SHANGHAI ENERGY(SH:600508) KAIYUAN SECURITIES·2025-03-25 16:00Investment Rating - The investment rating for Shanghai Energy is "Buy" (maintained) [2][4] Core Views - The report highlights that the decline in coal prices has put pressure on the company's overall performance for the year, with a focus on the potential for net asset value recovery and increased dividends [4][6] - For 2024, the company reported a revenue of 9.49 billion yuan, a year-on-year decrease of 13.6%, and a net profit attributable to shareholders of 720 million yuan, down 26.2% year-on-year [4][5] - The report anticipates a recovery in profitability in 2025-2027, with projected net profits of 530 million yuan, 630 million yuan, and 700 million yuan respectively, reflecting a year-on-year change of -26.6%, +19.2%, and +11% [4][7] Financial Performance Summary - In 2024, the company achieved a coal production of 8.582 million tons, an increase of 6.9% year-on-year, while the sales volume of commercial coal was 6.318 million tons, a decrease of 2.7% year-on-year [5][6] - The average selling price of commercial coal in 2024 was 995.9 yuan per ton, down 8.5% year-on-year, while the cost per ton was 699.3 yuan, a decrease of 1.3% year-on-year [5][6] - The gross profit margin for commercial coal in 2024 was 296.6 yuan per ton, down 21.8% year-on-year [5][10] Future Outlook - The company is expected to benefit from its coal and power integration strategy, with ongoing projects such as the 240,000-ton Weizigou coal mine expected to commence trial operations by the end of 2025 [6][7] - The report notes that the company's price-to-book (PB) ratio is currently at 0.7, indicating a significant discount and potential for valuation recovery [6][7] - The dividend payout ratio for 2024 was 40.4%, an increase of 9.82 percentage points year-on-year, with expectations for further increases in the future [6][7]