SCC(600740) Minsheng Securities·2024-10-26 08:01Investment Rating - The investment rating for Shanxi Coking Coal (600740.SH) is "Cautious Recommendation" [2][4]. Core Views - The company's net profit attributable to shareholders for the first three quarters of 2024 is 253 million yuan, a year-on-year decrease of 80.27%, with operating revenue of 5.452 billion yuan, down 16.34% year-on-year [2]. - The decline in net profit is primarily due to a decrease in revenue from the coking business and reduced investment income from its associate company, China Coal Huajin [2]. - The third quarter of 2024 saw a significant decline in performance, with operating revenue of 1.508 billion yuan, down 26.84% year-on-year, and net profit attributable to shareholders of 68.71 million yuan, down 81.15% year-on-year and 41.84% quarter-on-quarter [2]. - The average selling price of coke in Q3 2024 was 1,731.51 yuan/ton, a decrease of 10.39% year-on-year and 5.56% quarter-on-quarter, while the unit procurement cost of coking coal was 1,424.91 yuan/ton, down 8.9% quarter-on-quarter and 3.24% year-on-year [2]. - The company is expected to have net profits of 328 million yuan, 417 million yuan, and 659 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.13, 0.16, and 0.26 yuan [2][5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a net profit of 253 million yuan, a decrease of 80.27% year-on-year, and operating revenue of 5.452 billion yuan, down 16.34% year-on-year [2]. - The investment income for the first three quarters of 2024 was 1.877 billion yuan, a decrease of 22.63% year-on-year [2]. - In Q3 2024, the company achieved a coke production of 595,100 tons, down 18.05% year-on-year, and a sales volume of 588,800 tons, down 18.66% year-on-year [2]. Price Trends - The prices of major chemical products showed mixed trends in Q3 2024, with asphalt at 3,641.8 yuan/ton (down 15.91% year-on-year), industrial naphthalene at 5,076.39 yuan/ton (down 5.21% year-on-year), and pure benzene at 7,613.31 yuan/ton (up 14.81% year-on-year) [2]. Future Projections - The company forecasts net profits of 328 million yuan, 417 million yuan, and 659 million yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 33, 26, and 16 times [2][5].