\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 803 Enn Natural Gas Co.Ltd(600803) )
Event: on April 6, 2022, the company announced the signing of major contracts for daily operation. Ennlng, a subsidiary, signed a LNG purchase contract with Rio Grande LNG. It is expected to purchase 1.5 million tons of LNG from rglng every year for a period of 20 years from 2026 at the earliest, and the price is linked to the benchmark price of Henry hub.
Intensive signing of long-term agreements with overseas LNG suppliers to lock in low-cost gas sources: Recently, the company has signed long-term agreements with overseas LNG suppliers. In October 2021, the company signed a 13 year long-term LNG purchase and sale agreement with chenille energy, the world's second largest LNG liquefaction plant operator, to purchase 900000 tons of LNG annually by offshore delivery from July 2022; In January 2022, the company signed an 11 year long-term LNG agreement with novatech of Russia to purchase about Shanghai Pudong Development Bank Co.Ltd(600000) tons of LNG per year by means of onshore delivery; In March 2022, Enn Natural Gas Co.Ltd(600803) , ENN energy signed a 20-year long-term LNG agreement with energytransferlp respectively. The annual supply of LNG is 1.8 million tons and 900000 tons respectively, which will be delivered from 2026. Since October last year, the company has signed a total of 5.7 million T / a LNG long-term association. The price is linked to the benchmark price of Henry hub, and the price level is low. Relying on Zhoushan LNG terminal, the company locks in low-cost gas sources in multiple directions, further optimizes the cost of gas sources, and builds a solid barrier on the cost side. As a leading company in the natural gas industry with international trading capacity, it is also expected to benefit from the opportunities in the field of international natural gas trade under the background of rising natural gas prices in Europe in the near future.
Asset injection constructs the whole industrial chain of upstream, middle and downstream, which has both stability and growth: the company holds 32.67% of the equity of Hong Kong stock urban gas sector (consolidated). The main business of urban gas is stable and has carried out nationwide layout. At the same time, the company relies on the gas business and makes use of a large number of high-quality industrial and commercial customers accumulated for decades to actively develop comprehensive energy and layout photovoltaic and hydrogen energy sectors, which is expected to maintain steady growth in the future. In terms of growth, the company's 90% equity injection of Zhoushan LNG terminal is imminent. The current processing capacity of Zhoushan LNG terminal is 8 million tons / year, and the processing capacity is expected to reach 10 million tons / year after the completion of phase III. The asset injection of the terminal will further enhance the company's core competitiveness. In 2021, the capacity utilization rate of Zhoushan terminal is about 44%, and the scale of direct gas is 4.1 billion m3. The capacity utilization rate of Zhoushan terminal will continue to improve, and there is a large climbing space for direct gas business in the future.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be 5.38 billion yuan, 6.17 billion yuan and 7.04 billion yuan respectively, with growth rates of 31.3%, 14.5% and 14.2% respectively, corresponding to pe9.9% 8 times, 8.6 times, 7.5 times; Maintain the investment rating of Buy-A, and the six-month target price is 25.0 yuan.
Risk warning: the risk that the demand for natural gas is lower than expected, the risk of overseas LNG price fluctuation and the risk of coal price decline
