Entry Editor| Chopin Column Editor | LZ
Jiufeng Energy intends to buy 100% of the shares of Sentai Energy for no more than 1.8 billion yuan, which is obviously due to two strategic considerations, one is the Sichuan market and the other is Helium resources in Inner Mongolia.
Headquartered in Sichuan, Sentai Energy has the whole industrial chain of onshore LPG, four LPG refueling stations, of which 3 are distributed in the southern Sichuan market and 1 is in Ordos, Inner Mongolia. Unaudited revenue of 2021 was 2.343 billion and profit was 334 million. Sentai Energy's business distribution area is in Yunnan-Guichuan, Inner Mongolia, Ningxia, Shanxi, etc., if the acquisition is completed, Jiufeng Energy can enter the southwest market from the current main South China market.
In addition, Sentai Energy can produce helium with a purity of 99.99999% in Inner Mongolia, and has been put into operation at the end of 2021, making it one of the few independent helium production enterprises in China.
From the listing of Jiufeng Energy in May 2021, from the purchase of 1 LNG transport ship and 1 LPG transport ship for 2.127 billion yuan, to the signing of the joint development of hydrogen energy with Dongguan Juzhengyuan in December and the establishment of the development direction of hydrogen energy, to the acquisition of Sentai Energy to develop the southwest market and obtain helium resources in January 2022, the company's strategy is undergoing unprecedented changes.
Main business and actual controller?
Jiufeng Energy controllers Zhang Jianguo and Cai Lihong held a total of 51.939% of the shares, including 32.35% held by Jiufeng Investment, and the two directly held 11.71% and 5.02%. Cai Liping, sister of Cai Lihong, holds 4.46% of the shares, and her brother Cai Jianbin holds 1.12%. The total family holds 57.52% of the shares.
The company is in the middle of the gas industry, is a terminal clean energy integrated service provider, the products are liquefied petroleum gas (LPG), liquefied natural gas (LNG) and methanol, dimethyl ether (DME).
Jiufeng Energy's two core trade sectors, LPG and LNG, are purchased in Malaysia, Singapore, Italy and other overseas regions, achieving a total trade volume of 2.88 million tons in 2020, accounting for 53.41% and 40.13% of revenue in 2020, and 45.16% and 50.02% in the first half of 2021.
LPG and LNG business are mostly laid out in South China, and customers are mainly large-scale integrated energy groups and industrial direct supply sales.
How about income and making money?
From 2016 to 2020, Jiufeng Energy's revenue increased from 7.474 billion yuan to 8.914 billion yuan, a compound growth rate of 4.50%, and profit from 277 million yuan to 768 million yuan, with a compound growth rate of 29.03%. From 2017 to 2020, the gross profit margin was 8.11%, 10.01%, and 14.77%.
LPG revenue contribution ratio basically maintained more than 50%, the scale of revenue from 4.802 billion yuan to 4.716 billion yuan, compound growth of -0.36%; LNG revenue from 1.923 billion yuan to 3.666 billion yuan, a compound growth of 13.77%, revenue ratio also increased from 25.72% to 41.13%, is the company's second largest main business; methanol revenue from 540 million yuan to 412 million yuan Revenue accounted for from 9.51% to 4.62%.
Is the level of management and the level of returns high?
The issued market value of Jiufeng Energy is 19.07 billion yuan. From 2016 to 2020, total assets increased by 42.27% from 3.059 billion yuan to 4.352 billion yuan, total liabilities decreased by 25.65% from 2.234 billion yuan to 1.661 billion yuan, and the return on net assets fell from 85.76% to 12.57%.
The company's asset-liability ratio is 38.16%, and the net asset-liability ratio is 262.01%. Current liabilities for the first three quarters of 2021 consist of short-term borrowings of $1,337 million, notes and accounts payable of $105 million, contractual liabilities of $197 million and non-current liabilities due within one year of $236 million.
Where is the future growth?
Two new projects: investment of 2.127 billion yuan to purchase and build 1 LNG transport ship and 1 LPG ship, the construction period is expected to be 3 years, the internal rate of return after income tax is 10.66%, the investment payback period is 12.27 years, and the expected annual profit is about 173 million yuan.
Based on the 2020 profit of 768 million, the two projects landed, and the profit can increase by 22.53%.
Business extension to the field of hydrogen energy: subsidiary Jiufeng Group and Juzhengyuan signed a cooperation agreement with Juzhengyuan to jointly develop hydrogen energy, including key technology development, storage and transportation, filling, sales, hydrogen is derived from the hydrogen produced by Juzhengyuan's Dongguan Juzhengyuan PDH plant under Juzhengyuan. Dongguan Juzhengyuan currently has an annual output of 25,000 tons of hydrogen in the first phase of the PDH plant (which has been put into production), and the second phase of the project plans to produce 25,000 tons of hydrogen per year.
How to value it?
Since its listing, Jiufeng Energy has a historical P/E ratio of 20.05 times. In the third quarter of 2021, the number of shareholders was 37,284, and 8 institutions held 8,620,500 shares, the most core institutions Huaan Fund and Guofu Fund.
Historically, Jiufeng Energy's business has focused on the LNG sector, and the receiving station in Dongguan mainly enters the circulation application market directly through slot trucks, and the flexible operation mode is an important traditional advantage.
With the help of capital power, this company expands hydrogen energy, LNG in the southwest market and Helium resources in Inner Mongolia from the LNG South China market, forms a new energy gas resources whole industry chain company through industrial superposition, and gets rid of the dependence on the main business of energy trade with the three gas sources of "land gas + sea gas + hydrogen".
If the expectations are put a little longer, Jiufeng Energy is the starting point at this time.
(This report is based on the Z-chain entry Jiufeng Energy, and more readers are welcome to discuss the controversy with us or propose research topics to us.) ）
Produced by Ruilan Financial News
The article is for reference only The market is risky And investment should be cautious
Source: Blue Chip Corporate Review (ID: bluechip808)