KAIYUAN SECURITIES·2024-08-26 12:33Investment Rating - The investment rating for the company is "Buy" (maintained) [2][5]. Core Views - The company has increased its mid-year dividend, demonstrating a commitment to shareholder returns while showing high growth potential in coal and chemical integration [5]. - Despite a decline in coal prices impacting performance, the company is expected to benefit from high dividend potential and growth in its main business [5]. - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 196.2 billion, 214.0 billion, and 225.5 billion yuan respectively, reflecting a year-on-year growth of 0.4%, 9.1%, and 5.4% [5]. Financial Performance Summary - In H1 2024, the company achieved operating revenue of 929.8 billion yuan, down 15.0% year-on-year, and a net profit attributable to shareholders of 97.9 billion yuan, down 17.3% year-on-year [5]. - The coal business reported a revenue of 777.7 billion yuan in H1 2024, a decrease of 16.8% year-on-year, with a gross profit of 198.5 billion yuan, down 11.9% year-on-year [5]. - The company’s coal production and sales in H1 2024 were 66.5 million and 66.19 million tons respectively, with an average selling price of 584.3 yuan per ton, down 6.4% year-on-year [5]. Dividend Potential and Capacity Growth - The company has a strong potential for increasing its dividend payout, with a cash dividend ratio of 37.7% for 2023 and an expected total dividend ratio of 45% for 2024 [5]. - The company has ongoing projects that will increase coal production capacity, including two new coal mines with a total capacity of 6.4 million tons [5]. - The coal chemical business is also expanding, with a new project in Yulin, Shaanxi, expected to start production in 2024, adding significant capacity [5].