SLSVC(SH:600123) KAIYUAN SECURITIES·2024-10-29 02:14Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a decline in production and sales in Q3, leading to pressure on performance. The focus is on growth, share buybacks, and dividends [3] - For the first three quarters of 2024, the company achieved operating revenue of 8.42 billion yuan, a year-on-year decrease of 12.3%, and a net profit attributable to shareholders of 710 million yuan, down 60.7% year-on-year [3] - The report anticipates a decrease in net profit for 2024-2026, with expected figures of 940 million yuan, 1.24 billion yuan, and 1.43 billion yuan respectively, reflecting a year-on-year change of -55.4%, +33%, and +15.3% [3] Summary by Sections Financial Performance - In Q3 2024, the company achieved operating revenue of 2.94 billion yuan, a quarter-on-quarter decrease of 8.5%, and a net profit of 160 million yuan, down 62.8% quarter-on-quarter [3] - The coal production and sales volume for the first three quarters of 2024 was 10.49 million tons and 8.87 million tons, respectively, with a year-on-year change of +4.9% and -1.2% [3] - The average selling price of coal for the first three quarters was 633.5 yuan per ton, down 15.5% year-on-year [3] Coal Business - Q3 coal production and sales volume decreased by 12.6% and 7.8% quarter-on-quarter, respectively [3] - The average cost of coal for Q3 was 363.7 yuan per ton, up 4.9% quarter-on-quarter, leading to a gross profit margin of 263.3 yuan per ton, down 10.5% quarter-on-quarter [3] Chemical Business - Urea production and sales volume for Q3 was 25.7 thousand tons and 23.3 thousand tons, with a quarter-on-quarter decrease of 0.2% and 17.7% respectively [3] - The average price of urea in Q3 was 1866 yuan per ton, down 6.7% quarter-on-quarter, resulting in a gross profit margin of 236 yuan per ton, down 43.9% quarter-on-quarter [3] Growth Potential - The company has growth potential in coal production capacity, with ongoing projects expected to contribute to future output [3] - The dividend payout ratio for 2023 reached 53.1%, an increase of 17.7 percentage points compared to 2022, and the company has initiated a share buyback program [3]