PJRC(SH:600395) Zheng Quan Zhi Xing·2025-08-26 11:49Core Viewpoint - The report highlights that Panjiang Coal Industry Co., Ltd. has turned a profit in Q2 2025 after a significant decrease in coal costs, despite a net loss in the first half of the year. The company is rated as a buy due to its improving financial performance and growth potential in the coal and power sectors [1]. Financial Performance - In H1 2025, the company achieved operating revenue of 5.152 billion yuan, a year-on-year increase of 27.34%. However, it reported a net loss attributable to shareholders of 5.0951 million yuan, compared to a net profit of 372.748 million yuan in the same period last year [2]. - In Q2 2025, the company recorded a net profit of 994.768 million yuan, a year-on-year increase of 523.69%, marking a turnaround from the previous quarter [2][3]. Production and Sales - In H1 2025, the company’s coal production reached 5.1537 million tons, a year-on-year increase of 15.27%, while coal sales volume decreased by 3.1% to 3.9471 million tons. The average selling price per ton of coal was 648.79 yuan, down 22.34% year-on-year [2]. - In Q2 2025, coal production was 2.9738 million tons, up 22.19% year-on-year and 36.42% quarter-on-quarter. Coal sales volume was 2.2586 million tons, reflecting a year-on-year increase of 3.94% and a quarter-on-quarter increase of 33.76% [3]. Cost and Profitability - The average revenue per ton of coal in Q2 2025 was 631.47 yuan, down 19.44% year-on-year and 6.02% quarter-on-quarter. The cost per ton of coal was 451.53 yuan, down 27.78% year-on-year and 24.21% quarter-on-quarter [3]. - The gross profit per ton of coal was 179.94 yuan, a year-on-year increase of 13.46% and a quarter-on-quarter increase of 136.22%. The gross profit margin was 28.50%, up 8.26 percentage points year-on-year and 17.16 percentage points quarter-on-quarter [3]. Power Generation - In H1 2025, the company’s power generation reached 71.13 billion kWh, a year-on-year increase of 380.01%. The on-grid electricity volume was 66.90 billion kWh, also up 375.23% [4]. - In Q2 2025, power generation was 34.44 billion kWh, a year-on-year increase of 273.06%, while the on-grid electricity volume was 32.28 billion kWh, up 267.04% [4]. Investment Outlook - The company is expected to achieve net profits of 236 million yuan, 305 million yuan, and 356 million yuan for 2025, 2026, and 2027 respectively, with corresponding earnings per share (EPS) of 0.11, 0.14, and 0.17 yuan [4].