SCG(600170) 广发证券·2024-12-31 11:01Investment Rating - The report assigns a reasonable value of 3.28 yuan to the company, with a current price of 2.72 yuan, indicating potential upside [44]. Core Insights - The company is positioned to benefit from accelerated investments in water conservancy and urban renewal projects, particularly in the Yangtze River Delta region, which has a lower fiscal pressure and greater potential for investment expansion [48]. - The company has secured significant contracts in water conservancy projects, with a total bid amount of 3.59 billion yuan in the first half of 2024, representing 1.7% of all new contracts signed [24][28]. - The company is actively expanding its renewable energy initiatives, focusing on photovoltaic and energy storage projects, with a notable increase in installed capacity in Shanghai [17][29]. Summary by Sections Water Conservancy and Management - The company is expanding its water conservancy and management business, focusing on various projects such as flood control, sewage treatment, and smart water management [3][4]. - In 2023, the total investment in water conservancy reached 1.1996 trillion yuan, a year-on-year increase of 10.1%, while water supply fixed asset investment was 281.7 billion yuan, up 4.3% [19][20]. Renewable Energy - The photovoltaic sector is experiencing robust growth, with a nationwide increase in installed capacity of 206.3 GW in 2024, a year-on-year increase of 25.88% [14][15]. - The company has invested in multiple distributed photovoltaic projects, achieving a total installed capacity of approximately 18 MW and generating over 10,861 MWh of electricity, which has led to significant carbon emissions reductions [17][18]. Nuclear Power - The company is entering the advanced nuclear power sector, focusing on thorium molten salt reactor technology, with a projected global market size of 4.155 billion USD by 2030 [6][11]. - The company has signed agreements for the installation and operation of thorium molten salt reactors, indicating a strategic move into this emerging energy sector [11][12]. Financial Performance - The company's revenue for 2023 was 30.4628 billion yuan, with a projected decline of 5.1% in 2024, followed by a recovery in subsequent years [45]. - The net profit attributable to shareholders is expected to grow steadily, reaching 1.793 billion yuan by 2026, reflecting a compound annual growth rate (CAGR) of 7.1% [45].