hbky(SH:600985) Haitong Securities·2024-11-01 01:43Investment Rating - The investment rating for Huabei Mining (600985) is "Outperform the Market" and is maintained [2] Core Views - The report highlights that the coal business is operating steadily, while there are expectations for marginal improvements in the chemical segment. The third quarter of 2024 saw a net profit attributable to the parent company of 1.2 billion yuan, reflecting a year-on-year decrease of 18% and a quarter-on-quarter decrease of 11% [5][6] - The company plans to absorb and merge its wholly-owned subsidiary, Qingdong Coal Industry, which is expected to enhance operational efficiency and improve overall performance [7] Summary by Sections Financial Performance - In Q3 2024, the company achieved a net profit of 1.2 billion yuan, with total revenue for the first three quarters reaching 56.67 billion yuan, a year-on-year increase of 2% but a net profit decrease of 18.2% [5] - The coal production and sales volume for the first three quarters were 15.67 million tons and 11.88 million tons, respectively, showing a year-on-year decrease of 6.4% and 13.9% [6] - The average selling price of coal in Q3 was 1,053 yuan per ton, down 7% year-on-year, while the unit cost was 541 yuan per ton, reflecting a slight increase [6] Business Segments - The report indicates that the coking and methanol production saw a recovery in Q3, with methanol production volume increasing by 16.1% year-on-year [7] - The ethanol project is expected to contribute to profits, with a production volume of 224,000 tons and an average selling price of 5,223 yuan per ton [7] Earnings Forecast and Valuation - The forecast for net profit attributable to the parent company for 2024-2026 is 5.14 billion, 7.18 billion, and 7.92 billion yuan, respectively, with corresponding EPS of 1.91, 2.66, and 2.94 yuan [7][12] - The report assigns a PE ratio of 9-11 times for 2024, suggesting a reasonable value range of 17.17 to 20.98 yuan per share [7]