Shenergy Company (600642) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 8.69 billion, up 8.84% year-over-year; net profit attributable to shareholders surged 65.91% to RMB 1.09 billion for the quarter.

• For the first nine months, revenue totaled RMB 22.37 billion, up 2.21% year-over-year; net profit attributable to shareholders was RMB 3.28 billion, up 31.05%.

• Strong profit growth driven by increased power sector profitability and higher fair value of financial assets.

Financial highlights

• Q3 basic EPS was RMB 0.222, up 64.44% year-over-year; nine-month EPS was RMB 0.669, up 30.16%.

• Operating cash flow for Q3 was RMB 1.68 billion, down 32.16% year-over-year; nine-month operating cash flow was RMB 6.13 billion, nearly flat year-over-year.

• Total assets at quarter-end were RMB 99.25 billion, up 5.35% from year-end 2023; shareholders’ equity was RMB 37.19 billion, up 10.89%.

• Non-recurring gains for the nine months totaled RMB 342 million, mainly from government subsidies and fair value changes.

Key financial ratios and metrics

• Weighted average ROE for Q3 increased by 1.07 percentage points to 3.11%; for the nine months, ROE rose by 1.57 points to 9.44%.

• Gross margin for the nine months improved, reflecting higher profitability in the power sector.