SHCI(601225) 国盛证券·2024-12-08 06:33Investment Rating - The report maintains a "Buy" rating for Shaanxi Coal and Chemical Industry Co., Ltd. (601225.SH) [3][6]. Core Views - The acquisition of an 88.6525% stake in Shaanxi Coal Power Group is expected to enhance the company's profitability and support its "coal-electricity integration" strategy, potentially reducing performance volatility and improving valuation levels [3][2]. - The acquisition price of 15.7 billion CNY reflects a 50.31% premium over the assessed net asset value of 17.7 billion CNY, indicating significant value addition [2]. - The expected annualized profit contribution from the acquired entity is projected to be 1.45 billion CNY [3]. Financial Summary - Revenue for Shaanxi Coal Power Group for the first ten months of 2024 was 11.74 billion CNY, with a net profit of 1.65 billion CNY [2]. - The company’s projected net profits for 2024, 2025, and 2026 are estimated at 20.2 billion CNY, 21.9 billion CNY, and 23.4 billion CNY, respectively, with corresponding P/E ratios of 11.9X, 11.0X, and 10.3X [3][5]. - The company reported a revenue of 170.87 billion CNY in 2023, with a net profit of 21.24 billion CNY, reflecting a year-over-year decline of 39.7% [5][14]. Cash Flow and Financial Ratios - Operating cash flow for 2023 is reported at 38.6 billion CNY, with a projected decrease to 38.4 billion CNY in 2024 [13]. - The company’s net profit margin for 2022 was 21.1%, with a return on equity (ROE) of 36.8% [14]. - The projected earnings per share (EPS) for 2024 is 2.09 CNY, down from 2.19 CNY in 2023 [5][15].