SLSVC(SH:600123) KAIYUAN SECURITIES·2024-08-31 15:36Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that Q2 coal production and pricing improved sequentially, and the company's dividend and share buyback programs demonstrate its investment value [4] - The company reported a significant increase in Q2 net profit and revenue compared to Q1, indicating a recovery trend [4] Financial Performance Summary - For H1 2024, the company achieved operating revenue of 5.48 billion yuan, a year-on-year decrease of 15.3%, and a net profit attributable to shareholders of 550 million yuan, down 59.5% year-on-year [4] - In Q2 2024, the company reported operating revenue of 3.21 billion yuan, a quarter-on-quarter increase of 42.1%, and a net profit of 420 million yuan, a quarter-on-quarter increase of 208.9% [4] - The company maintains its profit forecast for 2024-2026, expecting net profits of 1.20 billion, 1.61 billion, and 1.84 billion yuan respectively [4] Coal Business Performance - Q2 coal production and sales showed significant sequential growth, with production at 3.94 million tons and sales at 3.38 million tons, representing increases of 26.4% and 41.7% respectively [4] - The average selling price of coal in Q2 was 640.9 yuan per ton, a quarter-on-quarter increase of 1.5%, while the gross profit per ton was 294.2 yuan, up 10.6% quarter-on-quarter [4] Chemical Business Performance - Urea production and sales improved year-on-year in H1 2024, with production at 478,000 tons and sales at 476,000 tons, although Q2 saw a slight decline in profitability [4] - The average price of urea in H1 was 2010.9 yuan per ton, down 12% year-on-year, with a gross profit of 432.3 yuan per ton, up 54.5% year-on-year [4] Growth Potential and Investment Value - The company has growth potential in coal production capacity, with new projects expected to come online in the coming years [4] - The dividend payout ratio reached 53.1% in 2023, an increase of 17.7 percentage points from 2022, and a share buyback plan of 100 to 200 million yuan has been proposed [4]