CSG Energy(SZ:003035) SINOLINK SECURITIES·2024-09-01 08:33Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a revenue of 1.32 billion RMB for 1H24, a year-on-year increase of 1.6%, and a net profit attributable to shareholders of 210 million RMB, up 5.3% year-on-year [2] - The biomass power generation business has reduced losses, and the subsidy verification has been implemented, with confirmed renewable energy subsidy funds amounting to 340 million RMB [2] - The company plans to significantly increase its investment scale in photovoltaic projects, with a total planned installation capacity of 582,000 kW, a year-on-year increase of 102.8% [2] Summary by Sections Financial Performance - In 1H24, the company achieved a revenue of 1.32 billion RMB, with a net profit of 210 million RMB [2] - For Q2 alone, the revenue was 750 million RMB, a decrease of 0.99% year-on-year, while the net profit was 120 million RMB, an increase of 2.2% year-on-year [2] Business Analysis - The comprehensive resource utilization business saw a revenue decline of 21.6% in 1H24, but the gross margin improved by 4.3 percentage points [2] - The distributed wind power business has officially started operations, contributing positively to performance [2] - The photovoltaic installed capacity reached 2.446 million kW by 1H24, with an increase of 226,000 kW in the first half of the year [2] Profit Forecast and Valuation - The company is expected to achieve net profits attributable to shareholders of 480 million RMB, 690 million RMB, and 810 million RMB for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.13 RMB, 0.18 RMB, and 0.21 RMB [2] - The projected PE ratios for the next three years are 32x, 22x, and 19x respectively [2]