Group 1 - Cemig (CIG) has returned approximately 17.7% year-to-date, outperforming the average Utilities sector gain of 14.4% [4] - The Zacks Rank for Cemig is currently 2 (Buy), indicating a positive earnings outlook with a 61.4% increase in the full-year earnings estimate over the past quarter [3] - Cemig belongs to the Utility - Electric Power industry, which has an average year-to-date gain of 18.1%, indicating that Cemig is slightly underperforming its industry [5] Group 2 - National Fuel Gas (NFG) has a year-to-date return of 18.8% and also holds a Zacks Rank of 2 (Buy) [4][5] - The consensus EPS estimate for National Fuel Gas has increased by 2.8% over the past three months [5] - The Utility - Gas Distribution industry, to which National Fuel Gas belongs, has gained 11.6% year-to-date [6]

Core Viewpoint - Cemig, a state-owned electricity company in Brazil, demonstrates strong operational efficiency and financial stability, making it an attractive option for dividend-seeking investors despite governance risks associated with its state ownership [1][10][13]. Financial Performance - In Q2, Cemig's consolidated net revenue increased by 7% year-over-year, driven by tariff adjustments of 7.4% for distribution and 5.4% for transmission [3][4]. - The company's recurring EBITDA rose by 2% to R$1.9 billion, while recurring net income decreased by 6.6% after tax adjustments [4]. - Operating cash flow for the first half of the year reached R$3.45 billion, indicating strong cash generation capabilities [4]. Investment Plans - Cemig plans to invest R$6.2 billion by 2024, with R$2.4 billion already invested, focusing on modernization and maintenance of the electric system [5][6]. - The investment plan for 2024-2028 totals R$35.6 billion, primarily allocated to regulated investments, which are predictable and less likely to face regulatory rejection [6]. Dividend Distribution - The company maintains a healthy dividend distribution strategy, with a current dividend yield of 6.1% and a payout ratio below 60% [9][12]. - Cemig's net debt to recurring EBITDA ratio stands at 1.02x, allowing for sustainable dividend payments while managing debt effectively [7][8]. Valuation - Cemig's stock is currently trading at attractive multiples, with a price-to-earnings ratio of 5.5x and a forward EV/EBITDA of 5.2x, both better than the sector median [9][10]. - Despite governance risks, the company's valuation remains appealing, with a forward price-to-earnings ratio of 7.3x, slightly below its 10-year average of 7.8x [10][12]. Governance and Risks - Governance risks are highlighted due to significant state ownership, with 50.9% of shares held by the State of Minas Gerais, which may impact investor confidence [10][11]. - The company has shown resilience in operations, but external factors such as macroeconomic conditions and regulatory changes pose potential risks [14].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lose momentum if future growth does not justify high valuations [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Cemig (CIG) Stock Analysis - Cemig (CIG) has shown a price increase of 11.4% over the past four weeks, indicating growing investor interest [4] - The stock has gained 9% over the past 12 weeks and has a beta of 1.29, suggesting it moves 29% more than the market [5] - CIG has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - CIG is trading at a Price-to-Sales ratio of 0.77, indicating it is undervalued at 77 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides CIG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Financial Data and Key Metrics Changes - The company's market value increased from BRL 10 billion to almost BRL 36 billion, with BRL 12.7 billion paid in dividends during this period [4][8] - The PN shares rose by 394% and ON shares by 437% [4][8] - The net debt over EBITDA ratio improved from 3.2 times to 1 time, and the company's rating increased by six notches to AA+ [34] Business Line Data and Key Metrics Changes - The company executed the largest CapEx plan in its history, amounting to BRL 49 billion, with BRL 13.6 billion already invested by 2023 [27][31] - Investments are focused on regulated businesses, with 80% of the BRL 49 billion allocated to distribution, transmission, and natural gas [29] Market Data and Key Metrics Changes - The company has seen a significant increase in market share, with EBITDA rising from 3.7% to close to 8% and net income increasing from 5.8% to 16.1% [33] - The company is now a leader in trading and aims to maintain this position in both the free and retail markets [32] Company Strategy and Development Direction - The company is focused on privatization as a long-term strategy to unlock more value [13][40] - The strategic plan emphasizes concentrating investments in Minas Gerais, with a commitment to customer-centric operations [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth, citing ongoing improvements in operational efficiency and customer service [12][38] - The company aims to enhance its competitive position by focusing on regulated investments and improving service quality [29][30] Other Important Information - The company has divested from minority holdings outside Minas Gerais, recovering BRL 13 billion and allowing for increased investments in its core operations [26][28] - The management highlighted significant technological advancements and improvements in customer service systems [17][36] Q&A Session All Questions and Answers Question: What is the outlook for privatization? - Management confirmed that privatization remains a key focus, with the goal of enhancing the company's value and operational efficiency [13][40] Question: How is the company addressing customer service improvements? - The company is implementing new technologies and systems to enhance customer interactions and service delivery [17][36] Question: What are the expectations for future investments? - The company plans to continue its aggressive investment strategy, particularly in regulated sectors, to improve service quality and operational capacity [29][31]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Comp En De Mn Cemig (CIG) as a strong value stock based on various financial metrics [2][8]. Group 1: Company Overview - Comp En De Mn Cemig (CIG) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock has a Forward P/E ratio of 7.14, significantly lower than the industry average of 15.15, suggesting it may be undervalued [4]. - CIG's Forward P/E has fluctuated between 5.07 and 8.97 over the past year, with a median of 6.47 [4]. Group 2: Valuation Metrics - CIG has a Price-to-Book (P/B) ratio of 1.15, compared to the industry average of 2.31, indicating a favorable valuation [5]. - The P/B ratio for CIG has ranged from 0.93 to 1.23 in the last 12 months, with a median of 1.05 [5]. - The Price-to-Sales (P/S) ratio for CIG is 0.79, which is lower than the industry average of 1.94, further supporting the undervaluation thesis [6]. - CIG's P/S ratio reflects a strong performance indicator as sales are less prone to manipulation [6]. - The Price-to-Cash Flow (P/CF) ratio for CIG stands at 4.32, well below the industry average of 10.17, indicating solid cash flow relative to its valuation [7]. - CIG's P/CF has varied between 3.42 and 4.66 over the past year, with a median of 3.91 [7]. Group 3: Investment Outlook - The combination of these metrics suggests that Comp En De Mn Cemig is likely undervalued, making it an attractive option for value investors [8].

