Sunpower Group (5GD) Q4 2024 earnings summary

Executive summary

• Steam sales volume increased 9.5% year-over-year to 11.46 million tons in FY2024, driven by the ramp-up of Green Investments (GI) projects.

• GI recurring EBITDA and PATMI excluding a one-off bad debt provision rose 12.4% and 9.5% YoY, respectively; including the provision, EBITDA was flat and PATMI declined 14.1%.

• The business model is supported by exclusive concessions, a diversified customer base across 20+ industries, and a robust pipeline of projects.

Financial highlights

• GI recurring revenue grew 1.7% YoY to RMB3,316.5 million in FY2024.

• GI recurring EBITDA (excluding bad debt provision) reached RMB1,062.2 million (+12.4% YoY); PATMI (excluding provision) was RMB372.1 million (+9.5% YoY).

• Including the one-off bad debt provision, EBITDA was RMB942.7 million (-0.2% YoY) and PATMI was RMB292.0 million (-14.1% YoY).

• GI recurring operating cashflow increased 28.5% YoY to RMB678.2 million.

Outlook and guidance

• Continued ramp-up of existing GI plants expected in FY2025, driven by closure of small boilers, customer expansion, and industrial park development.

• Focus on leveraging AI, optimizing procurement, and cost reduction to solidify profitability.

• Exploring new business opportunities and economies of scale in the medium to long term.