Investment Rating - The investment rating for the coal mining industry is "Positive" [2] Core Views - The report indicates that the coal industry is at the beginning of a new upward cycle, with a favorable combination of fundamentals and policies, making it a good time to invest in the coal sector [11][12] - The report highlights a significant increase in coal prices, with Qinhuangdao port's Q5500 coal price reaching 717 CNY/ton, up 24 CNY/ton week-on-week, driven by optimistic market expectations post-holiday and reduced supply from major coal-producing regions [11][30] - The report emphasizes the ongoing supply-demand balance in the short term, with a medium to long-term supply gap expected to persist, reinforcing the investment logic in coal assets [11][12] Summary by Sections 1. Coal Price Tracking - As of February 13, the market price for Qinhuangdao port's Q5500 coal is 717 CNY/ton, reflecting a week-on-week increase of 3.5% [6][30] - International coal prices have also risen, with Newcastle's FOB price for Q5500 coal at 81.5 USD/ton, up 6.5% week-on-week [6][30] 2. Coal Supply and Demand Tracking - The capacity utilization rate for sample thermal coal mines is 84.4%, down 3.1 percentage points week-on-week, while the utilization rate for coking coal mines is 81.39%, down 5.3 percentage points [11][49] - Daily coal consumption in inland provinces decreased by 10% week-on-week, while coastal provinces saw an 18.8% decline [11][50] 3. Coal Inventory Situation - Coal inventory in inland provinces increased by 1.854 million tons week-on-week, while coastal provinces saw a smaller increase of 0.235 million tons [50] 4. Investment Recommendations - The report suggests focusing on stable and high-performing companies such as China Shenhua, Shaanxi Coal, and others, while also considering companies with high elasticity like Yanzhou Coal and others [12]

Project Positioning and Planning - The company announced the full production of the Lanzhou New Area 2×350MW supercritical coal-fired power heating unit on January 9, 2026, marking a breakthrough in the coal-electricity integration strategy. The project is expected to achieve full-load operation within 3 months and reach design capacity within 6 months, with an annual electricity generation of approximately 3.302 billion kWh and a heating capacity of 13.6241 million GJ [1]. Project Advancement - The Qinyang 2×660MW coal power project and the Lanzhou New Area 2×1000MW thermal power project are still under construction, with the latter having completed preliminary design and entering a substantial phase of development. These projects are expected to further enhance the scale of the power business. In the chemical sector, the first phase of the Liu Hua Chemical clean and efficient gasification project has begun trial production and yielded qualified products, while the second phase is under construction, producing products such as synthetic ammonia and urea [2]. Convertible Bond Termination - The company has a convertible bond balance of 1.946 billion yuan, which is set to mature on December 9, 2026. Management has indicated plans to advance the conversion work and fulfill related obligations, which may impact the company's capital structure [3]. Strategic Advancement - The company plans to replicate the coal-electricity integration model in other parks within Gansu Province and explore a complementary system of "thermal power + new energy," such as distributed photovoltaics. Additionally, it aims to extend into comprehensive energy services, including electricity trading agency and energy-saving renovations [4]. Institutional Research - In early February 2026, institutions such as Fuanda Fund conducted research on the company, focusing on coal quality improvement, power business operations, and project progress, reflecting market tracking of the transformation effectiveness [5]. Dividend Policy - The company commits to maintaining a stable cash dividend policy for the next three years, continuing a record of 17 consecutive years of dividends [6].

Group 1 - The company is actively promoting the construction and operation of coal, electricity, and chemical projects, and is raising project construction funds in phases [2] - The company employs multiple strategies to secure project funding, primarily relying on traditional credit, supplemented by capital market financing, and attracting strategic investors [2] - The company has established good cooperative relationships with commercial banks, especially local banking institutions, ensuring smooth financing channels [2] Group 2 - The credit policies of national policy banks and commercial banks are relatively loose, with lower interest costs [2] - Ongoing project completions are providing the company with a certain level of financial support [2]

Core Viewpoint - Gansu Energy Chemical (000552) is focusing on deep mining operations in its old mining areas, which have higher extraction costs, while implementing smart mining initiatives to reduce costs and improve efficiency [1] Group 1: Cost Management - The company is enhancing its budget management and strengthening operational cost assessments to achieve cost reduction and efficiency improvement [1] - There is an emphasis on increasing the use of technology to reduce manpower in mining operations [1] Group 2: Safety Measures - The company plans to strengthen safety training in accordance with the newly issued "Coal Mine Safety Regulations" [1] - There will be a focus on risk assessment and management, particularly in critical areas, to ensure effective safety management throughout the production process [1]

Core Viewpoint - Gansu Energy Chemical (000552) primarily sells coal at the pit head, with thermal power companies being the largest customers for thermal coal sales through long-term contracts [1] Group 1: Market Conditions - The coal market is expected to show a relaxed trend in 2025, with insufficient downstream demand leading to a downward trend in coal prices [1] - Both coal sales volume and prices are projected to decline, increasing operational pressure on the company [1] Group 2: Strategic Adjustments - In 2026, the company plans to stabilize its market position while enhancing communication with railway operators and actively developing new surrounding markets [1] - The company aims to adjust its coal sales structure based on market demand and increase sales efforts [1]

Group 1 - The core project of Qingyang Coal Power Company involves the construction of two 660MW ultra-supercritical air-cooled coal-fired generating units, with a designed annual electricity generation capacity of 7 billion kWh [2] - The project is currently progressing smoothly according to the construction schedule [2] - The Lanzhou New Area project consists of two 1000MW units, with preliminary design review completed and foundation compaction work finished [2]

Group 1 - The company, Gansu Energy Chemical, stated that it sells coal from its power plants and chemical plants based on market principles, signing long-term contracts annually to regulate overall coal sales and inventory structure [2] - The internal coal consumption of the company's power and chemical projects, once operational, will be nearly 12 million tons per year, with actual consumption varying based on the quality of coal received and the structure of coal sources for consuming enterprises [2]

Group 1 - The company Gansu Energy Chemical primarily produces coking coal and thermal coal, with its subsidiaries offering high-quality environmentally friendly low-ash, low-sulfur, and high-calorific value coking coal [2] - The Jingtai Coal Industry focuses on a mix of coking coal and gas coal, while the Tianzhu Coal Industry mainly produces gas coal, with some high-calorific value clean coal and silicon coal used as a reducing agent in industrial silicon production [2] - The remaining mines mainly produce thermal coal, characterized by non-caking coal with some weak caking and long flame coal, which has low sulfur, low ash, low phosphorus, and high calorific value, making it suitable for various industries including power, chemical, metallurgy, and building materials [2]

Core Viewpoint - Gansu Energy and Chemical has 11 pairs of coal production mines with an approved annual capacity of 23.14 million tons, indicating a significant operational scale in the coal industry [2]. Group 1: Company Operations - The company currently has an approved annual production capacity of 23.14 million tons, which includes a reserve capacity of 1.8 million tons per year [2]. - The Tianbao Hongshaliang mine is under construction, while the Jingtai Baiyanzi mine and the Hongshaliang open-pit mine have completed acceptance and are now in formal production [2].

Group 1 - The core viewpoint of the article highlights that Gansu Energy Chemical is progressing with its clean and efficient gasification project, with phase one already producing qualified products and phase two under smooth construction [1] - The project utilizes coal as a raw material to produce various products including synthetic ammonia, urea, liquid ammonia, methanol, liquid carbon dioxide, and melamine, with the actual product structure adjustable based on market demand and profitability [1]