CSG Energy(003035) 东吴证券·2025-01-23 08:28Investment Rating - Buy (Maintained) [1] Core Views - The company is strategically exiting the biomass business to focus on its core energy-saving advantages, which is expected to improve resource allocation and enhance financial statement quality [7] - The company's 2024 performance is significantly impacted by impairments related to biomass assets, with a projected net profit loss of 400-800 million yuan, a year-on-year decrease of 112 87%-125 75% [7] - The company plans to focus on building energy efficiency and industrial energy efficiency in 2025, aiming to expand into multi-energy coordination and high-end services, strengthen energy-saving and carbon reduction core sectors, and pursue mergers and acquisitions to enhance value [7] Financial Performance and Projections - Revenue for 2022 was 2,888 million yuan, with a year-on-year growth of 10 29%, while 2023 revenue was 2,988 million yuan, growing by 3 46% [1] - Net profit attributable to the parent company in 2022 was 553 91 million yuan, increasing by 15 65%, but in 2023, it dropped to 310 74 million yuan, a decrease of 43 90% [1] - For 2024, the company expects a net profit loss of 59 15 million yuan, but forecasts a recovery to 371 43 million yuan in 2025 and 496 61 million yuan in 2026 [1] - The company's EPS for 2022 was 0 15 yuan per share, dropping to 0 08 yuan in 2023, and is expected to be -0 02 yuan in 2024, with a recovery to 0 10 yuan in 2025 and 0 13 yuan in 2026 [1] Strategic Adjustments - The company is exiting the biomass business due to challenges such as fuel shortages, price inversions, and cash flow issues, which have negatively impacted profitability and financial statement quality [7] - The company has applied for bankruptcy for its biomass subsidiaries, Naneng Changling and Yangshan Nandian, to optimize resource allocation and reduce losses [7] - The company plans to focus on energy-saving businesses, particularly in building and industrial energy efficiency, and aims to expand into multi-energy coordination and high-end services [7] Market Data - The closing price of the company's stock is 4 13 yuan, with a one-year low of 3 90 yuan and a high of 5 45 yuan [5] - The company's market capitalization is 15,643 94 million yuan, with a P/B ratio of 2 28 [5] - The company's total assets are projected to grow from 18,383 million yuan in 2023 to 23,390 million yuan in 2026 [8] Financial Ratios and Metrics - The company's gross margin is expected to improve from 33 26% in 2023 to 39 41% in 2026 [8] - The company's ROE is projected to recover from -0 84% in 2024 to 6 28% in 2026 [8] - The company's P/E ratio is expected to decrease from 50 34 in 2023 to 31 50 in 2026 [8]