Investment Rating - The industry rating is "Buy" [4] Core Viewpoints - The coal sector has experienced a high-level retreat in the first two months of 2025, underperforming the market by 11.8 percentage points. As of March 18, the coal sector has declined by 10.0%, ranking last among all industry indices [4][14] - Domestic coal prices have been weak since the beginning of the year, but have stabilized since March. The average price of thermal coal in Qinhuangdao port is 678 RMB/ton, down 11.4% from the end of 2024 [4][29] - The report suggests that coal prices have a support level at the bottom, and the sector's valuation and dividend advantages are becoming more pronounced [4][38] Summary by Sections 1. Coal Sector Review - The coal sector has underperformed the market, with a cumulative decline of 10.0% as of March 18, 2025, and a ranking of 30 out of 30 among industry indices [4][14] - The sector's performance in the first two months saw thermal coal down 15.5%, coking coal down 11.4%, and coke up 1.4% [4][14] 2. Coal Market Review - Electricity consumption growth has slowed to 1.3% in the first two months, while non-electric demand has improved. Coal imports have also slowed to a growth rate of 1.8% [4][29] - Domestic coal prices have been weak, with thermal coal and coking coal prices declining since the beginning of the year but stabilizing in March [4][29] - International coal prices have dropped by 10-20% since the beginning of the year, with significant declines in high-calorific thermal coal [4][43] 3. Recent Market Dynamics - Port thermal coal prices have slightly decreased, while prices at production sites have generally increased. The report anticipates a gradual recovery in demand due to inventory reductions at power plants [4][38] 4. Industry Perspective - The report indicates that coal prices are expected to stabilize and gradually recover due to a rebound in industrial demand and a slowdown in production growth [4][38] - Key companies highlighted include Shaanxi Coal and China Shenhua, which are expected to maintain stable profitability and high dividends [4][38] 5. Key Companies - The report identifies several companies with strong dividends and stable earnings, including Shaanxi Coal, China Shenhua, and others with lower valuations and potential for growth [4][5]

Core Viewpoints - The coal sector has experienced a high-level retreat in the first two months of 2025, underperforming the market by 11.8 percentage points, ranking last among all industry indices [4][14]. - The coal price is expected to stabilize and gradually recover due to improved industrial demand, slowing production growth, and reduced import expectations [4][29]. Group 1: Coal Sector Review - In the first two months of 2025, the coal sector has declined by 10.0%, ranking 30th out of 30 in the industry indices [4][14]. - The sub-sectors of thermal coal, coking coal, and coke have seen respective declines of 15.5%, 11.4%, and 7.4% in the first two months [14]. - As of March 18, 2025, the coal sector's price-to-earnings (PE) ratio is at 10.4 times, which is at a historical average level, while the price-to-book (PB) ratio is at 1.33 times, also at a historical average [19][23]. Group 2: Coal Market Review - The growth rate of electricity consumption has dropped to 1.3% in the first two months, while non-electric demand has shown overall improvement [4][29]. - Domestic coal prices have been weak since the beginning of the year, with thermal coal prices stabilizing in March [29]. - The import growth rate of coal has decreased to 1.8% in the first two months of 2025 [4][29]. Group 3: Recent Market Dynamics - Port thermal coal prices have slightly declined, while prices in production areas have generally rebounded [4][29]. - The price of thermal coal is expected to stabilize in the short term due to inventory reductions at southern ports and coastal power plants [4][29]. - Coking coal prices have continued to decline, but demand is expected to improve as the spring construction season approaches [4][29]. Group 4: Industry Outlook - The coal price is expected to find support at the bottom, with the sector's valuation and dividend advantages becoming more pronounced [4][29]. - The anticipated average coal price for 2025 may decline, but leading companies are expected to maintain stable profitability due to effective cost control [4][29]. - Key companies with robust dividends include Shaanxi Coal and China Shenhua, while companies with lower valuations and long-term growth potential include Xinji Energy and Yanzhou Coal [4][29].

