pingmei coal(SH:601666) Xin Lang Cai Jing·2025-08-31 08:37Core Viewpoint - In the first half of 2025, the company experienced a significant decline in revenue and net profit, primarily due to decreased coal sales and prices, despite effective cost control measures [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 10.1 billion yuan, a year-on-year decrease of 38% [1] - The net profit attributable to shareholders was 260 million yuan, down 82% year-on-year [1] - The weighted average return on equity was 0.97%, a decrease of 4.03 percentage points year-on-year [1] - In Q2 2025, revenue was 4.7 billion yuan, a quarter-on-quarter decline of 13% and a year-on-year decline of 41% [1] - The net profit for Q2 was 110 million yuan, down 30% quarter-on-quarter and 84% year-on-year [1] Group 2: Coal Business Performance - In H1 2025, coal sales and prices decreased, impacting overall performance, although cost control was effective with a 20% year-on-year reduction in coal cost per ton [2] - The company produced 14.53 million tons of raw coal in H1 2025, an increase of 2% year-on-year, while the sales volume of commercial coal was 11.74 million tons, down 13% year-on-year [2] - The unit selling price of commercial coal in H1 2025 was 768 yuan/ton, a decrease of 29% year-on-year [2] - The cost per ton of coal was 619 yuan, down 20% year-on-year, with a gross profit of 149 yuan per ton, a decrease of 53% year-on-year [2] - In Q2 2025, the unit selling price of commercial coal increased to 774 yuan/ton, up 1% quarter-on-quarter [2] - The gross profit per ton of coal in Q2 was 151 yuan, an increase of 2% quarter-on-quarter [2] Group 3: Strategic Developments - The company is implementing a strategy to acquire high-quality coal resources, having acquired 60% of Xinjiang Wusu Sike Tree Coal Co. for 660 million yuan, which has an annual coal production capacity of 1.2 million tons [3] - In October 2024, the company successfully obtained exploration rights for the Tarcheng Baiyanghe Mine with a resource reserve of 1.668 billion tons for 1.748 billion yuan [3] - The ongoing acquisition of quality coal resources is expected to enhance the company's resource continuity and positively impact future performance as new production capacity is gradually released [3] Group 4: Profit Forecast and Investment Rating - The company forecasts revenues of 24.3 billion yuan, 25.5 billion yuan, and 26.9 billion yuan for 2025-2027, with year-on-year changes of -20%, +5%, and +5% respectively [3] - The net profit attributable to shareholders is projected to be 600 million yuan, 1.2 billion yuan, and 1.8 billion yuan for the same period, with year-on-year changes of -75%, +105%, and +50% respectively [3] - The earnings per share (EPS) are expected to be 0.24 yuan, 0.50 yuan, and 0.74 yuan, corresponding to price-to-earnings ratios of 32, 16, and 10 times [3] - The investment rating is maintained at "Accumulate" considering the current stabilization of coking coal prices [3]