DTCIC(SH:601001) Haitong Securities·2024-09-03 06:14Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights the company's stable profitability in the coal business and the potential for long-term external growth [5] - The company achieved a net profit attributable to shareholders of 1.44 billion yuan in the first half of 2024, representing a year-on-year increase of 4% [5] - The report anticipates that the company's net profit for 2024-2026 will be 2.81 billion, 2.86 billion, and 2.82 billion yuan respectively, with corresponding EPS of 1.68, 1.71, and 1.69 yuan [6] Financial Performance Summary - In the first half of 2024, the company reported revenue of 7.38 billion yuan, a year-on-year decrease of 1%, while the net profit attributable to shareholders was 1.44 billion yuan, an increase of 3.7% [5] - The company’s coal production and sales volume for the first half of 2024 were 16.93 million tons and 14.45 million tons respectively, showing a slight decrease compared to the previous year [5] - The average selling price of coal in the first half of 2024 was 495 yuan per ton, down 1.8% year-on-year [5] Profitability and Valuation - The report projects a gross profit margin of 50% for 2023, which is expected to decrease to 44.9% in 2024 and gradually recover to 46.8% by 2026 [10] - The company is valued at a P/E ratio of 11-12 times for 2024, with a reasonable price range of 18.46 to 20.14 yuan [6][9] Market Position and Growth Potential - The company has a significant competitive advantage with 88 mines and an annual production capacity of 242 million tons, along with a total resource reserve of 38.541 billion tons [5] - The report suggests that the company is well-positioned for future asset injections from its parent group, which could enhance its growth prospects [6]