pingmei coal(601666) 国投证券·2024-10-29 02:23Investment Rating - The investment rating for the company is "Buy - A" with a 12-month target price of 11.97 CNY [6]. Core Views - The company reported a revenue of 23.319 billion CNY for the first nine months of 2024, a year-on-year increase of 0.78%, while the net profit attributable to shareholders was 2.045 billion CNY, up 34.91% year-on-year [1]. - The company is focusing on cost optimization in its coal business to mitigate the impact of declining volume and price [2]. - The company plans to establish a joint venture in Xinjiang to participate in coal resource development, indicating a strategic move to expand its operational footprint [3]. - The company has shown confidence in its long-term development through management and shareholder buybacks, alongside an employee stock ownership plan [3]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 7.008 billion CNY, a decrease of 1.90% year-on-year, and a net profit of 652 million CNY, down 27.89% year-on-year [1]. - The coal production for the first three quarters of 2024 was 21.0601 million tons, a decrease of 8.65% year-on-year, while the sales volume of commercial coal was 20.0818 million tons, down 13.09% year-on-year [2]. - The average selling price of commercial coal was 1,032.57 CNY/ton, an increase of 8.17% year-on-year, while the average cost was 718.02 CNY/ton, up 11.05% year-on-year [2]. Future Projections - The company is expected to achieve revenues of 30.446 billion CNY, 32.190 billion CNY, and 32.445 billion CNY for 2024, 2025, and 2026, respectively, with growth rates of -3.5%, 5.7%, and 0.8% [8]. - Net profits are projected to be 2.734 billion CNY, 3.129 billion CNY, and 3.301 billion CNY for the same years, with growth rates of -31.7%, 14.5%, and 5.5% [8].