CSG Energy(SZ:003035) Guoxin Securities·2025-03-31 09:46Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company's operating revenue increased by 5.58% year-on-year to 3.155 billion yuan in 2024, while the net profit attributable to the parent company significantly decreased by 118.71% to -58 million yuan, primarily due to impairment losses related to biomass business [1][7] - The company is focusing on transforming its business structure towards "investment holding + high-end services," with an emphasis on energy comprehensive utilization and energy-saving projects [2][20] - Profit forecasts for 2025-2027 have been adjusted downwards due to expected declines in electricity prices from distributed photovoltaic projects, with projected net profits of 572 million yuan, 650 million yuan, and 744 million yuan respectively [3][21] Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 3.155 billion yuan, a 5.58% increase, while the net profit attributable to the parent company was -58 million yuan, a decrease of 118.71% [1][7] - The decline in net profit was mainly due to impairment losses from the biomass resource utilization business, which reduced net profit by approximately 2.10 billion yuan and 2.88 billion yuan from various impairment provisions [1][7] - The company's gross margin increased to 36.71%, while the net profit margin decreased significantly to -2.17% due to rising expense ratios and increased impairment losses [13][16] Business Strategy - The company is advancing its business structure transformation by investing in new energy utilization models and expanding its comprehensive energy services [2][20] - Key areas of focus include energy-saving renovations for public institutions, green energy systems for transportation hubs, and energy management for major energy-consuming units [20][21] Profit Forecasts - The adjusted profit forecasts for 2025-2027 are 572 million yuan, 650 million yuan, and 744 million yuan, with corresponding EPS of 0.15, 0.17, and 0.20 yuan [3][21] - The current stock price corresponds to a PE ratio of 28.0, 24.6, and 21.5 for the years 2025-2027 [3][21]