Shanxi Securities·2024-09-04 08:00Investment Rating - The report maintains an investment rating of "Buy-A" for the company, indicating a positive outlook for the stock price in the next 6-12 months [6]. Core Views - The company continues to demonstrate a strong performance across its coal and electricity segments, with an integrated operational model that enhances its competitive advantage [6][2]. - Despite a decline in profits due to falling coal prices and electricity rates, the company has shown resilience through increased coal production and sales, as well as improved logistics performance [1][2]. - The anticipated recovery in coal and electricity prices in the second half of the year is expected to support the company's financial performance [6]. Summary by Sections Market Performance - The company reported a total profit of 260.39 million yuan from coal, 52.51 million yuan from electricity, and 83.57 million yuan from transportation in the first half of the year, reflecting a year-on-year decline in coal and electricity profits [1]. - The average coal price decreased by 5.8% year-on-year, while the company’s coal production increased by 1.6% to 163.2 million tons [1][2]. Financial Highlights - For the first half of 2024, the company achieved operating revenue of 1680.78 billion yuan, a decrease of 0.8% year-on-year, and a net profit of 295.04 billion yuan, down 11.3% year-on-year [2]. - The basic earnings per share (EPS) for the period was 1.485 yuan, with a return on equity (ROE) of 7.32% [2]. Operational Insights - The company’s coal sales volume increased by 5.4% to 229.7 million tons, with self-produced coal sales rising by 2.2% [1]. - The average selling price of coal was 566 yuan per ton, with a unit sales cost of 458 yuan per ton, reflecting a decrease in costs due to lower procurement prices [1][2]. Future Projections - The expected EPS for 2024-2026 is projected to be 2.92, 2.93, and 2.99 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 13.8, 13.7, and 13.4 [6]. - The report suggests that the company’s dividend yield remains attractive, and the inclusion of state-owned enterprise market value management in assessments could enhance the company’s valuation [6].