On April 12, Jiangxi Jovo Energy Co.Ltd(605090) ( Jiangxi Jovo Energy Co.Ltd(605090) ) announced the 2021 annual report and the 2022 first quarter report. In 2021, the company achieved an operating revenue of 18.488 billion yuan, a year-on-year increase of 107.42%; Affected by the large fluctuation of natural gas prices outside China during the year, the non net profit attributable to the parent company was 639 million yuan, a year-on-year decrease of 16.55%. In the first quarter of 2022, the profitability of the company was significantly improved compared with the same period in 2021, realizing an operating revenue of 7.017 billion yuan, a year-on-year increase of 126.18%; The net profit attributable to the parent company was 393 million yuan, a year-on-year increase of 40.66%. In addition, the company’s profit distribution plan for 2021 shows that the company plans to distribute a cash dividend of 2.50 yuan (including tax) for every 10 shares and increase 4 shares.
Jiangxi Jovo Energy Co.Ltd(605090) positioned as a “clean energy service provider with value and creativity”, based on natural gas, petroleum gas and other clean energy industries. After more than 30 years of development, the business layout of the company has covered the whole industrial chain of international procurement – ocean transportation – wharf storage – processing and production – logistics distribution – terminal services, and realized the all-round layout of clean energy “end-to-end” (from the source of resources to the demand of direct users). Among the company’s main products, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) are the core businesses of the company, methanol, dimethyl ether (DME) and other chemical products are the business of the company’s steady development, and hydrogen energy is the new business actively arranged by the company.
Under the national “double carbon” strategic goal, the natural gas industry is in the golden period of sustained growth in medium and long-term demand. However, in the short term, affected by the growth of demand, geopolitics, the unsealing of the epidemic, extreme weather, the low natural gas inventory in Europe, the insufficient supply of wind and solar power generation, and the obstruction of “beixi-2” ventilation, the structural mismatch between international natural gas supply and demand has become prominent since 2021, driving the price to rise continuously. Affected by this, China’s natural gas prices fluctuated greatly.
Facing the complex and changeable business environment, Jiangxi Jovo Energy Co.Ltd(605090) give full play to the advantages of the layout of the whole industrial chain, and take optimizing the structure of Chinese customers and expanding the resource pool as two important starting points. Since 2021, the company has implemented the development strategy of “land, to the terminal and out of South China” in LNG business. Under the condition of insufficient price competitiveness of sea and gas, the company has increased the procurement of domestic “land gas resources” and created a “sea and gas + land gas” dual gas resource pool. In terms of LPG business, the company proposes to “expand the wharf, enter the chemical industry and build a platform”, and quickly layout the chemical raw material gas market on the basis of consolidating the advantages of civil gas market. The company is firmly positioned in the upstream and closed-loop development of hydrogen production and charging industry.
actively promote epitaxial M & A and expand land LNG gas source
In 2021, great changes have taken place in the international natural gas market. The spot CIF price of “Haiqi” LNG has been upside down with the price in the Chinese market for a long time. Although the company has sufficient advantages and guarantee of long-term gas, the volatility of single gas source still poses challenges to the sustainable and stable operation of listed companies. Therefore, the company has put forward the LNG business development strategy of “landing, reaching the terminal and leaving South China”.
This is not the first time that the company has proposed a nine word LNG business development strategy. In January this year, the company announced that it plans to acquire 100% equity of Sichuan Yuanfeng Sentai Energy Group Co., Ltd., so as to realize the interconnection between “Sea gas resources” and “land gas resources” of Sentai energy, and promote the sustainable, stable and healthy development of the company. Meanwhile, Sentai energy’s operation and market areas cover Sichuan, Yunnan, Guizhou, Inner Mongolia, Ningxia, Shanxi and other regions. After the completion of the transaction, Jiangxi Jovo Energy Co.Ltd(605090) ‘s market radiation will rapidly expand from South China to southwest and northwest regions.
At the same time, the listed company announced that it plans to purchase 28% equity of Sichuan Huayou Zhonglan Energy Co., Ltd. Huayou Zhonglan is currently the largest single natural gas liquefaction plant in Southwest China, an important LNG provider in the region and has high market popularity. Both acquisitions are the concrete embodiment of the company’s practice of LNG business development strategy, and positive progress has been made in realizing the national industrial layout.
