Zhi Tong Cai Jing·2025-08-18 09:08Group 1 - The core viewpoint of the article is that China Shenhua (601088)(01088) has announced the acquisition of assets from its controlling shareholder, China Energy Group, with a total book value of 90.5 billion RMB by the end of Q2 2025 [1] - The estimated net profit attributable to the company for 2024, excluding special items and impairments, is projected to be 8.3 billion RMB, while for Q1 2025, it is expected to be 1.3 billion RMB [1] - The company plans to distribute an interim dividend of no less than 75% of its first-half profit, which is seen as a way to reassure investors [1] Group 2 - The stock price of the company has increased by approximately 10% two weeks after the acquisition announcement, leading the bank to suggest that investors consider taking profits at this stage [1] - The acquisition funding will come from issuing A-shares to the parent company, using cash reserves, and issuing new A-shares to investors, with an estimated issuance of 2.438 billion A-shares, expanding the total share capital by 12.3% [1] - Due to the decline in coal prices, some of the acquired assets have shown a deterioration in profitability in Q1 this year, with Shenhua Coal Liquefaction reporting a loss [1]