Sunpower Group (5GD) Q3 2024 earnings summary

Executive summary

• Steam sales volume increased 10.2% YoY to 8.21 million tons in 9M2024, driven by ramp-up of GI projects and strong market demand.

• GI recurring revenue rose 1.3% YoY to RMB2,404.5 million, supported by higher steam sales and price adjustment mechanisms.

• Excluding a one-off bad debt provision, GI recurring PATMI grew 6.1% YoY to RMB270.3 million; including the provision, PATMI was RMB190.2 million, down 25.4% YoY.

• Sunpower is recognized for ESG leadership, winning multiple awards for green and low-carbon development.

• Operating cash flow from GI business increased 48.7% YoY to RMB283.6 million.

Financial highlights

• 9M2024 revenue: RMB2,486.3 million (up from RMB2,408.7 million in 9M2023).

• Gross profit: RMB658.0 million (9M2024), up from RMB604.9 million (9M2023).

• EBITDA: RMB633.6 million (9M2024), down from RMB675.1 million (9M2023); GI recurring EBITDA (excluding provision): RMB779.5 million (+9.8% YoY); including provision: RMB664.8 million (-6.3% YoY).

• Net profit: RMB257.5 million (9M2024), down from RMB286.8 million (9M2023).

• Net cash from operating activities: RMB234.3 million (9M2024), up from RMB140.8 million (9M2023).

Outlook and guidance

• Continued ramp-up of existing GI plants, completion of new projects, and customer base expansion expected to drive growth in FY2024.

• Focus on optimizing feedstock procurement, price adjustment mechanisms, and operational efficiency.

• Emphasis on less capital-intensive expansion and refined management to enhance profitability.

• Construction of Quanjiao Project's biomass boiler completed in 3Q2024, trial production expected in 4Q2024.

• Exploring new business opportunities and maintaining a disciplined investment strategy.