DTCIC(601001) Xinda Securities·2024-10-28 23:00Investment Rating - The investment rating for Jin Control Coal Industry (601001) is not explicitly stated in the provided documents, but the report indicates a positive outlook based on operational improvements and financial metrics [1]. Core Views - The report highlights that Jin Control Coal Industry has shown improvements in its quarterly earnings and further optimization of its balance sheet. The company achieved an operating revenue of 11.234 billion yuan, a slight year-on-year decrease of 0.19%, and a net profit attributable to shareholders of 2.151 billion yuan, down 0.62% year-on-year. However, the net profit after deducting non-recurring items increased by 1% year-on-year [1]. - The report emphasizes that the coal business remains stable in terms of volume and price, with a slight increase in coal production and a stable selling price. The company’s cash flow from operating activities decreased by 24.71% year-on-year, indicating some liquidity challenges [1]. - The report projects that the company’s net profit attributable to shareholders will increase over the next few years, with estimates of 2.81 billion yuan, 3.056 billion yuan, and 3.303 billion yuan for 2024, 2025, and 2026 respectively [1][2]. Financial Summary - For the first three quarters of 2024, the company produced 25.7941 million tons of raw coal, a year-on-year increase of 1.5%, while the sales volume of commercial coal was 22.0696 million tons, a slight decrease of 0.3%. The selling price of commercial coal remained stable at 494.20 yuan per ton [1]. - The company’s total revenue for 2024 is projected to be 14.462 billion yuan, reflecting a year-on-year decrease of 5.7%, with a net profit of 2.81 billion yuan, down 14.9% year-on-year. The gross profit margin is expected to decline to 47.1% in 2024 [2]. - The balance sheet shows a decrease in total liabilities, with a debt ratio of 30.0%, down 7.4 percentage points year-on-year, indicating improved financial stability [1][3]. Operational Insights - The report notes that management and financial expenses have decreased significantly, contributing to a more favorable cash flow situation. Management expenses dropped by 21.9% year-on-year, and financial expenses decreased by 57.8% [1]. - The company has a strong liquidity position, with cash and cash equivalents amounting to 15.98 billion yuan, representing 88.4% of the equity attributable to shareholders [1]. Earnings Forecast - The earnings per share (EPS) for the next three years are projected to be 1.68 yuan, 1.83 yuan, and 1.97 yuan for 2024, 2025, and 2026 respectively, reflecting a gradual recovery in profitability [2][3].