Investment Rating - The report maintains an "Add" rating for the company [2][8] Core Views - The company benefits from a high proportion of long-term coal contracts, which stabilizes profitability. The average sales price for long-term contracts is expected to remain stable, with a projected price range of 696-710 RMB/ton for 2024 [7][8] - The company has a strong cash flow and a high dividend payout ratio, with an average payout rate of 72% from 2012 to 2023. The company has sufficient cash reserves of 183.5 billion RMB and undistributed profits of 289.7 billion RMB, supporting continued high dividends [7][8] - The company aims to be a leader in the energy revolution and has a strong ESG (Environmental, Social, and Governance) profile, which may provide a premium in market valuation [7][8] Summary by Sections Company Overview - The company primarily engages in coal and electricity production and sales, with a total coal reserve of 336.9 billion tons and a controllable power generation capacity of 44.8 GW as of mid-2024 [18][19] - The company was established in November 2004 and listed on the Hong Kong Stock Exchange in June 2005 and the Shanghai Stock Exchange in October 2007 [18][32] Coal Business - The company has a rich coal resource base, with a recoverable reserve of 153.6 billion tons, allowing for nearly 50 years of production at the current annual output level of 324 million tons [33][34] - The company’s coal production cost is below 200 RMB/ton, and it benefits from a high proportion of long-term contracts, which account for approximately 80% of its coal sales [33][34] Power Business - The company has added 13.4 GW of coal-fired power generation capacity during the "14th Five-Year Plan" period, representing a 43% increase from the end of 2020 [7][8] - The company’s electricity generation has seen rapid growth, with a year-on-year increase of 11% in 2023 and 8% in the first three quarters of 2024 [7][8] Transportation Business - The company operates a comprehensive transportation network that includes railways, ports, and shipping, with a total railway network of 2,408 kilometers and a shipping capacity of approximately 270 million tons per year [19][20] Financial Forecast - The company’s projected net profit for 2024-2026 is expected to reach 58.45 billion, 54.64 billion, and 54.41 billion RMB, respectively, with corresponding EPS of 2.94, 2.75, and 2.74 RMB [8][9]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 承董事會命 中國神華能源股份有限公司 總會計師、董事會秘書 宋靜剛 北京，2025年3月6日 於本公告日期，董事會成員包括執行董事呂志韌先生及張長岩先生，非執行董事 康鳳偉先生及李新華先生，獨立非執行董事袁國強博士、陳漢文博士及王虹先 生，職工董事焦蕾女士。 （在中華人民共和國註冊成立的股份有限公司） （股份代碼：01088） 董事會召開通知 中國神華能源股份有限公司（「本公司」）董事會（「董事會」）謹此公佈，本公司將 於2025年3月21日於北京舉行董事會會議，藉以審議並（如認為適當）批准本公司 截至2024年12月31日止年度之年度業績公告事宜及建議支付股息事宜。 ...

承中国神华能源股份有限公司董事会命 总会计师、董事会秘书 宋静刚 2025 年 3 月 7 日 中国神华能源股份有限公司 关于子公司完成内蒙古新街台格庙矿区新街一井、 新街二井项目开工备案的公告 中国神华能源股份有限公司董事会及全体董事保证本公告内容不存在任何 虚假记载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承 担法律责任。 近日，中国神华能源股份有限公司（"本公司"）持有 60%股权的控股子公 司神华新街能源有限责任公司（"新街能源公司"），收到内蒙古自治区伊金霍 洛旗能源局关于内蒙古新街台格庙矿区新街一井及选煤厂项目、新街二井及选煤 厂项目开工备案回执。根据回执，新街能源公司报送的项目审批文件及施工单位、 监理单位资料齐全，予以备案。 自此，新街能源公司将依法合规、积极有序推进新街一井、新街二井项目开 工建设工作。本公司将按照证券监管要求履行项目后续相关信息披露义务。 特此公告。 证券代码：601088 证券简称：中国神华 公告编号：临 2025-011 ...

