SHCI(SH:601225) Xinda Securities·2024-09-06 09:12Investment Rating - The investment rating for Shaanxi Coal and Chemical Industry Co., Ltd. is "Buy," consistent with the previous rating [1]. Core Views - The report emphasizes the potential for significant growth in the coal-electricity integrated operation model, which is expected to enhance revenue and operational stability for the company [4][5]. - The acquisition of Shaanxi Coal Power Group is a strategic move towards achieving a "coal-electricity integration" operational model, aimed at mitigating price fluctuations in coal and electricity demand [4][5]. Summary by Sections Company Overview - Shaanxi Coal has abundant coal resources with a recoverable reserve of 10.441 billion tons, ensuring over 70 years of mining capacity. The company has a coal production capacity of 162 million tons and has seen a 2.45% year-on-year increase in coal production for the first eight months of 2024, totaling 114 million tons [3]. Power Assets - As of March 2024, Shaanxi Coal Power Group has a controllable installed capacity of 9.418 million kilowatts, primarily from thermal power. The group generated 34.939 billion kWh of electricity in 2023, with an average selling price of 437 RMB per MWh and a coal consumption cost of 846.44 RMB per ton [3]. Project Pipeline - The company has significant ongoing and approved projects, totaling 9.32 million kilowatts, which could double its coal-electricity installed capacity upon completion. These projects are strategically located in regions with high electricity demand [3]. Financial Forecast - The report forecasts net profits for 2024-2026 to be 21.6 billion, 22.3 billion, and 23.2 billion RMB, respectively, with EPS projected at 2.23, 2.30, and 2.39 RMB per share. The P/E ratios are expected to be 10.79, 10.46, and 10.07 [5].