pingmei coal(601666) Xinda Securities·2024-10-26 06:00Investment Rating - The investment rating for Pingmei Shenma Coal and Chemical Company is "Buy" [1]. Core Views - The report highlights that the decline in volume and price has impacted short-term performance, but cost control measures have supported a high gross margin [1]. - The company has plans to participate in coal exploration rights bidding in Xinjiang, which is expected to enhance its core competitiveness and sustainable profitability [1]. - The controlling shareholder has increased their stake in the company, reflecting confidence in its long-term development [2]. Financial Performance Summary - For the third quarter of 2024, the company reported operating revenue of 23.319 billion yuan, a year-on-year decrease of 34.9% [1]. - The net profit attributable to shareholders for the first three quarters of 2024 was 2.045 billion yuan, down 32.4% year-on-year [1]. - The gross margin for the third quarter remained high at 31.37%, despite a decline in sales volume and price [1]. - The company’s coal production was 6.85 million tons, a year-on-year decrease of 10.78% [1]. - The average selling price of coal in the third quarter was 918 yuan per ton, down 11.8% quarter-on-quarter [1]. Earnings Forecast - The forecasted net profit attributable to shareholders for 2024-2026 is 2.954 billion, 4.581 billion, and 5.068 billion yuan respectively, with corresponding EPS of 1.19, 1.85, and 2.05 yuan per share [2]. - The report anticipates a P/E ratio of 8.52, 5.50, and 4.97 for the years 2024-2026 [2]. Strategic Initiatives - The company is focusing on "smart" new infrastructure, efficiency improvements, and optimizing its product structure to enhance profitability [2]. - The joint venture in Xinjiang is expected to strengthen the company's core business and improve its competitive edge [1].