DTCIC(601001) Minsheng Securities·2024-10-28 10:00Investment Rating - The report maintains a "Recommended" rating for the company [5][8]. Core Views - The company reported a slight year-on-year decline in revenue and net profit for the first three quarters of 2024, with revenues of 11.234 billion yuan and a net profit of 2.151 billion yuan, reflecting a decrease of 0.19% and 0.62% respectively [3]. - In Q3 2024, the company experienced a quarter-on-quarter profit growth of 8.9%, with revenues of 3.855 billion yuan, a year-on-year increase of 1.38% and a quarter-on-quarter increase of 3.60% [3]. - The company has a strong cash position, with net cash amounting to 14.265 billion yuan, representing 53.5% of its market value [4]. - The dividend payout ratio has been steadily increasing, reaching 40.06% in 2023, and is expected to rise further in 2024 due to high cash reserves [5]. - The controlling shareholder, Jinneng Holding Coal Industry Group, has significant resource reserves and potential for asset injection into the company, which could enhance its capacity [5]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a coal production of 25.7941 million tons, a year-on-year increase of 1.47%, while the sales volume of commercial coal was 22.0696 million tons, a slight decrease of 0.30% [4]. - The average selling price of coal remained stable at 494.21 yuan per ton, with production costs decreasing by 0.62% to 261.85 yuan per ton, resulting in a gross margin of 47.02%, an increase of 0.33 percentage points year-on-year [4]. - The company forecasts net profits of 2.934 billion yuan, 3.180 billion yuan, and 3.279 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.75, 1.90, and 1.96 yuan per share [5][9].