Xinda Securities·2024-08-20 07:30Investment Rating - The investment rating for Yancoal Australia (兖煤澳洲) is "Buy" [1] Core Views - Yancoal Australia's mid-year performance for 2024 showed a short-term decline, but the company remains a strong investment opportunity due to its high dividend yield, low valuation, and long-term growth potential [2] - The average selling price of coal has significantly decreased, but future price trends are expected to stabilize, with a forecasted average selling price of 176 AUD/ton for H1 2024, down 37% year-on-year [2][3] - The company aims to maintain its production and sales guidance for the year at 35-39 million tons, with H1 2024 coal production increasing by 18% year-on-year [3] - Cash operating costs for H1 2024 were reported at 101 AUD/ton, a 7% decrease year-on-year, with expectations for further cost reductions in the second half of the year [3][4] - Yancoal Australia has a strong cash position of 1.4 billion AUD, which provides flexibility for potential growth opportunities while balancing shareholder returns [4] - The projected net profit for Yancoal Australia in 2024 is expected to reach 1.01 billion AUD, contributing approximately 3 billion RMB to Yancoal Energy [4] Financial Summary - Total revenue for Yancoal Australia is projected to be 150.8 billion RMB in 2024, with a slight increase of 0.5% year-on-year [5] - The net profit attributable to the parent company is forecasted at 21.4 billion RMB for 2024, reflecting a year-on-year increase of 6.1% [5] - The company's gross margin is expected to be 38.4% in 2024, with a return on equity (ROE) of 25% [5] - Earnings per share (EPS) is projected to be 2.13 RMB for 2024, with a price-to-earnings (P/E) ratio of 6.91 [5]