XINZHU CORPORATION(SZ:002480) Hua Yuan Zheng Quan·2025-08-29 09:32Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [6][9]. Core Views - The company is a listed platform under Shudao Group, focusing on the clean energy generation business through asset restructuring [8][11]. - The acquisition of Shudao Clean Energy Group aims to enhance the company's focus on clean energy generation, transitioning away from traditional businesses [19][37]. - The company is expected to benefit from the resource advantages of Shudao Group, which is actively involved in the development of multiple hydropower projects and renewable energy resources [32][37]. Financial Performance and Forecast - The company’s projected revenue for 2023 is 2,509 million RMB, with a year-on-year growth rate of 52.14%. However, a decline in revenue is expected in subsequent years, with 2024 projected at 2,483 million RMB, a decrease of 1.05% [7]. - The net profit attributable to shareholders is forecasted to be -342 million RMB in 2023, worsening to -409 million RMB in 2024, before improving to -127 million RMB in 2025 [7][9]. - The earnings per share (EPS) is expected to be -0.45 RMB in 2023, improving to -0.16 RMB by 2025 [7]. Business Strategy and Development - The company plans to divest from its traditional businesses in rail transit and bridge components, focusing instead on clean energy generation [19][33]. - Shudao Clean Energy is projected to have an operational and under-construction installed capacity of 10.5 million kW by the end of 2024, with significant contributions from hydropower projects [11][37]. - The company is also exploring new models that integrate transportation and energy, as well as renewable energy and mining [11][32]. Market Position and Competitive Landscape - The company is positioned as one of the five major listed platforms under Shudao Group, which is a significant player in the transportation and energy sectors in Sichuan Province [32][33]. - The average price-to-book (P/B) ratio of comparable companies is approximately 7.5, while the company's current P/B ratio is about 5.6, indicating potential for growth post-restructuring [9][11].