GANSU EC(SZ:000552) GOLDEN SUN SECURITIES·2024-06-25 06:02Investment Rating - The report assigns a "Buy" rating for the company for the first time [2]. Core Views - The company is positioned as a leading coal enterprise in Gansu, focusing on an integrated strategy of "coal-electricity joint operation and coal-chemical co-production" [16][21]. - The company has significant growth potential in both coal and electricity sectors, with expectations for performance and valuation to improve [12]. Summary by Sections Company Overview - Gansu Energy Chemical Co., Ltd. was renamed from Gansu Jingyuan Coal and Electricity Co., Ltd. in 2022, following the acquisition of the entire equity of the Kexie Coal and Electricity Group [16]. - The company operates coal mining and sales, with production areas in Gansu Province, and has a complete coal production, supply, and sales system [16]. Financial Performance - As of June 24, 2024, the company's total market value is approximately 17,125.74 million yuan, with a closing stock price of 3.20 yuan [2]. - The company’s projected revenue for 2024 is 13,235 million yuan, with a net profit forecast of 2,326 million yuan [60]. Coal Business - The company plans to increase its coal production capacity to 29 million tons by 2025, with ongoing projects expected to contribute significantly to output [27]. - The average selling price of self-produced coal is expected to rise, with projections of 511 yuan/ton in 2024, increasing to 564 yuan/ton by 2026 [60]. Electricity Business - The company has an installed power generation capacity of 809 MW, with ongoing projects expected to enhance this capacity significantly [7]. - The electricity sales volume reached 3.78 billion kWh in 2023, with a unit selling price of 0.39 yuan/kWh [51]. Chemical Business - The company has a total annual production capacity of 1.15 million tons in chemical products, with plans to expand this to 3 million tons by 2025 [7]. - The profitability of the urea business is strong, with market prices rebounding to 2,350-2,400 yuan/ton, enhancing the company's competitive edge [43]. Strategic Positioning - The company benefits from a favorable location in Gansu Province, which has abundant coal resources and is positioned to meet the growing energy demands of the central and eastern regions of China [30]. - The company is actively pursuing both organic growth and strategic acquisitions to enhance its coal production capacity and market position [27].