CHINA COAL ENERGY(SH:601898) EBSCN·2025-03-24 03:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [5]. Core Views - The company has shown resilience in its financial performance despite a slight decline in revenue and profit margins, with a focus on cost reduction to offset falling coal prices [1][2]. - The non-coal business segment has demonstrated stable profitability, particularly in financial services, which has seen growth [2]. - The company plans to distribute a total dividend of RMB 0.59 per share for 2024, resulting in a dividend payout ratio of 40.65% and an annual dividend yield of 5.79% [3]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of RMB 189.39 billion, a decrease of 1.9% year-on-year, and a net profit attributable to shareholders of RMB 19.32 billion, down 1.1% year-on-year [1]. - The fourth quarter of 2024 saw a significant increase in net profit, with a year-on-year growth of 65.5%, indicating a reduction in seasonal profit fluctuations [1]. Coal Business - The coal business generated revenue of RMB 160.71 billion in 2024, a decline of 1.2% year-on-year, with a gross profit of RMB 39.63 billion, down 2.2% [2]. - The company produced 137.57 million tons of coal in 2024, an increase of 2.5% year-on-year, while coal sales remained stable at 28.48 million tons [2]. - The average selling price of self-produced coal was RMB 562 per ton, a decrease of 6.6%, but the unit sales cost fell by 8.2% to RMB 282 per ton, helping to mitigate the impact of lower prices [2]. Non-Coal Business - The non-coal business segment reported a gross profit of RMB 7.73 billion, a decrease of 3.9% year-on-year, with financial services showing an 11.9% increase in gross profit [2]. - The financial services sector has been pivotal in enhancing value creation and ensuring efficient capital flow [2]. Dividend and Profit Forecast - The company’s profit distribution plan includes a total dividend of RMB 0.59 per share for 2024, with a dividend payout ratio exceeding 40% [3]. - The profit forecast for 2025 and 2026 has been adjusted downward, with expected net profits of RMB 17.31 billion and RMB 18.20 billion, respectively, reflecting a cautious outlook on coal prices [3][4].