CSG Energy(003035) 国信证券·2024-09-01 08:01Investment Rating - The report maintains an "Outperform" rating for Southern Power Grid Energy Efficiency and Clean Energy Co Ltd (003035 SZ) [1][12] Core Views - Distributed photovoltaic business is developing steadily, with industrial energy-saving revenue increasing steadily, driving growth in revenue and net profit [1][5] - The company is actively expanding decentralized wind power business, forming a new growth point [1][11] - Biomass business is being phased out in an orderly manner, and its impact on the company's performance is expected to gradually weaken [1][11] Business Performance Revenue and Profit - In H1 2024, the company achieved revenue of 1 323 billion yuan (+1 57% YoY), net profit attributable to shareholders of 205 million yuan (+5 29% YoY), and non-GAAP net profit of 199 million yuan (+4 88% YoY) [1][5] - Industrial energy-saving business revenue reached 690 million yuan (+14 00% YoY), with distributed photovoltaic business contributing 563 million yuan (+12 71% YoY) [1][5] - Building energy-saving business revenue was 411 million yuan (-1 52% YoY), and comprehensive resource utilization business revenue was 154 million yuan (-21 58% YoY) [1][5] Decentralized Wind Power - The company has made significant progress in decentralized wind power, with 80 MW of wind power projects in operation as of June 2024, generating revenue of 21 million yuan in H1 2024 [1][11] Biomass Business - Biomass comprehensive utilization business revenue was 39 million yuan (-53 01% YoY) in H1 2024, with reduced operating losses [1][11] - The company plans to further adjust the exit strategy for biomass projects [1][11] Financial Forecasts - Net profit attributable to shareholders for 2024-2026 is forecasted to be 319 million yuan, 587 million yuan, and 654 million yuan, respectively, with YoY growth rates of 2 8%, 83 8%, and 11 5% [12] - EPS for 2024-2026 is expected to be 0 08 yuan, 0 15 yuan, and 0 17 yuan, respectively [12] Operational Highlights Distributed Photovoltaic - The company's distributed photovoltaic installed capacity reached 2 100 MW by H1 2024, a 12 54% increase from 2023 [10] - The company has a sufficient reserve of distributed photovoltaic projects, ensuring future growth [10] Financial Metrics - In H1 2024, the company's gross margin decreased by 2 03 pct YoY to 32 67%, while the net margin increased by 0 08 pct YoY to 16 85% [7] - ROE increased slightly by 0 03 pct YoY to 2 99% in H1 2024 [8] - Operating cash flow improved significantly, reaching 567 million yuan (+331 51% YoY) in H1 2024 [8] Industry and Policy Context - The company is benefiting from national policies promoting decentralized wind power, such as the "Thousand Villages and Ten Thousand Villages Wind Power Action" initiative [11]