Investment Rating - The report maintains a "Buy" rating for Shougang Resources [3][10]. Core Views - The company's total revenue for the first half of 2024 was HKD 2.53 billion, a decrease of 27.6% year-on-year, while the profit attributable to shareholders was HKD 840 million, down 32%, aligning with market expectations [3]. - The production volume is expected to recover in the second half of the year, with an annual forecast of 4.8 to 5 million tons, following a decline due to temporary shutdowns [3]. - The average selling price of premium coking coal in the first half was HKD 1,938 per ton, a slight decrease of 2% year-on-year, while the average market benchmark price increased by 3% [3]. Summary by Sections Financial Performance - Total revenue for 2024 is projected at HKD 5.33 billion, with a year-on-year decrease of 9.58% [5]. - Net profit estimates for 2024 and 2025 have been revised down to HKD 1.695 billion and HKD 1.844 billion, respectively, reflecting a decrease of 6.55% and 5.36% [3][5]. - The company’s average cost per ton in the first half was HKD 450, up from HKD 401 in the previous year, primarily due to reduced production and increased resource taxes [3]. Production Insights - The company’s coal production in the first half was 2.25 million tons, a 15% decline year-on-year, with premium coking coal production down 31% to approximately 1.29 million tons [3]. - The company has a total approved production capacity of 5.25 million tons, with the Xingu mine accounting for 1.75 million tons, and is expected to achieve an annual production of 4.8 to 5 million tons [3]. Market Dynamics - The report notes a significant change in the sales structure, with low-sulfur premium coking coal sales dropping by 91%, now accounting for only 3% of total sales [3]. - The company’s coal washing rate fell below 60%, compared to over 70% in the first half of 2023, attributed to the temporary shutdown of the Xingu mine [3].
首钢资源2024年中报点评：产量持续恢复，后续资源接续无忧