TYN(000591)2024-10-24 10:40Investment Rating - The report assigns a top investment rating to China Energy Conservation Solar Co., Ltd. (000591.SZ), indicating it is the number one rated company in the photovoltaic industry in the A-share market [1]. Core Insights - The company achieved record high performance in 2023, with revenue of 9.54 billion and a net profit of 1.58 billion, reflecting compound annual growth rates of 17.5% and 14.7% over the past five years [1]. - The photovoltaic power station business, which accounted for 67% of total revenue in the first half of 2024, has been a stable source of income, while the solar module manufacturing segment has shown significant revenue volatility [1][3]. - The company benefits from its status as a state-owned enterprise, allowing it to secure high-quality solar power projects in favorable locations, with a total operational, under-construction, and planned capacity of approximately 11.6 GW [5]. Revenue Breakdown - In 2023, the revenue from solar power stations was 4.55 billion, while the company has locked in an additional 7 billion in potential revenue from high-quality solar projects [5]. - The solar power station business has consistently maintained a gross margin above 90%, contrasting with the solar module business, which has struggled to generate profits [3][4]. Financing and Debt Management - As of June 2024, the company had a debt ratio of 42.7%, primarily relying on bank loans for financing, with long-term borrowings amounting to 13.7 billion [6][9]. - The company has issued green bonds totaling 1.8 billion, with favorable interest rates, indicating a strategy of low-cost financing backed by its state-owned enterprise status [10][12]. Dividend Policy - The company has a cash dividend policy, with a total cash dividend of 570 million in 2023, representing a significant portion of its free cash flow [13]. - The price-to-book ratio (PB) is currently at 0.88, suggesting a need for market value management, especially given its responsibilities as a state-owned enterprise [12].