SGC(SH:601139) Dongguan Securities·2025-09-01 12:54Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% over the next six months [9]. Core Insights - The company's revenue for H1 2025 reached 15.432 billion yuan, a year-on-year increase of 11.99%, while the net profit attributable to shareholders was 638 million yuan, a decline of 13.61% [1][7]. - The significant growth in gas resource revenue, which increased by 123.88% year-on-year to 3.406 billion yuan, is attributed to the historical high in key operational metrics [7]. - The company has seen a steady development in its pipeline gas business, with a total of 8.62 million users by the end of June 2025, reflecting a net increase of 210,000 users [7]. Summary by Sections Financial Performance - In H1 2025, the company reported total revenue of 15.432 billion yuan, up 11.99% year-on-year, while net profit decreased by 13.61% to 638 million yuan, primarily due to reduced profits from the smart services segment [1][7]. - The smart services segment's revenue fell by 68.76% to 319 million yuan, with a gross profit decline of 68.96% to 177 million yuan, largely due to decreased sales from gas equipment following the completion of the "bottle-to-pipe" project in Shenzhen [7]. Gas Resource Revenue - The gas resource revenue surged to 3.406 billion yuan, marking a 123.88% increase year-on-year, with natural gas wholesale volume reaching 758 million cubic meters, a growth of 205.65% [7]. Pipeline Gas Business - The company had 8.62 million pipeline gas users by June 2025, with a net increase of 210,000 users, including 5.88 million in the Greater Bay Area [7]. - Pipeline natural gas sales volume for H1 2025 was 2.630 billion cubic meters, reflecting a year-on-year increase of 5.71% [7]. Power Generation - The company successfully commissioned the second 9F unit of its deep-burning thermal power plant, with a total installed capacity of 1,300 megawatts. Power generation for H1 2025 was 931 million kWh, up 113.54% year-on-year [7]. Market Expansion - The company is actively expanding its market presence in the Greater Bay Area for city gas, power plants, and integrated energy, having signed a strategic cooperation agreement with the government of Shanwei City [7]. - In H1 2025, the company successfully expanded its customer base by adding two new power plant users in the Greater Bay Area [7]. Earnings Forecast - The company is projected to have earnings per share (EPS) of 0.51 yuan, 0.52 yuan, and 0.53 yuan for 2025, 2026, and 2027 respectively, with a corresponding price-to-earnings (PE) ratio of 13 times [7][8].