Tianfeng Securities·2024-08-26 12:36Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 12.96 CNY [5] Core Views - The company reported a year-on-year increase in net profit for Q2, with a single-quarter net profit of 48.18 billion CNY, up 2.96% year-on-year, despite a 15% decline in revenue for the first half of 2024 [1] - The company's self-produced coal sales volume increased by 2.1% year-on-year, while the overall coal sales volume decreased by 8.9% [2] - The gross profit margin for polyolefins expanded due to a decrease in procurement costs, with a gross profit of 1,089 CNY per ton, up 241 CNY per ton year-on-year [3] - The forecast for net profit for 2024-2026 has been adjusted upwards to 193.9 billion CNY, 198.6 billion CNY, and 205.2 billion CNY, respectively, with corresponding EPS of 1.46 CNY, 1.50 CNY, and 1.55 CNY [3] Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 929.84 billion CNY, down 15% year-on-year, and a net profit of 97.88 billion CNY, down 17.3% year-on-year [1] - Q2 saw a reduction in various expenses, with management expenses down 0.96%, R&D expenses down 17.5%, and financial expenses down 25.06% [1] Coal Production and Sales - The total coal production for the first half of 2024 was 66.5 million tons, a decrease of 0.9% year-on-year, while self-produced coal sales reached 66.19 million tons, an increase of 2.1% [2] - The unit sales cost of coal was 292.88 CNY per ton, reflecting a slight increase of 2.7% year-on-year [2] Polyolefins and Cost Structure - The average price of polyolefins was 6,955 CNY per ton, up 0.8% year-on-year, while the cost was 5,866 CNY per ton, down 3.1% year-on-year [3] - The overall operating cost for the coal chemical sector decreased by 7.8% year-on-year, with material costs dropping by 13.1% [3] Valuation Metrics - The company’s total market capitalization is approximately 118.61 billion CNY, with a total share capital of 9,152 million shares [4] - The company’s price-to-earnings ratio (P/E) for 2024 is projected at 8.86, indicating a favorable valuation compared to historical performance [8]