CHINA COAL ENERGY(601898) 开源证券·2024-09-19 07:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The report emphasizes that China Coal Energy is undervalued with high dividend potential and growth prospects. The company has been increasing its dividend payout ratio and has implemented special dividends and interim dividends [3][4] - The company is diversifying its operations beyond coal mining into coal chemical, coal power, coal mining equipment, and renewable energy sectors, all of which show high growth potential [3][4] - The report maintains profit forecasts for 2024-2026, expecting net profits attributable to the parent company to be 19.62 billion, 21.40 billion, and 22.55 billion yuan respectively, with corresponding EPS of 1.48, 1.61, and 1.70 yuan per share [3][5] Summary by Sections Company Overview - China Coal Energy is a leading state-owned coal enterprise, listed in both Hong Kong and A-shares. The company is controlled by the State-owned Assets Supervision and Administration Commission [10][11] High Dividend and Market Value Management - The company has responded positively to policies encouraging higher dividends, with a cash dividend ratio reaching 37.7% in 2023. The total dividend ratio for 2024 is expected to reach 45% [4][24] - The company has maintained a low debt ratio of 48% as of June 30, 2024, allowing for sustainable high dividend payouts [4][24] Coal Industry: Growth Potential and Stability - The company possesses abundant coal resources, with a total coal resource of 26.65 billion tons, primarily in Shanxi, Inner Mongolia, and Shaanxi. The company has the highest recoverable reserves in the industry at 13.87 billion tons [28] - The report highlights that the company is well-positioned to benefit from new production capacities and stable profitability due to long-term contracts [28]