SGC(SH:601139) SINOLINK SECURITIES·2024-10-30 08:15Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 7.47 RMB for 2024 [2][8]. Core Insights - The company reported a revenue of 20.74 billion RMB for the first three quarters of 2024, a year-on-year decrease of 10.6%, and a net profit of 1.01 billion RMB, down 2.6% year-on-year [2]. - In Q3 2024, the revenue was 6.96 billion RMB, reflecting a 12.7% decline year-on-year, while the net profit dropped by 30.3% to 310 million RMB [2]. - The slowdown in natural gas sales growth is attributed to decreased demand outside the Greater Bay Area, with total gas sales volume for 2024 reaching 1.51 billion cubic meters, a 1.4% increase year-on-year [2]. - The company's comprehensive energy and smart services business faced pressure, leading to revenue and profit declines, particularly in the photovoltaic sector and gas engineering services [2]. Summary by Sections Revenue and Profit Analysis - The company achieved a revenue of 20.74 billion RMB in the first three quarters of 2024, down 10.6% year-on-year, with a net profit of 1.01 billion RMB, a decrease of 2.6% [2]. - Q3 2024 revenue was 6.96 billion RMB, down 12.7% year-on-year, and net profit was 310 million RMB, down 30.3% [2]. Sales Performance - Natural gas sales volume for 2024 was 1.51 billion cubic meters, up 1.4% year-on-year, but the growth rate has slowed significantly [2]. - Sales in the Greater Bay Area reached 300 million cubic meters, a 2.8% increase year-on-year, while other regions saw a 9.3% decline [2]. Business Segment Performance - The comprehensive energy business, including photovoltaic film and gas power generation, is under pressure, with expectations of continued challenges for the photovoltaic film manufacturing subsidiary [2]. - The smart services business, which includes gas value-added services and gas equipment, is also facing difficulties due to a significant drop in new gas users in Shenzhen [2]. Future Outlook - The company is expected to recover its gas sales margin as residential gas prices align with international gas prices, projecting net profits of 1.37 billion RMB, 1.59 billion RMB, and 1.87 billion RMB for 2024, 2025, and 2026 respectively [2].