Xin Lang Cai Jing·2025-08-24 06:31Core Viewpoint - The company reported its first half performance, showing a decline in revenue and net profit year-on-year, but overall results met expectations. The company is increasing its dividend payout, indicating strong shareholder returns potential in the coal sector [1][5]. Group 1: Financial Performance - The company achieved an operating revenue of 74.436 billion yuan, a year-on-year decrease of 19.95% [1]. - The net profit attributable to shareholders was 7.705 billion yuan, down 21.28% year-on-year, aligning closely with the forecast of 7.732 billion yuan [1]. - The company plans to implement a mid-year dividend for 2025 with a payout ratio of 28.57%, distributing 0.17 yuan per share, reflecting a commitment to shareholder returns [1]. Group 2: Coal Business Operations - In the first half of 2025, the company produced 67.34 million tons of commodity coal, a year-on-year increase of 1.3%, while sales volume decreased by 3.6% to 128.68 million tons [2]. - Despite a decline in overall coal sales, self-produced coal sales increased by 1.4% to 67.11 million tons [2]. - The company produced 2.988 million tons of coal chemical products, up 2.1% year-on-year, and sold 3.166 million tons, an increase of 2.7% [2]. Group 3: Cost Management and Resource Reserves - The company reduced its unit sales cost of self-produced commodity coal to 262.97 yuan/ton, a decrease of 10.2%, primarily due to reduced safety and maintenance costs [3]. - The gross profit margin only declined by 1.8 percentage points to 23.7%, demonstrating strong profitability resilience despite falling coal prices [3]. - The company has coal reserves of 13.8 billion tons, supporting nearly 100 years of mining, with new projects expected to add significant capacity by the end of 2026 [3]. Group 4: Market Outlook - Domestic coal production in July decreased by 3.8% year-on-year, while cumulative production from January to July showed a positive growth of 3.8% [4]. - Coal imports in July were 25.986 million tons, down 26.52% year-on-year, indicating tightening domestic supply [4]. - As of August 22, coal prices at Qinhuangdao port reached 707 yuan/ton, recovering 15% from a low of 615 yuan/ton in June, suggesting potential support for coal prices [4]. Group 5: Profit Forecast and Valuation - The company maintains its net profit forecasts for 2025-2027 at 15.85 billion, 18.11 billion, and 18.55 billion yuan respectively [5]. - The dividend rate for 2025 is expected to increase, reflecting a stable cash flow and high dividend yield potential [5]. - The target price for A-shares has been raised to 15.24 yuan, with a corresponding target price for H-shares set at 13.39 HKD, based on recent market performance [5].