lu'an EED(SH:601699) Zheng Quan Zhi Xing·2025-08-01 16:36Core Viewpoint - The credit rating of Shanxi Lu'an Environmental Energy Development Co., Ltd. is rated AAA with a stable outlook, reflecting its advantages in coal types, low financial leverage, and strong external support from shareholders [3][4]. Company Overview - Shanxi Lu'an Environmental Energy Development Co., Ltd. was established on July 19, 2001, and is primarily engaged in coal mining and coal chemical business. The company was listed on the Shanghai Stock Exchange in September 2006 [7]. - As of March 2025, the company had total assets of 948.06 billion yuan and total liabilities of 455.83 billion yuan, indicating a low debt level [4][25]. Financial Performance - In 2024, the company achieved total operating revenue of 358.50 billion yuan, with a net profit of 28.67 billion yuan [4][21]. - The company's operating income from coal mining accounted for over 90% of total revenue, but both revenue and gross profit margin have been declining since 2022 due to falling coal prices [21][22]. - The company maintains a strong profitability despite the market downturn, with a total profit of 199.11 billion yuan in recent years [21][23]. Operational Strength - The company has a diverse range of coal types, primarily producing spray coal, which is widely used in the steel industry. It holds approximately 15% of the national market share for spray coal [10][11]. - The company has established long-term partnerships with major steel and power companies, ensuring stable sales channels [14]. Industry Context - The coal industry is expected to face challenges in demand growth due to economic transitions and stricter environmental policies, but it remains a crucial part of China's energy security [10]. - The overall coal supply is expected to remain loose, with prices continuing to show weakness in the short term, impacting the profitability of coal enterprises [10][11]. Future Outlook - The company plans to focus its future investments on coal mining, with ongoing projects aimed at increasing production capacity [20]. - The acquisition of exploration rights in Shanxi province is expected to enhance the company's coal resource base [11][20].