Shuangliang Eco-Energy(SH:600481) Huachuang Securities·2025-05-19 05:01Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 5.53 yuan [2][8]. Core Insights - The company reported a significant decrease in revenue for 2024, with total revenue of 13.038 billion yuan, a year-on-year decline of 43.7%. The net profit attributable to shareholders was -2.134 billion yuan, marking a shift from profit to loss [4][8]. - The company's photovoltaic product business faced profitability challenges, but there was a notable reduction in losses in Q1 2025 compared to previous quarters. The company’s cash flow remained positive, and the impairment losses were significantly reduced [8]. - The equipment manufacturing segment showed strong order intake, with substantial growth in orders for energy-saving and water-saving equipment, indicating a stable revenue source for the company [8]. Financial Performance Summary - 2024 Financials: Total revenue of 13,038 million yuan, net profit of -2,134 million yuan, and a gross margin of -2.22% [4][8]. - 2025 Projections: Expected revenue growth to 15,097 million yuan with a net profit of 214 million yuan, indicating a recovery phase [4][8]. - Key Ratios: The company’s PE ratio is projected to be 40 in 2025, decreasing to 8 by 2027, reflecting an anticipated recovery in profitability [4][8]. Business Segment Analysis - Photovoltaic Products: Revenue of 88.62 billion yuan in 2024, with a gross margin of -16.6%. The company is expected to recover as market conditions improve [8]. - Equipment Manufacturing: The segment is expected to maintain stable growth due to a strong order backlog, particularly in the thermal pump and heat exchanger sectors [8]. Cash Flow and Asset Management - The company experienced a slight cash outflow in 2024 but has shown positive operating cash flow in the last three quarters of the year. Asset impairment losses were significantly reduced in Q1 2025 [8].