CHINA COAL ENERGY(601898) 国海证券·2024-08-26 12:29Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has demonstrated excellent performance and increased dividends, positioning itself as an undervalued leader in the thermal coal sector [1] - The company reported a revenue of 929.8 billion yuan for the first half of 2024, a decrease of 15% year-on-year, with a net profit attributable to shareholders of 97.9 billion yuan, down 17.3% year-on-year [3] - The company is expected to maintain stable performance due to its high long-term contract ratio and upcoming production from new mines [6] Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 475.9 billion yuan, a quarter-on-quarter increase of 4.8% but a year-on-year decrease of 5.2% [3] - The net profit for Q2 2024 was 48.18 billion yuan, reflecting a quarter-on-quarter decrease of 3.0% but a year-on-year increase of 3.0% [3] Coal Business - The company produced 66.5 million tons of commodity coal in the first half of 2024, a decrease of 0.9% year-on-year, while sales volume was 133.55 million tons, down 8.9% year-on-year [4] - The average selling price for self-produced coal was 584 yuan per ton, a decrease of 40 yuan per ton (-6.4%) [4] Dividend Policy - The company distributed a cash dividend of 29.4 billion yuan for the first half of 2024, amounting to 0.221 yuan per share, and an additional special dividend of 15 billion yuan [5] - The total dividend for 2023 reached 73.6 billion yuan, representing 38% of the net profit attributable to shareholders [5] Future Outlook - Revenue projections for 2024-2026 are 1798.2 billion yuan, 1872.8 billion yuan, and 1931.8 billion yuan, with expected net profits of 184.0 billion yuan, 204.2 billion yuan, and 227.7 billion yuan respectively [6][7] - The company is expected to benefit from the commissioning of new coal mines and the expansion of its coal chemical business [6]