GANSU EC(SZ:000552) Guotou Securities·2024-08-23 08:46Investment Rating - The report assigns an "Accumulate-A" investment rating to the company, with a target price of 3.06 CNY over the next six months [2][5]. Core Insights - The company reported a positive growth in net profit for the second quarter of 2024, indicating potential recovery in its coal, thermal power, and chemical businesses [1]. - The core business remains coal mining and sales, contributing 76.28% to total revenue, with significant increases in production and sales volumes [1][2]. - The company is actively developing multiple projects in coal, power, and chemical sectors, which are expected to contribute to long-term growth [2][5]. Financial Performance Summary - For the first half of 2024, the company achieved total revenue of 5.625 billion CNY, a year-on-year decrease of 2.26%, and a net profit of 897 million CNY, down 29.91% [1]. - In Q2 2024, revenue was 2.803 billion CNY, up 7.88% year-on-year, while net profit increased by 12.10% to 361 million CNY [1]. - Coal production reached 10.3212 million tons, a 7.68% increase year-on-year, with sales volume at 8.5716 million tons, up 6.29% [1]. Business Segment Performance - The coal segment remains the primary revenue driver, with an average coal price of 500.61 CNY per ton, reflecting a 9.08% decrease year-on-year, while costs increased by 8.16% [1]. - The power segment showed improvement, contributing 741 million CNY to revenue, with a gross profit margin of 6.05%, up from 1.60% year-on-year [1]. - The company is working on adjusting heating prices to improve profitability in its power segment, which previously faced losses [1][2]. Future Growth Prospects - The company has three coal mines under construction with a total annual capacity of 6.9 million tons, and significant thermal power projects are underway [2][5]. - Expected revenues for 2024-2026 are projected at 11.797 billion CNY, 13.289 billion CNY, and 14.918 billion CNY, with respective growth rates of 4.8%, 12.7%, and 12.3% [5][6]. - Net profits are forecasted to be 1.913 billion CNY, 2.176 billion CNY, and 2.403 billion CNY for the same period, with growth rates of 10.1%, 13.7%, and 10.5% [5][6].