Shenzhen Energy Group (000027) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was ¥10.62 billion, down 4.3% year-over-year; net profit attributable to shareholders was ¥371.5 million, down 67.68% year-over-year.

• Year-to-date revenue reached ¥30.41 billion, up 3.61% year-over-year; net profit attributable to shareholders was ¥2.13 billion, down 29.79% year-over-year.

• Power generation for the first nine months was 43.14 billion kWh, down 2.54% year-over-year; waste treatment volume rose 6.69%, and gas sales volume increased 46.57%.

• New capacity additions in Q3 included a 667 MW gas turbine, a 40 MW solar project, and an 8 MW waste-to-energy project.

Financial highlights

• Q3 basic and diluted EPS were ¥0.0409, down 78.71% year-over-year; YTD EPS was ¥0.3809, down 32.24%.

• Operating cash flow for the first nine months was ¥7.45 billion, up 10.27% year-over-year.

• Gross margin and operating profit margin declined due to higher costs and lower power generation.

• Non-recurring gains for the first nine months totaled ¥93.37 million, mainly from government subsidies and financial asset fair value changes.

Outlook and guidance

• Management expects continued growth in the environmental and gas segments, supported by policy incentives and capacity expansion.