MJNY(SZ:000723) Guohai Securities·2024-11-08 05:54Investment Rating - The report assigns a "Neutral" rating for Meijin Energy (000723) as it initiates coverage [2][6]. Core Views - The company has shown a significant improvement in Q3, achieving a quarter-on-quarter turnaround to profitability, likely due to increased production and a notable reduction in management expenses [3][6]. - The ongoing asset injection process is expected to enhance the company's coal resources and strengthen the synergy between coal and coke operations [3][6]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 14.37 billion yuan, a year-on-year decrease of 3.2%, and a net profit attributable to shareholders of -650 million yuan, a year-on-year decline of 261% [3]. - In Q3 2024, the company achieved revenue of 5.56 billion yuan, a quarter-on-quarter increase of 20% and a year-on-year increase of 9%. The net profit attributable to shareholders was 30 million yuan, marking a turnaround from losses, although it was down 15% year-on-year [3][4]. - The company anticipates revenue growth for 2024-2026, projecting revenues of 19.8 billion yuan, 23.1 billion yuan, and 26.5 billion yuan respectively, with corresponding net profits of -530 million yuan, 350 million yuan, and 540 million yuan [4][6]. Production and Market Conditions - Q3 production levels are expected to have recovered, with a reported 8% increase in coal production in Shanxi province compared to Q2 [3]. - The price of metallurgical coke in Shanxi has seen a slight increase in Q4, which may further improve the company's performance [3]. Asset Injection Details - The company plans to acquire 51% of Jinyuan Coal Mine and 49% of Zhengwang Coal Industry and Zhengcheng Coal Industry through a share issuance, which is expected to significantly enhance its coal resource reserves [3][6].