XINJI ENERGY(SH:601918) Guotou Securities·2024-08-01 02:30Investment Rating - The report assigns a "Buy-A" investment rating to the company, indicating a strong potential for returns over the next six months [2][3]. Core Views - The company is expected to achieve revenues of CNY 12.61 billion, CNY 13.30 billion, and CNY 15.80 billion for the years 2024, 2025, and 2026, respectively, with growth rates of -1.8%, 5.5%, and 18.8% [2]. - Net profits are projected to be CNY 2.30 billion, CNY 2.51 billion, and CNY 2.89 billion for the same years, with growth rates of 9.1%, 8.9%, and 15.4% [2]. - The company benefits from its affiliation with China Coal Group, possessing advantageous coal resource locations and significant reserves, primarily selling thermal coal with a high proportion of long-term contracts, enhancing revenue stability [2]. - The integration of coal and power generation projects, mainly located in Anhui province, is expected to significantly boost performance once fully operational by 2026, leveraging synergies to improve profitability and risk resilience [2]. Financial Performance Summary - For the first half of 2024, the company reported revenues of CNY 5.985 billion, a decrease of 4.4% year-on-year, and a net profit of approximately CNY 1.176 billion, an increase of 10.11% year-on-year [1]. - In Q2 2024, the company achieved revenues of CNY 2.927 billion, down 12.99% year-on-year, and a net profit of CNY 578 million, down 19.03% year-on-year [1]. - Coal production in Q2 2024 was 5.3647 million tons, a decrease of 5.94% year-on-year, while coal sales volume dropped by 14.53% year-on-year to 4.5797 million tons [1]. - The average selling price of coal was CNY 553.63 per ton, up 1.89% year-on-year, while the cost per ton was CNY 331.56, down 1.22% year-on-year, resulting in a gross profit of CNY 222.07 per ton, an increase of 6.91% year-on-year [1]. Valuation Metrics - The report sets a target price of CNY 12.02 for the next six months, based on a price-to-earnings ratio of 13.5x for 2024 [2][3]. - The company's market capitalization is approximately CNY 22.36 billion, with a current share price of CNY 8.63 [3].