SHENHUO COAL&POWER(SZ:000933) Guohai Securities·2024-08-21 16:00Investment Rating - The report maintains a "Buy" rating for Shenhuo Co., Ltd. (000933) as of August 20, 2024 [1][8]. Core Views - The company's performance in the first half of 2024 showed a decline in revenue and net profit, primarily due to decreased sales and prices in the coal business, while the aluminum segment experienced growth in both production and profit margins [3][4]. - The report highlights that the increase in aluminum production and prices has positively impacted the company's profitability, despite challenges in the coal sector [4][5]. Financial Performance Summary - For the first half of 2024, Shenhuo Co., Ltd. reported revenue of 18.22 billion yuan, a year-on-year decrease of 4.65%, and a net profit of 2.28 billion yuan, down 16.62% year-on-year [3]. - In Q2 2024, the company achieved revenue of 10.00 billion yuan, a quarter-on-quarter increase of 21.57% and a year-on-year increase of 4.2% [3]. - The aluminum production for the first half of 2024 was 750,000 tons, up 3.2% year-on-year, while coal production decreased by 15.0% to 3.23 million tons [4][5]. Segment Analysis Aluminum Segment - The aluminum segment saw a production increase of 3.2% and sales growth of 2.4% in the first half of 2024, with significant contributions from Yunnan province [4]. - The average price of aluminum in Q1 and Q2 2024 was 19,047 yuan/ton and 20,537 yuan/ton, respectively, reflecting year-on-year increases of 3.2% and 10.9% [4]. Coal Segment - The coal segment faced a decline in both production and sales, with production down 15.0% and sales down 18.8% year-on-year [4]. - The average selling price of coal decreased by 133 yuan/ton, leading to reduced profitability in this segment [4]. Future Earnings Forecast - The report projects Shenhuo Co., Ltd.'s revenue for 2024 to be 39.35 billion yuan, with a growth rate of 5% [7]. - The expected net profit for 2024 is 4.85 billion yuan, reflecting a year-on-year decrease of 18% [7]. - The earnings per share (EPS) is forecasted to be 2.15 yuan for 2024, with a gradual increase expected in subsequent years [7][8].