Core Viewpoint - The 2024 Annual General Meeting of Southern Power Grid Electric Technology Co., Ltd. outlines the procedures and key agenda items for the meeting, including the evaluation of internal controls, investment plans, financial budgets, and profit distribution proposals for the year 2024. Meeting Procedures - The meeting will verify the identity of attendees to ensure proper participation and maintain order [1][2] - Attendees must register and arrive on time, with the meeting host announcing the number of shareholders present and their voting rights [1][3] - Shareholders have the right to speak, inquire, and vote during the meeting, with specific procedures for raising questions and making statements [2][3] Internal Control Evaluation - The company conducted an internal control evaluation for the year 2024, covering governance, organizational structure, human resources, and financial activities [6] - The evaluation concluded that there were no significant defects in internal controls, and the company maintained effective internal controls in all major aspects [8] Financial Performance - For the year 2024, the company reported total assets of 4.71 billion yuan, a year-on-year increase of 1.99%, and total liabilities of 1.69 billion yuan, a decrease of 6.26% [12][16] - The net profit attributable to shareholders was 365 million yuan, reflecting a year-on-year growth of 29.79% [26] - The company’s revenue for 2024 was 3.01 billion yuan, an increase of 18.77% compared to the previous year [14][17] Investment Plans - The company has outlined its investment plans for 2025, focusing on fixed asset investments in research and development, production capacity, and information technology [9] - The total expected investment for 2025 is aimed at enhancing the company's core competitiveness and operational capabilities [9][24] Profit Distribution - The proposed profit distribution plan for 2024 includes a cash dividend of 1.35 yuan per 10 shares, totaling approximately 76.23 million yuan [22][23] - This distribution represents 41.77% of the net profit attributable to shareholders for the year [22] Related Transactions - The company anticipates engaging in daily related transactions totaling 3.939 billion yuan in 2025, including procurement and financial services from related parties [24]

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [6][16]. Core Views - The company is driven by a dual engine of "technical services + smart devices," indicating strong growth potential. The 2024 revenue reached 3.01 billion yuan, a year-on-year increase of 18.8%, with a net profit of 370 million yuan, up 29.8% [1][6]. - The company has a robust order backlog, with significant contracts in the energy storage and testing services sectors, suggesting sustained revenue growth in the coming years [6][7]. Financial Performance Summary - **2024 Financials**: - Total revenue: 3,014 million yuan, up 18.8% year-on-year - Net profit attributable to shareholders: 365 million yuan, up 29.8% - Earnings per share: 0.65 yuan [2][6]. - **2025 Projections**: - Expected total revenue: 4,126 million yuan, with a growth rate of 36.9% - Expected net profit: 481 million yuan, with a growth rate of 31.9% - Expected earnings per share: 0.85 yuan [2][6]. - **Profitability Metrics**: - Gross margin for 2024: 30.8%, up 1.8 percentage points year-on-year - Net profit margin for 2024: 12.1%, up 1.0 percentage points year-on-year [6][7]. Order Backlog and Growth Potential - As of Q1 2025, the company has a backlog of approximately 9.5 billion yuan in energy storage system technical services and over 5 billion yuan in testing and commissioning services [6][7]. - The company is involved in significant projects, including the largest user-side energy storage project in Jiangsu and various testing projects in Guangdong [6][7]. Valuation and Target Price - The target price for the company is set at 34.10 yuan, based on a projected price-to-earnings ratio of 40 times for 2025, reflecting its leading position in the smart energy sector [2][6].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return that exceeds the market benchmark by more than 15% over the next 6-12 months [12]. Core Views - The company achieved a significant year-on-year increase in net profit, primarily due to improved profit margins. In Q1 2025, the net profit attributable to the parent company was 0.57 billion yuan, up 35.66% year-on-year [2]. - The company is expanding its market presence in the technical services sector, particularly in energy storage system services and testing services. Notable projects include winning bids for major energy storage projects totaling approximately 3.7 billion yuan [2]. - In the smart devices sector, the company is focusing on the development of robotics and drones, offering various inspection and operational robots, as well as specialized drones for the power industry [3]. Summary by Sections Financial Performance - In Q1 2025, the company reported operating revenue of 5.1 billion yuan, a year-on-year increase of 0.87% but a quarter-on-quarter decrease of 43.61%. The net profit attributable to the parent company was 0.57 billion yuan, reflecting a year-on-year increase of 35.66% [1][2]. - The gross profit margin for Q1 2025 was 32.51%, up 0.36 percentage points year-on-year, while the net profit margin was 11.46%, an increase of 3.03 percentage points year-on-year [2]. Business Segments - The technical services segment includes energy storage system services and testing services. The company has secured significant contracts in energy storage, with a total scale exceeding 400MWh [2]. - The smart devices segment includes smart monitoring equipment, smart distribution equipment, and robotics. The company has developed a range of inspection robots and drones, enhancing operational capabilities in various industries [3]. Profit Forecast and Valuation - The company’s profit forecasts for 2025-2027 have been adjusted, with expected net profits of 4.81 billion yuan, 6.23 billion yuan, and 7.74 billion yuan respectively. The forecasts have been revised down by 23% for 2025 and 2026 [4][5]. - The company is backed by the Southern Power Grid, with significant growth potential in technical services and smart devices [5].

Investment Rating - The report maintains a "Buy" rating for the company, indicating expected returns exceeding the market benchmark by 5% to 15% over the next 6-12 months [5][12]. Core Insights - The company's net profit increased significantly by 35.66% year-on-year in Q1 2025, primarily due to improved profit margins. The gross profit margin was 32.51%, up by 0.36 percentage points year-on-year, while the net profit margin rose to 11.46%, an increase of 3.03 percentage points [2][3]. - The company is expanding its market presence in the technical services sector, particularly in energy storage system services and testing services. Notable projects include winning bids for major energy storage projects totaling approximately 3.7 billion yuan [2][3]. - In the smart equipment sector, the company focuses on the development of robots and drones, introducing innovative solutions for outdoor inspections and operations in various industries [3]. Financial Performance Summary - For Q1 2025, the company reported revenue of 510 million yuan, a year-on-year increase of 0.87%, but a quarter-on-quarter decrease of 43.61%. The net profit attributable to shareholders was 57 million yuan, with a year-on-year increase of 35.66% and a quarter-on-quarter decrease of 33.31% [1][2]. - The company expects net profits for 2025, 2026, and 2027 to be 481 million yuan, 623 million yuan, and 774 million yuan, respectively, reflecting a downward revision of 23% for 2025 and 2026 [4][5]. Profitability and Valuation Metrics - The report provides a detailed forecast of key financial metrics, including revenue growth rates and net profit margins, with expected revenue growth of 33.04% in 2025 and a net profit margin of 12.0% [4][10]. - The company's P/E ratio is projected to decrease from 59 in 2023 to 22 in 2027, indicating an improving valuation as earnings grow [4][11]. Market Position and Future Outlook - The company is well-positioned within the energy sector, backed by the South Grid Group, with significant growth potential in both technical services and smart equipment [2][3]. - The report highlights the company's innovative approaches and successful project acquisitions as key drivers for future growth [2][3].