Summary of China Shenhua's Conference Call Company Overview - **Company**: China Shenhua Energy Company Limited - **Industry**: Coal and Power Generation Key Points and Arguments Financial Performance - **2024 Net Profit Forecast**: Expected to be between 57-60 billion yuan, reflecting a year-on-year decline of 4.5% to slight growth, primarily due to falling coal prices [2][3] - **Dividend Policy**: The company has increased its minimum dividend payout ratio for the next three years to no less than 65% to alleviate shareholder anxiety [2][5] Market Dynamics - **Coal Price Trends**: The company anticipates that the central price of coal will remain stable in 2025, with demand growth projected at 6-7% [2][9] - **Sales and Production**: January sales volume decreased by 8.5% year-on-year, but overall performance is expected to remain stable due to long-term energy demand growth [6][11] Strategic Initiatives - **Acquisition**: China Shenhua acquired 100% of Hanjin Energy for 850 million yuan, increasing its recoverable reserves by over 2 billion tons, showcasing resilience and effective governance [2][5] - **Operational Adjustments**: The company is enhancing its business model through "coal-electricity-transportation-port-integration" to strengthen risk resistance [8] Industry Outlook - **Coal Pricing Mechanism**: The pricing mechanism is influenced by long-term agreements, which help mitigate market volatility. The price has risen from 535 yuan/ton in 2017 to 675 yuan/ton in 2021 due to demand growth and supply constraints [10][22] - **Future Challenges**: The coal and power industry faces challenges from economic slowdown and increasing renewable energy share, but coal will still play a significant role in energy consumption through 2030 [12][13] Investment Considerations - **Investor Sentiment**: There are concerns regarding the impact of falling coal prices on long-term contracts, but the company believes that stable pricing will support innovation and healthy industry development [22] - **Stock Performance**: Recent stock price fluctuations have drawn attention from H-share investors, who are closely monitoring the company's operational status [23] Project Developments - **Taran Highler Mine**: Construction is set to resume in 2023, with an expected completion date in 2028, reflecting a cautious yet strategic approach to project management [4][20] - **Taiqian Blast Furnace**: This critical infrastructure project is being approached with a focus on quality and stability, with a projected completion date of 2028 [21] Risk Management - **Inventory Management**: High inventory levels are maintained to mitigate risks from demand fluctuations, although excess inventory can lead to financial strain [18][19] - **Coal Supply Stability**: The company emphasizes the importance of long-term contracts to ensure stable coal supply, even amidst price fluctuations [22] Additional Important Insights - **Electricity Pricing**: The company is adapting to regional electricity price changes, particularly in coastal provinces, to maintain profitability [11] - **Regulatory Environment**: The government is enhancing overseas resource supply capabilities, which may impact import strategies for coal [17] This summary encapsulates the key insights from the conference call, highlighting China Shenhua's financial outlook, strategic initiatives, market dynamics, and industry challenges.

