SHCI(SH:601225) Ge Long Hui·2025-11-24 06:55Core Viewpoint - Shaanxi Coal Industry reported a net profit attributable to shareholders of 12.71 billion yuan for Q1-Q3 2025, a year-on-year decrease of 27.22% [1] Financial Performance - Q3 net profit attributable to shareholders was 5.07 billion yuan, showing a year-on-year decrease of 26.59% but a quarter-on-quarter increase of 79.08% [1] - The average price of Yulin pithead thermal coal in Q3 was 626.9 yuan/ton, reflecting a quarter-on-quarter increase of 6.95% [1] Market Dynamics - Recent recovery in coal prices is evident, supported by a decrease in production from Xinjiang and imported coal, alongside increased winter storage demand from downstream power plants due to falling temperatures [1] - Strict safety inspections in Q4 are expected to impact coal production, leading to further anticipated increases in coal prices [1] Strategic Advantages - The company is leveraging its "coal-electricity integration" advantage to respond actively to market changes, enhancing its performance through a complete industrial chain from coal mining, washing, transportation, and sales to power generation [1] - The stability of the company's profitability is expected to improve significantly [1] Valuation and Recommendations - Based on Wind's consensus forecast for 2025 and a 60% dividend payout ratio, the current dividend yield is approximately 4.8% as of November 21 [1] - Considering comparable companies and historical valuations, a target price of 27.56 yuan is set with a 13x PE for 2026, maintaining a "strong buy" rating [1]