XINJI ENERGY(601918) Guotou Securities·2024-10-10 03:23Investment Rating - The investment rating for the company is "Buy - A" with a target price of 12.02 CNY for the next six months [3][4]. Core Views - The company is expected to achieve revenues of 12.61 billion CNY, 13.30 billion CNY, and 15.80 billion CNY for the years 2024 to 2026, with growth rates of -1.8%, 5.5%, and 18.8% respectively. Net profits are projected to be 2.30 billion CNY, 2.51 billion CNY, and 2.89 billion CNY, with growth rates of 9.1%, 8.9%, and 15.4% respectively [3][7]. - The company benefits from its affiliation with China Coal Group, possessing advantageous coal resource locations and significant reserves. The majority of its sales are from thermal coal, with a high proportion of long-term contracts enhancing revenue stability [3][7]. - The commissioning of new power generation units is expected to significantly boost the company's performance, particularly as these projects are located near its coal mines, enhancing operational synergies [3][7]. Summary by Sections Company Performance - For the first three quarters of 2024, the company reported coal sales revenue of 7.748 billion CNY, a year-on-year decrease of 6.66%. The external sales revenue was 5.592 billion CNY, down 13.79% year-on-year [2]. - The coal production for Q3 2024 was 5.1981 million tons, a decrease of 3.09% year-on-year and 3.11% quarter-on-quarter. The average selling price of coal was 557.79 CNY per ton, an increase of 0.45% year-on-year and 0.75% quarter-on-quarter [2]. Financial Projections - The company is projected to have a net profit margin of 18.2% in 2024, increasing to 18.8% in 2025, and then slightly decreasing to 18.3% in 2026 [7][8]. - The earnings per share (EPS) is expected to rise from 0.89 CNY in 2024 to 1.12 CNY in 2026, reflecting a positive growth trajectory [7][8]. Market Position - The company has a total market capitalization of 20.543 billion CNY, with a share price of 7.93 CNY as of October 9, 2024. The 12-month price range for the stock is between 4.72 CNY and 10.53 CNY [4][5].