pingmei coal(SH:601666) Great Wall Securities·2024-08-21 10:37Investment Rating - The report maintains a "Buy" rating for Pingmei Shenma Group Co., Ltd. (601666.SH) with an expected price increase of 5% to 15% over the next six months [12]. Core Views - The company is focusing on its "premium coal strategy," aiming to enhance the quality and efficiency of its operations while maintaining a strong shareholder return through continuous share buybacks [2][3]. - The company reported a decrease in revenue and net profit for the first half of 2024, attributed to production disruptions from accidents and a decline in sales volume [1][3]. - The company is implementing various initiatives to improve operational efficiency, including smart mining construction and green mining practices [3]. Financial Summary - Revenue: The company reported revenue of 36,044 million CNY in 2022, which decreased to 31,561 million CNY in 2023, with a slight expected increase to 31,649 million CNY in 2024 [1]. - Net Profit: The net profit for 2022 was 5,739 million CNY, which fell to 4,003 million CNY in 2023, with an expected further decline to 3,010 million CNY in 2024 [1]. - EPS: The diluted earnings per share (EPS) decreased from 2.32 CNY in 2022 to 1.62 CNY in 2023, with projections of 1.22 CNY for 2024 [1][8]. - P/E Ratio: The price-to-earnings (P/E) ratio is projected to be 8.3x for 2024, decreasing to 7.6x by 2026 [1][8]. Production and Sales - Coal Production: The company produced 1,420.82 million tons of raw coal in the first half of 2024, a decrease of 7.56% year-on-year [1]. - Coal Sales: The coal sales volume was 1,348.75 million tons, down 13.20% year-on-year [1]. - Coal Price: The average selling price of coal was 1,088.43 CNY per ton, reflecting a year-on-year increase of 9.31% [1]. Strategic Initiatives - The company is focusing on enhancing its core product, low-sulfur coking coal, and aims to increase its production to 13.05 million tons in 2024 [3]. - It is also advancing projects for the commercial utilization of coalbed methane and developing new technologies for high-end carbon materials [3].