GANSU EC(SZ:000552) Tebon Securities·2024-08-23 08:32Investment Rating - The investment rating for Gansu Energy Chemical (000552.SZ) is "Buy" (maintained) [1] Core Views - The company's performance has improved year-on-year, and there are promising growth prospects in coal, electricity, and chemical sectors [1][2] - The company reported a revenue of 5.625 billion yuan for the first half of 2024, a decrease of 2.26% year-on-year, with a net profit of 0.897 billion yuan, down 29.91% year-on-year [2] - The coal production and sales have increased, while coal prices have slightly declined [2] Financial Performance Summary - For Q2 2024, the company achieved a revenue of 2.803 billion yuan, up 7.9% year-on-year but down 0.7% quarter-on-quarter; net profit was 0.361 billion yuan, up 12.1% year-on-year but down 32.8% quarter-on-quarter [2] - The coal production for H1 2024 was 10.32 million tons, an increase of 7.68% year-on-year, with sales of 8.57 million tons, up 6.29% year-on-year [2] - The average selling price of commodity coal was 500.6 yuan/ton, down 9.1% year-on-year, while the comprehensive cost was 294 yuan/ton, up 19.2% year-on-year [2] Growth Potential Summary - The company has significant growth potential with ongoing projects expected to yield results in the near future [2] - The company plans to achieve a coal production capacity of 23.14 million tons, power generation capacity of 3 million kilowatts, and chemical production capacity of 1.4 million tons by the end of 2025 [2] - Key projects include the Baiyanzi & Hongshaliang open-pit mine and the Lanzhou New Area thermal power unit, which are expected to enhance production capacity significantly [2] Earnings Forecast - The forecasted revenues for 2024, 2025, and 2026 are 11.1 billion yuan, 13.3 billion yuan, and 15.9 billion yuan respectively, with net profits of 1.7 billion yuan, 2 billion yuan, and 2.3 billion yuan respectively [3][4] - The price-to-earnings (PE) ratios for the same years are projected to be 7.65, 6.71, and 5.78 [3][4]