jeopardylive| Research report Nuggets 丨 Fortune Securities: Binhai Investment consolidates upstream resources, develops downstream customers, and is expected to increase its gross gap

According to the Wealth Securities Research report, in 2023, Binhai Investment (2886Jeopardylive.HK) Total revenue rose 5% to 64JeopardyliveThe net profit was HK $260 million and the gross profit margin remained at 11.7%. Gas sales reached 9.4%.JeopardyliveThe year-on-year growth exceeded the national average, of which the proportion of industrial and commercial users' sales significantly increased to 83.6%, leading the industry. In order to consolidate the upstream resources, the Group has signed natural gas purchase and sales contracts with Xintian Green Energy and other enterprises, not only expandingJeopardyliveGas source channels, but also through the use of LNG receiving stations around Tianjin to reduce procurement costs and enhance profitability.

As the US Energy Information Administration predicts that natural gas prices will fall by 12% in 2024, coupled with the promotion of the domestic natural gas price linkage mechanism, 70% of the group's domestic gas volume has completed price adjustment, and the gross margin has increased to 0.47 yuan in 2023, indicating that the gross margin is expected to widen further in 2024, thanks to the dual benefits of lower costs and higher selling prices.

Looking to the future, the group set a sales growth target of 15% in 2024 to reach 2.5 billion cubic meters, with emphasis on the rapid growth of the value-added services sector, with a compound gross profit growth rate of 62% between 2019 and 2023. It indicates that this sector will continue to serve as an important growth force and maintain a strong growth trend in 2024. As a whole, it shows the positive progress and optimistic prospects of the company in optimizing the cost structure, expanding the market and business diversification.