华阳股份：公司半年报点评：生产逐步恢复，煤炭增量有望逐步体现

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights a significant decline in net profit for the first half of 2024, down 57% year-on-year, with revenues and net profit attributable to the parent company at 12.99 billion and 1.299 billion yuan respectively, reflecting a year-on-year decrease of 20.85% and 56.87% [6] - Coal production is gradually recovering, with Q2 2024 coal production and sales reaching 1,016 and 882 million tons respectively, showing a year-on-year decline of 16.7% and 18.8% but a quarter-on-quarter increase of 19.5% and 6.4% [6] - The company is expanding its coal resources, having acquired exploration rights for approximately 630 million tons of coal in Shanxi province, increasing total coal reserves to nearly 7 billion tons [6] - The company is also focusing on strategic transformation in the renewable energy sector, with significant advancements in solar and sodium-ion battery production [6] Summary by Sections Financial Performance - For H1 2024, the company reported a net profit of 1.299 billion yuan, down 56.87% year-on-year, with a Q2 net profit of 432 million yuan, down 66.4% year-on-year [6][7] - The average selling price of coal in H1 2024 was 572 yuan per ton, a decrease of 8.7% year-on-year [6] - The company’s gross profit from coal operations was 3.73 billion yuan, down 43% year-on-year, with a gross margin of 38.2% [6] Production and Sales - The company’s coal production and sales for H1 2024 were 18.66 million and 17.10 million tons, respectively, down 21.5% and 20.7% year-on-year [6] - The company is expected to increase coal production capacity with new mines coming online, including two 5 million ton mines [6] Future Outlook - The company forecasts net profits of 3.08 billion, 4.05 billion, and 4.74 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.85, 1.12, and 1.31 yuan [6][10] - The report assigns a valuation range of 8.54 to 10.25 yuan based on a PE ratio of 10 to 12 times for 2024 [6] Comparables and Valuation - The report includes a comparison with peer companies in the coal and lithium-ion battery sectors, indicating a favorable valuation outlook for the company [9][10]