lu'an EED(SH:601699) Minsheng Securities·2024-08-23 06:30Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Views - The company's revenue for the first half of 2024 was 17.654 billion yuan, a year-on-year decrease of 19.33%, with net profit attributable to shareholders dropping by 57.96% to 2.227 billion yuan [1]. - In Q2 2024, the company's net profit was 939 million yuan, down 49.55% year-on-year and 24.94% quarter-on-quarter [1]. - The company experienced a decline in production and sales, with coal production of 27.67 million tons in H1 2024, a decrease of 6.33% year-on-year [1]. - The average selling price of coal decreased by 11.6% year-on-year to 683.09 yuan/ton, while the cost per ton increased by 10.1% to 371.4 yuan/ton, leading to a total gross profit of 7.652 billion yuan, down 35.2% year-on-year [1]. - The company successfully acquired exploration rights for the Shangma block for 12.126 billion yuan, which is expected to benefit long-term development [1]. - The projected net profits for 2024-2026 are 4.635 billion, 4.915 billion, and 5.126 billion yuan, respectively, with corresponding EPS of 1.55, 1.64, and 1.71 yuan per share [1][2]. Financial Summary - The company's total revenue is forecasted to decline from 43.137 billion yuan in 2023 to 40.282 billion yuan in 2024, with a growth rate of -20.6% and -6.6% respectively [2][6]. - The net profit attributable to shareholders is expected to decrease from 7.922 billion yuan in 2023 to 4.635 billion yuan in 2024, reflecting a decline of 44.1% [2][6]. - The company's PE ratio is projected to be 9 for 2024, with a PB ratio of 0.9 [2][6]. - The gross profit margin is expected to drop to 38.61% in 2024 from 47.71% in 2023 [6][7].