Summary of Conference Call Company and Industry - The conference call pertains to China Shenhua Energy Company, a major player in the coal and energy sector in China. Key Points and Arguments Financial Performance - The company disclosed a profit forecast for 2024, estimating net profit between 57 to 60 billion yuan, indicating a year-on-year decline of 4.5% to an increase of 0.5% [1] - A provision of 3 billion yuan has been reserved for accounting and audit adjustments due to the complexity of consolidating financials from numerous subsidiaries [1] - The decline in profit is primarily attributed to a decrease in average coal sales prices and reduced asset impairment losses compared to previous years [2] Shareholder Returns - The board approved a shareholder return plan for 2025 to 2027, increasing the minimum cash dividend payout ratio from 60% to 65% of net profit [3] - The company aims to signal its commitment to long-term shareholders and those focused on dividend income, amidst a backdrop of increasing market demands for higher returns [3] Operational Updates - January operational data showed an 8.5% year-on-year decline in coal production and a double-digit decrease in sales, attributed to the timing of the Spring Festival and warmer winter temperatures [4] - The company anticipates stable production and sales plans for 2024, with no significant changes expected compared to previous years [5] Market Dynamics - The coal market has experienced fluctuations, with prices stabilizing around 850 to 860 yuan per ton, but a significant drop was noted in December due to supply-demand shifts [6][7] - The company expects coal imports to remain high, with a potential increase in supply from Mongolia and Russia [8] Cost Management - The company has seen a trend of increasing production costs due to deeper mining operations and labor outsourcing, but recent cost control measures have shown positive results [16] - Future cost growth is expected to be in the single digits, influenced by declining raw material costs and improved operational efficiencies [17] Regulatory Environment - The National Development and Reform Commission has adjusted long-term coal supply agreements, allowing companies to sell a higher proportion of spot coal, which may improve sales structure [18][19] Future Outlook - The company is preparing for potential challenges in 2025, particularly regarding electricity pricing and its impact on profitability [20][21] - The construction of new projects, such as the Xinjie coal mine, is progressing, with production expected to commence in 2028 [30] Strategic Initiatives - The company is exploring opportunities in the Mongolian coal market and is involved in negotiations to secure long-term resource agreements [31] - Investments in infrastructure and operational improvements are ongoing to enhance competitiveness in the energy market [32] Additional Important Information - The company plans to disclose its annual performance report on March 21, which will provide more detailed financial data and operational insights [1][12] - The management emphasized the importance of maintaining communication with long-term investors and adapting to market changes to ensure sustainable growth [11][26]

Core Viewpoint - China Shenhua has completed the acquisition of 100% equity of Hangjin Energy from China Energy Group for a consideration of 853 million yuan, aiming to reduce industry competition and enhance resource reserves [1][2]. Group 1: Transaction Details - The acquisition price for Hangjin Energy is based on the assessed value of the company's total equity as of August 31, 2024, amounting to 853 million yuan, which will be paid using the company's own funds [1]. - Following the payment, China Shenhua will own all shareholder rights and obligations related to Hangjin Energy, while China Energy Group will no longer hold any rights to the equity [1]. Group 2: Strategic Rationale - A significant reason for this transaction is to reduce competition within the same industry, as Hangjin Energy is included in the competitive assets outlined in the agreement between China Shenhua and China Energy Group [2]. - The acquisition is expected to enhance the company's resource reserves, consolidating its competitive advantage in the market [2]. Group 3: Resource and Capacity Enhancement - Hangjin Energy and its subsidiaries include one under-construction coal mine (Taran Gaole Mine) and three operational coal mines (Yannan Mine, Zhanir River Open-pit Mine, and Mindong No. 1 Mine), along with a coal-fired power plant with two 600MW units [2][3]. - The Taran Gaole Mine has a total area of 227.25 square kilometers, with an assessed recoverable resource of 2.054 billion tons and a recoverable reserve of 1.050 billion tons, with a certified capacity of 10 million tons per year [3]. - Following the acquisition, China Shenhua anticipates an increase of 3.841 billion tons in coal resources and 2.087 billion tons in recoverable reserves, representing 11.40% and 13.59% of the company's total resources and reserves as of June 2024, respectively [4]. Group 4: Future Outlook - The Taran Gaole Mine is expected to be completed by 2028 and reach full production by 2029, while the coal-fired power plant has a power generation license valid until December 25, 2033 [4]. - The transaction is projected to enhance China Shenhua's supply capabilities in the Inner Mongolia region, reinforcing its competitive position and supporting its role as a coal business integration platform for China Energy Group [5].

