CSG Energy(SZ:003035) SINOLINK SECURITIES·2025-03-30 10:23Investment Rating - The report maintains a "Buy" rating for the company, with expected earnings per share (EPS) of 0.12, 0.15, and 0.18 for the years 2025, 2026, and 2027 respectively, corresponding to price-to-earnings (PE) ratios of 35x, 28x, and 24x [5] Core Insights - The company reported a revenue of 3.16 billion RMB for the year 2024, reflecting a year-on-year growth of 5.6%. However, it faced a net loss attributable to shareholders of 0.06 billion RMB, a significant decline of 118.7% year-on-year, primarily due to impairment losses on biomass assets and subsidy reductions [3][10] - The company aims to accelerate its focus on energy-saving services while divesting from non-core biomass operations, which have been underperforming due to rising fuel prices and insufficient customer demand [10] - The energy-saving services segment showed stable growth, with revenues of 3.099 billion RMB and a net profit of 0.54 billion RMB in 2024, excluding the biomass business impact [10] Financial Projections - The company is projected to achieve net profits of 0.46 billion RMB, 0.56 billion RMB, and 0.66 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding net profit growth rates of 22.02% and 17.86% [9] - Revenue growth rates are expected to increase from 5.58% in 2024 to 15.69% by 2027, indicating a positive trend in the company's core business operations [9][11] Business Strategy - The company plans to expand into new energy utilization models, including integrated energy systems and carbon reduction projects, while also exploring value-added services in the energy sector [10] - As of the end of 2024, the company had installed 3.085 million kW of photovoltaic capacity, a year-on-year increase of 31.8%, indicating a strong position in the renewable energy market [10]