智通财经网·2025-08-18 09:12Core Viewpoint - China Shenhua (01088) announced the acquisition of assets from its controlling shareholder, China Energy Group, with a total book value of RMB 90.5 billion by the end of Q2 2025 [1] Group 1: Financial Performance - The net profit attributable to the company, excluding special items and impairments, is projected to be RMB 8.3 billion for 2024, and RMB 1.3 billion for Q1 2025 [1] - The company plans to distribute a mid-term dividend of no less than 75% of its first-half profit, which is estimated to be RMB 1 per share, resulting in a dividend yield of 2.9% [1] Group 2: Market Reaction - Following the acquisition announcement, the company's stock price has increased by approximately 10% over the two weeks [1] - The investment bank maintains a target price of HKD 32.18 for the H-shares and recommends investors to take profits at this stage, rating the stock as "Hold" [1] Group 3: Acquisition Details - The funding for the acquisition will come from issuing A-shares to the parent company, using cash reserves, and a private placement to investors [1] - It is estimated that 2.438 billion A-shares will be issued, leading to a 12.3% expansion of the total share capital [1] - The acquisition may slightly dilute earnings per share in the short term, but the commitment to a 75% dividend payout is seen as a reassurance to investors [1] Group 4: Operational Challenges - The decline in coal prices has negatively impacted the profitability of some acquired assets, with Shenhua Coal Liquefaction reporting a loss in Q1 [1]