JZEG(SZ:000937) Minsheng Securities·2024-08-17 09:00Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [2][3]. Core Views - The company reported a significant decline in revenue and net profit for the first half of 2024, with revenue at 10.11 billion yuan, down 31.46% year-on-year, and net profit at 1.00 billion yuan, down 70.26% year-on-year [2]. - The decline in profitability is attributed to falling coal prices, with Q2 2024 net profit dropping to 0.29 billion yuan, a decrease of 55.81% year-on-year and 58.58% quarter-on-quarter [2]. - The company plans to distribute a cash dividend of 0.20 yuan per share, yielding a dividend rate of 3.61% [2]. - The company aims to increase coal production to 50 million tons within three to five years, representing an 82.42% increase from the 27.41 million tons produced in 2023 [2]. - Non-coal business segments are expected to grow, with new projects in glass fiber and PVC production anticipated to improve profitability [2]. Financial Summary - For 2024, the company is projected to have a net profit of 1.50 billion yuan, with earnings per share (EPS) of 0.43 yuan, corresponding to a price-to-earnings (PE) ratio of 13 times based on the closing price on August 16, 2024 [3][7]. - Revenue is expected to decline to 22.45 billion yuan in 2024, with a growth rate of -7.7% [3][7]. - The company's gross profit margin for coal business increased by 6.99 percentage points to 46.92% due to a higher decline in costs compared to revenue [2][3]. - The company’s total assets are projected to reach 52.72 billion yuan in 2024, with a debt-to-equity ratio of approximately 51.96% [8].