HYMD(SH:600971) Minsheng Securities·2024-08-22 01:30Investment Rating - The report maintains a "Recommended" rating for the company, considering its stable operations and high long-term contract ratio [3][5]. Core Views - The company reported a decline in revenue and net profit for the first half of 2024, with revenue at 3.893 billion yuan, down 8.13% year-on-year, and net profit at 758 million yuan, down 32.14% year-on-year, primarily due to falling coal prices despite an increase in coal production and sales [2][3]. - The company's coal production and sales increased year-on-year, with raw coal production at 4.9417 million tons (up 10.33%) and commodity coal production at 3.8475 million tons (up 6.98%) in the first half of 2024. However, the average selling price of coal decreased by 9.21% to 954.53 yuan per ton [2][3]. - The electricity business turned profitable with a net profit of 14.76 million yuan in the first half of 2024, contributing positively to the overall performance, although its revenue share remains low [3]. Financial Summary - For the second quarter of 2024, the company reported revenue of 1.842 billion yuan, down 7.89% year-on-year and 10.18% quarter-on-quarter, with a net profit of 327 million yuan, down 35.78% year-on-year and 24.11% quarter-on-quarter [2][3]. - The average selling price of coal in Q2 2024 was 893.42 yuan per ton, a decrease of 13.11% year-on-year, while the average selling cost was 555.11 yuan per ton, an increase of 9.42% year-on-year [2][3]. - The projected net profit for the company for 2024-2026 is estimated at 1.402 billion yuan, 1.554 billion yuan, and 1.719 billion yuan respectively, with corresponding EPS of 1.17 yuan, 1.29 yuan, and 1.43 yuan per share [3][4].