2024-10-28 11:06Investment Rating - The report maintains a "Buy" rating for China Shenhua Energy Company Limited (601088) [6][9][12] Core Views - The company's Q3 2024 performance slightly exceeded expectations, with revenue of 253.9 billion yuan, a year-on-year increase of 0.6%, and a net profit of 46.1 billion yuan, a decrease of 4.5% [6][12] - The increase in self-produced coal sales price and decrease in costs contributed to the improvement in gross profit per ton of self-produced coal [7][12] - The company has a strong cash position with total cash and financial assets amounting to 174.2 billion yuan as of September 2024, reflecting a 9.04% increase from the end of 2023 [21][22] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 2538.99 billion yuan, with a net profit of 460.74 billion yuan and basic earnings per share of 2.319 yuan [6][12] - In Q3 2024 alone, revenue reached 858.21 billion yuan, a quarter-on-quarter increase of 6.7% and a year-on-year increase of 3.37% [6][12] Coal Production and Sales - The company produced 244.4 million tons of coal in the first three quarters of 2024, a 1% increase year-on-year, with sales of 345.3 million tons, up 3.8% [7][12] - The average selling price of self-produced coal was 531 yuan per ton, down 2.8% year-on-year, while the cost was 300 yuan per ton, down 1.7% [7][12] Power Generation - The company generated 168.14 billion kWh of electricity in the first three quarters of 2024, a 7.6% increase year-on-year, with sales of 158.27 billion kWh, up 7.8% [8][19] - Power generation revenue was 703.67 billion yuan, a 3.4% increase year-on-year, while the average selling price decreased to 0.401 yuan per kWh, down 3.6% [8][19] Cost and Expenses - Total expenses for the first three quarters of 2024 were 91.83 billion yuan, a 3.4% increase year-on-year, with sales expenses rising by 10.16% [9][12] - The company maintained a high proportion of long-term contracts in coal sales, which accounted for 85.6% of total sales [15][16] Future Outlook - The report maintains earnings per share forecasts for 2024, 2025, and 2026 at 3.07, 3.09, and 3.20 yuan respectively, with a corresponding PE ratio of 13 times [9][12][23]