SHCI(601225) Xinda Securities·2024-10-30 07:48Investment Rating - The investment rating for Shaanxi Coal and Chemical Industry (601225.SH) is "Buy," maintaining the previous rating of "Buy" [1]. Core Views - The company reported a steady operational performance, with a focus on the integrated coal and power development strategy, which is expected to enhance future performance [1]. - In the first three quarters of 2024, the company achieved a revenue of CNY 125.43 billion, a year-on-year decrease of 1.54%, and a net profit attributable to shareholders of CNY 15.943 billion, down 1.46% year-on-year [1]. - The company’s coal production for the first three quarters was 127.77 million tons, an increase of 2.82% year-on-year, while coal sales reached 195.94 million tons, up 5.09% year-on-year [1]. Financial Performance Summary - For Q3 2024, the company reported a revenue of CNY 40.69 billion, a year-on-year increase of 10.66%, but a quarter-on-quarter decrease of 8.12% [1]. - The net profit for Q3 2024 was CNY 5.387 billion, reflecting a year-on-year increase of 17.1% and a quarter-on-quarter decrease of 8.75% [1]. - The average selling price of coal in the first three quarters was CNY 618 per ton, down 6.24% year-on-year, while the unit sales cost was CNY 404 per ton, down 2.51% year-on-year [1][3]. Strategic Developments - Shaanxi Coal Group increased its shareholding in the company to 65.25% through a buyback of 12.13 million A-shares, reflecting confidence in the company's long-term value [1]. - The company signed an asset transfer intention agreement with its controlling shareholder to acquire shares in Shaanxi Coal Power Group, which aligns with its strategy to develop a "coal and power integration" operational model [1]. - The integrated coal and power strategy is expected to enhance revenue, reduce related transactions, and promote high-quality development [1]. Earnings Forecast - The company is projected to achieve net profits of CNY 21.8 billion, CNY 22.3 billion, and CNY 23.3 billion for the years 2024, 2025, and 2026, respectively [1]. - The expected EPS for the same period is CNY 2.24, CNY 2.30, and CNY 2.40, with corresponding P/E ratios of 11.14, 10.85, and 10.42 [1][3].