Shaanxi Heimao(SH:601015) Tai Mei Ti A P P·2025-04-21 04:27Core Viewpoint - The performance of Shaanxi Black Cat in 2024 reflects a significant decline in revenue and profit, aligning with the overall downturn in the coking industry, driven by weak demand from the construction and real estate sectors [2][3]. Company Performance - Shaanxi Black Cat reported a total revenue of 14.58 billion yuan in 2024, a year-on-year decrease of 21.58%, and a net loss attributable to shareholders of 1.158 billion yuan [2]. - The company’s strategic execution and cost control during the industry downturn are critical for assessing its future potential [2]. Industry Background - The coal, coke, and steel market faced a weak operational year in 2024, with a lack of effective price support and a loose supply-demand balance for coke [3][4]. - Since the fourth quarter of 2024, coke prices have been on a downward trend, with a total decline of nearly 500 yuan per ton by April 2025 [3]. Supply and Demand Metrics - The average price of Hebei premium first-grade coke decreased from 2,264 yuan per ton in 2023 to 1,898 yuan per ton in 2024, a drop of 16.2% [4]. - Coke production capacity increased by 1.95% to 678 million tons, while production volume slightly decreased by 1-3% to 48.767 million tons [4]. - The social inventory of coke rose by 12.7% to 966.6 thousand tons, indicating a supply surplus [4]. Strategic Initiatives - Shaanxi Black Cat is focusing on optimizing production loads and coal blending ratios to reduce costs, while also enhancing operational management and safety measures [6][8]. - The company has completed upgrades to its coking processes, which are expected to lower raw material costs and improve efficiency [7]. - Ongoing projects in Inner Mongolia and Xinjiang are progressing, with a new LNG project expected to stabilize profits upon completion [7]. Long-term Perspective - The current losses reflect cyclical fluctuations in the coking industry, but the company's strategic positioning and resource utilization may provide a unique economic advantage [9]. - Shaanxi Black Cat has invested approximately 1.08 billion yuan in dry quenching projects, enhancing its core competitiveness and sustainable development capabilities [9]. - The company's major shareholder has increased their stake by acquiring 32.79 million shares, signaling confidence in the company's long-term value [9]. Conclusion - Balancing short-term challenges with long-term value creation will be crucial for Shaanxi Black Cat and the coking industry, as investments in capacity expansion and cost management may lay the groundwork for future recovery [10].