Xinda Securities·2024-08-31 10:30Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The coal and power sectors have shown stable production growth, but profitability has been impacted by price fluctuations and rising costs [2][3] - The company is expected to benefit from economic stimulus policies leading to improved demand and stable coal prices, supporting profitability [7] Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 168.08 billion yuan, a year-on-year decrease of 0.80%, and a net profit attributable to shareholders of 29.50 billion yuan, down 11.34% year-on-year [1] - The second quarter of 2024 saw a single-quarter operating revenue of 80.43 billion yuan, a decrease of 2.39% year-on-year and 8.23% quarter-on-quarter [1] Coal Sector - The company produced 163.2 million tons of coal in the first half of 2024, a year-on-year increase of 1.6%, with sales volume reaching 229.7 million tons, up 5.4% year-on-year [2] - Average coal selling price decreased by 5.8% year-on-year to 566 yuan/ton, while the total profit for the coal sector fell by 18.1% to 26.04 billion yuan [2] Power Sector - Total power generation reached 104.04 billion kWh in the first half of 2024, an increase of 3.8% year-on-year, with total sales of 97.89 billion kWh, up 3.9% year-on-year [3] - The total profit for the power sector decreased by 9.5% to 8.25 billion yuan, with a slight decline in gross margin [3] Transportation and Coal Chemical Sectors - The railway division's revenue reached 22.44 billion yuan, a year-on-year increase of 1.4%, with total profit rising by 1.9% [4] - The coal chemical sector experienced a significant profit decline of 96.9% due to reduced production and sales [6] Future Outlook - The company is expected to achieve net profits of 59.84 billion yuan, 62.84 billion yuan, and 65.55 billion yuan for 2024, 2025, and 2026 respectively, with EPS projected at 3.01, 3.16, and 3.30 yuan per share [7][8]