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potent ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Comp En De Mn Cemig (CIG) as a strong value stock based on its financial metrics and Zacks ranking system [2][4][8] Company Metrics - CIG has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock's P/E ratio is 8.52, significantly lower than the industry average of 14.03, suggesting it may be undervalued [4] - CIG's P/B ratio stands at 1.06, compared to the industry's average P/B of 2.47, further indicating attractive valuation [5] - The P/S ratio for CIG is 0.7, while the industry average is 2.05, reinforcing the notion of undervaluation [6] - CIG's P/CF ratio is 3.96, compared to the industry's average of 12.05, highlighting its solid cash flow outlook [7] Investment Outlook - The combination of CIG's strong financial metrics and positive earnings outlook positions it as an impressive value stock currently [8]

Carolina Senna - IR Reynaldo Filho - CEO Leonardo Magalhaes - CFO Marney Antunes - CDO Marco Soligo - CPO Carolina Senna The transaction was concluded a large transaction. It's BRL 2.7 billion adjusted by the CDI. There is another less HPP's auction to happen now in July. So we are moving forward with our divestment in minority stakeholding and nonstrategic assets so that we can focus in our strategic assets, which are distribution, generation and transmission and managers. And here, once again, we have res ...

Table of Contents Annual Report and Form 20-F 2023 CEMIG Logo Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ SHELL COMPANY REPORT ...

Financial Data and Key Metrics Changes - The company reported a record net income of BRL 5.36 billion for 2023, reflecting a significant increase compared to previous years [34][76] - Adjusted EBITDA for Q4 2023 was greater than BRL 2 billion, with a recurring EBITDA growth of 16.6% over 2022 [32][34] - The company achieved a dividend yield of 12.4%, which is considered attractive in the current market environment [67][80] Business Line Data and Key Metrics Changes - CEMIG Distribution (CEMIG D) saw an EBITDA growth of almost 35% in Q4 2023, driven by a tariff review and increased demand due to higher temperatures [5][34] - CEMIG GT reported a recurring EBITDA growth of 37.7% in Q4 2023 compared to Q4 2022, with net income growing by 58.9% [13][34] - Gasmig, a natural gas distribution company, posted an EBITDA growth of 21.9% in 2023, attributed to tariff reviews and new investments [14] Market Data and Key Metrics Changes - The captive market for CEMIG D experienced a 2.4% growth, while distributed generation (DG) saw a 55% increase in energy injected compared to 2022 [8][34] - The migration of clients to distributed generation has impacted the concession area, with 18.4% of the total captive market now utilizing DG [7][8] Company Strategy and Development Direction - The company is focusing on divesting non-core assets and investing in regulated sectors, with a record investment plan of BRL 35.6 billion [70][76] - Future investments are planned to exceed BRL 6 billion in 2024, with a significant portion allocated to distribution [30][70] - The company aims to maintain its leadership in the trading sector while preparing for market openings [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet regulatory thresholds and maintain operational efficiency [12][73] - The company is committed to creating value for shareholders through both dividends and reinvestments in regulated sectors [20][22] - Management highlighted the importance of focusing on core activities and improving operational performance to drive future growth [66][70] Other Important Information - The company completed a successful debenture issuance of BRL 2 billion, reflecting strong investor confidence [39][40] - CEMIG has joined various sustainability initiatives, including the UN Global Compact, demonstrating its commitment to ESG principles [27] Q&A Session Summary Question: Could you comment on the growth of DEC in 2023? - Management acknowledged an increase in DEC due to extreme weather events but assured that it is back within regulatory thresholds as of February [55][56] Question: What is the company's approach to divestments? - The company has divested from non-strategic assets, generating significant cash inflow and avoiding capital injections in complex assets [16][17] Question: How does the company plan to handle actuarial liabilities? - Management stated that they are seeking structural solutions for actuarial liabilities and are awaiting court decisions on related matters [87]