vehicle hydrogen terminal to less than 30 yuan / kg, and improve the industrial chain of the demonstration city cluster. The accelerated layout of hydrogen energy in Guangdong is expected to significantly increase the demand for natural gas. As the main large LNG supplier in Guangdong, the company is expected to significantly benefit from the increase of natural gas demand in Guangdong Province by virtue of its location and resource advantages, and its future performance increment is considerable.
Profit forecast, valuation and rating: we maintain the profit forecast of the company. It is estimated that the net profit of the company from 2021 to 2023 will be RMB 1.038 billion, 1.403 billion and 1.818 billion respectively, and the corresponding EPS will be RMB 2.34, 3.17 and 4.10/share respectively, maintaining the “buy” rating.
Risk tips: macroeconomic fluctuation risk, RMB / US dollar exchange rate risk, upstream purchase price fluctuation risk, secondary new share price fluctuation risk.
