lu'an EED(SH:601699) Tebon Securities·2024-08-23 05:30Investment Rating - The report maintains a "Buy" rating for Lu'an Environmental Energy (601699.SH) [1] Core Views - The company reported a significant decline in performance for the first half of 2024, with revenue of 17.654 billion yuan, down 19.33% year-on-year, and a net profit of 2.227 billion yuan, down 57.96% year-on-year [3][4] - The decline in performance is attributed to increased resource tax rates, reduced coal sales volume, and falling prices of coking coal [3][4] - Future growth is anticipated due to government support for equipment upgrades and the expected stabilization of coal prices [4] Financial Performance Summary - For Q2 2024, the company achieved revenue of 8.995 billion yuan, a decrease of 10.0% year-on-year, but an increase of 3.9% quarter-on-quarter [3] - The net profit for Q2 2024 was 939 million yuan, down 51% year-on-year and down 27.19% quarter-on-quarter [3] - The company’s coal production for H1 2024 was 27.67 million tons, down 6.3% year-on-year, with a total coal sales volume of 24.55 million tons, down 9.5% year-on-year [4] Future Outlook - The company has acquired coal exploration rights in Shanxi province for 12.126 billion yuan, which is expected to enhance its resource reserves and competitive advantage [4] - The company is actively pursuing capacity expansion projects at several mines, indicating potential for future growth [4] - Revenue forecasts for 2024-2026 have been adjusted to 37.8 billion, 39.9 billion, and 40.7 billion yuan, respectively, with net profits projected at 4.1 billion, 4.4 billion, and 4.5 billion yuan [4][7]