SCC(SH:600740) Minsheng Securities·2024-07-10 08:00Investment Rating - The report maintains a "Cautious Recommendation" rating for Shanxi Coking Coal (600740.SH) [2][3] Core Views - The company's main business in coking coal is under pressure, with investment income declining year-on-year. The forecasted net profit attributable to the parent company for the first half of 2024 is expected to be between 1.44 billion to 1.94 billion yuan, a decrease of 78.78% to 84.23% compared to the same period last year [10] - The chemical products prices have increased, with notable rises in asphalt (up 19.1% year-on-year), industrial naphthalene (up 13.48%), methanol (up 7.25%), carbon black (up 12.81%), and pure benzene (up 28.48%) [2] - The company is projected to have a net profit of 5.32 billion, 9.54 billion, and 16.04 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 0.21, 0.37, and 0.63 yuan [2] Financial Summary - The total operating revenue for 2023 is reported at 8,749 million yuan, with a forecasted decline to 7,699 million yuan in 2024, followed by slight increases in subsequent years [11] - The net profit attributable to the parent company is expected to drop from 1,275 million yuan in 2023 to 532 million yuan in 2024, with a significant decrease in growth rate [11] - The company’s PE ratio is projected to be 18 for 2024, decreasing to 10 in 2025 and 6 in 2026, indicating a potential undervaluation in the coming years [11]