In 2021, the domestic sales volume of Jiangxi Jovo Energy Co.Ltd(605090) lng remained basically stable, in which the sales volume of direct end users such as industrial (Park) users, gas power plants and key customers accounted for more than 70% of the company’s sales volume in China; At the same time, middleman customers represented by urban gas and traders have become an important supplement to sales, and the company’s customer structure and quality have been significantly optimized and improved. The report shows that the company strives to increase the proportion of direct end-user sales in China to more than 90% in about three years.
lpg rapid layout chemical raw material gas market
After more than 30 years of accumulation and development, at present, Jiangxi Jovo Energy Co.Ltd(605090) is the fourth largest LPG importer in China and the largest LPG importer in South China. It has high market popularity and reputation, and its sales scale is firmly in the forefront of China. With the successful listing of the company, the company put forward the “start again” of LPG business and formulated the business development strategy of “expanding wharf, entering chemical industry and building platform”.
The specific embodiment of LPG nine character policy and strategy is: the company expands new LPG terminals through self construction or acquisition, holding or equity participation, matches corresponding storage bases, and realizes the LPG business to go out of the South China market and realize step-by-step growth through the “terminal + market” mode; At the same time, since the demand for chemical raw material gas has become the driving force for the growth of LPG consumption, on the basis of consolidating the advantages of civil gas market, the company has quickly laid out the chemical raw material gas market and continuously optimized the sales structure of LPG business.
The company has mature LPG international procurement resources, channels and expertise, and has the qualification of LPG futures delivery library. The company will build and export LPG trading platforms and services to help downstream customers realize the combination of LPG futures and cash and hedge risks.
hydrogen business industry closed loop development strategy
Hydrogen energy is the new energy industry direction of Jiangxi Jovo Energy Co.Ltd(605090) firm layout. In recent years, hydrogen energy, as a clean and low-carbon new energy, has been highly concerned by the national and local governments. With the implementation of the top-level design of hydrogen energy, hydrogen energy will become an important part of China’s future energy system. The development of China’s hydrogen energy industry is entering a fast lane, and the development mode and path are becoming clear. At the same time, the hydrogen energy industry in Guangdong Province has good development prospects and has great synergy and matching with the company’s current business.
According to the latest research report of Sinolink Securities Co.Ltd(600109) on the layout of hydrogen energy, Jiangxi Jovo Energy Co.Ltd(605090) has outstanding advantages: it plans to establish a joint venture with juzhengyuan to sell the by-product hydrogen of purified juzhengyuan propane dehydrogenation project, with a phase I capacity of 25000 tons / year, which is the largest by-product hydrogen energy production in Guangdong at present. It is expected to be put into operation in the fourth quarter of 2022 as soon as possible. The sales volume of high-purity hydrogen in 2022 and 2023 will be 3000 tons and 15000 tons respectively, and the revenue contribution will be 50 million and 240 million respectively; Hydrogen production from natural gas: it is estimated that by 2025, the supply and demand gap of high-purity hydrogen in Guangdong will reach 300000 tons. The company’s low-cost imported LNG resources have the economy of hydrogen production. The company’s hydrogen production from natural gas will become a strong guarantee for hydrogen for vehicles in Guangdong. Electrolytic hydrogen production: at present, Guangdong supports hydrogen production in stations. With the support of policies, the cost of hydrogen production in Guangdong Gudian can be as low as about 17 yuan / kg. The company can use its own LNG filling station to layout hydrogen production in stations.
Jiangxi Jovo Energy Co.Ltd(605090) with superior geographical location, the company’s hydrogen source is located in Dongguan, adjacent to Shenzhen, Guangzhou and Foshan, three cities with the highest number of fuel cell vehicles and low cost. It is expected that the hydrogen project will achieve “full production and full sales” after it is put into operation.
The annual report shows that at present, the company is positioned as the middle and upper reaches in the layout of hydrogen energy industry, that is, hydrogen production, filling and sales, so as to realize the industrial closed loop. In the process of hydrogen production, on the one hand, through cooperation with Ju Zhengyuan, we can obtain purified hydrogen, a byproduct of PDH industry; On the other hand, pay close attention to the implementation of hydrogen energy policy and the changes of hydrogen fuel cell vehicle market. According to the potential market demand, actively arrange hydrogen production by natural gas reforming and electrolytic water, so as to provide the market with large-scale and low-cost transportation fuel parity hydrogen. In the sales link, the company will actively explore and layout the hydrogenation station and change the gas station to the hydrogenation station to solve the problem of “the last kilometer” of hydrogen consumption.