证券代码：601088 证券简称：中国神华 公告编号：临 2025-008 中国神华能源股份有限公司 关于收购国家能源集团杭锦能源有限责任公司 100%股权的关联交易进展公告 中国神华能源股份有限公司董事会及全体董事保证本公告内容不存在任何 虚假记载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承 担法律责任。 经中国神华能源股份有限公司（"本公司"）第六届董事会第六次会议批准， 本公司与国家能源投资集团有限责任公司（"国家能源集团公司"）于 2025 年 1 月 24 日签署了《关于国家能源集团杭锦能源有限责任公司股权转让协议》（"《股 权转让协议》"），约定本公司以经备案的国家能源集团杭锦能源有限责任公司 （"杭锦能源"）截至评估基准日（即 2024 年 8 月 31 日）的股东全部权益评估 值为基础，收购国家能源集团公司持有的杭锦能源 100%股权（"标的股权"）。 详见本公司分别于 2025 年 1 月 22 日、2025 年 1 月 25 日在上海证券交易所网站 （www.sse.com.cn）披露的《中国神华关于收购国家能源集团杭锦能源有限责任 公司 100%股权的关联交易公告》《中 ...

Summary of China Shenhua's Conference Call Company Overview - **Company**: China Shenhua Energy Company - **Industry**: Coal and Power Generation Key Points and Arguments Operational Performance - In 2024, China Shenhua achieved a coal production of 327 million tons, a year-on-year increase of 0.8% [3] - Coal sales reached 459 million tons, up 2.1% year-on-year [3] - Power generation was 223.2 billion kWh, reflecting a 5.2% increase [3] - Electricity sales amounted to 210.28 billion kWh, with a year-on-year growth of 5.3% [3] - The company expects net profit attributable to shareholders for 2024 to be between 57 billion to 60 billion yuan, indicating a year-on-year decline of 4.5% to a growth of 0.5% [3] Acquisitions and Resource Expansion - China Shenhua acquired 100% of Hanjin Energy for 850 million yuan, adding over 3.8 billion tons of coal reserves and increasing recoverable reserves by 2 billion tons [3] - The acquisition will also add 10 million tons of under-construction coal mines and 15.7 million tons of operational coal mines [3] Cost Management - The company anticipates a moderate single-digit growth in unit production costs in the coming years due to factors such as deflation, reduced safety costs, and transitioning from outsourcing to in-house operations [3][5] - Cost growth in recent years was primarily driven by inflation, increased mining depth, and rising labor costs [5] Production Capacity and Future Outlook - Current normal production capacity is approximately 340 million tons, with actual production around 316 million tons [3][6] - An additional capacity of about 15 million tons is expected in 2025, with long-term projects like the Hangjinta Lan coal mine projected to start production in 2028 [6] - The company aims to maintain a production scale of 320 to 330 million tons despite potential declines in individual mines [7][8] Market Challenges and Strategies - The short-term coal market may face price declines due to high inventory levels at power plants and seasonal demand drops, but long-term support is expected from the spot market [3][23] - China Shenhua is focusing on cost reduction and efficiency improvements to counteract competitive pressures and market fluctuations [11][13] Electricity Sector Insights - The company has made significant investments in thermal power technology, with over half of its capital expenditure in recent years directed towards this area [11] - Despite a slowdown in economic growth affecting energy demand, the company remains optimistic about future energy needs driven by GDP growth [24] Coal Market Dynamics - The proportion of thermal power in energy supply has decreased from 60%-70% to an expected 55%-56% by 2025, but it will still play a crucial role in coal demand [25] - Coal prices have seen significant fluctuations, with current prices around 700 yuan per ton, down from historical highs, but still attractive for low-cost producers [26] Future Projects and Developments - The Ganjimao cross-border railway project is expected to contribute to coal supply, although specific figures are yet to be disclosed [28] - The company plans to incorporate the 4 million tons of resources from Hushitai Jingtian into its development plans once evaluation conditions are met [18] Additional Important Information - The company is actively exploring mergers and acquisitions to bolster its production capabilities and maintain stability in supply [6][7] - The integration of coal mining and power generation operations is a strategic focus to enhance overall business resilience [13]