Zhitong Finance APP learned that Tianlun Gas (01600) issued a series of announcements at the end of November, including the appointment of former ENN executives as executive directors and general managers, the announcement of new development strategies for the next three years and the strategic cooperation agreement with Guodian Investment Henan.
Among them, the new development strategy announcement announced by Tianlun Gas in the next three years (2022-2024) shows that the company has adjusted its strategic positioning, and the new positioning is "taking the gas business as the core, through business extension and innovation, to provide users with low-carbon, economical, safe and convenient energy services, and aiming to become China's first-class green and low-carbon energy supply and service provider". This means that Tianlun Gas will officially expand from traditional city gas to low-carbon and new energy business.
The company has also announced a detailed strategic development path: 1. 2. High-quality endogenous growth of the gas business; 3. High-quality M&A of gas business; 3. Promote the development of innovative businesses; 5. Increase the scale of income and profit with high quality; Improve the level of safety management and ESG.
At the same time, in the past 10 trading days, the company has repurchased more than 7 million shares, with repurchase prices ranging from HK$7.57 to HK$8.1.
In this regard, a number of securities companies have given a target price of more than 10 Hong Kong dollars to Tianlun Gas, which has a potential space of more than 25% compared with the current level.
Zhongtai International said on December 7 that the bank expected the implementation of the new development strategy, coupled with the cooperation with the State Power Investment Group and the appointment of new executives, to enhance the company's medium- and long-term profit growth, so it gave the company a "buy" rating to maintain a target price of HK$10.20.
Given a target price of HK$10.10, the bank believes the company recently launched its first share repurchase program in five years, buying back 6.9 million shares between December 2 and December 14, which shows management's confidence in the business and support for the share price. In addition, the bank believes that the green energy business (which will account for 10% of total revenue by 2024) will be a catalyst for long-term growth.
In addition, BOCOM International believes that the company released a new strategic development plan for 2022-2024, the core of which is stable and high-quality development, and urban gas operations will remain the core business in the future, but at the same time, Tianlun's goal is to provide users with low-carbon, economical, safe and convenient energy services.
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