Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 3.40 [7][8]. Core Views - The company reported a revenue of HKD 5.06 billion for 2024, a decrease of 14.2% year-on-year, primarily due to a decline in average selling prices and increased production costs [1][2]. - Despite the revenue decline, the company declared a total dividend of HKD 0.30 per share, an increase of 7.1% year-on-year, with a dividend payout ratio reaching 100% [1][2]. - The company has a strong asset base and stable operations, which supports its high dividend yield of 11.5% [1]. Revenue and Profitability - The company achieved a net profit of HKD 1.49 billion in 2024, down 20.9% year-on-year, with a gross profit margin of 51.2% [5][13]. - The average selling price of premium coking coal decreased by 13.8% year-on-year, which was more significant than the market average decline [2][3]. Production and Cost Management - The company produced 4.96 million tons of raw coking coal in 2024, a decrease of 5.5% year-on-year, but production is expected to recover in the second half of 2024 [2][3]. - The production cost of raw coal increased by 7% year-on-year to HKD 429 per ton, influenced by various cost factors including resource taxes and labor [3][4]. Financial Forecast and Valuation - The forecasted net profit for 2025 is adjusted to HKD 1.05 billion, reflecting a 39% decrease from previous estimates [4][12]. - The valuation method has been adjusted to a Dividend Discount Model (DDM), with a conservative assumption of an 80% dividend payout ratio and a target price of HKD 3.40 [4][12]. Key Financial Metrics - The company's earnings per share (EPS) for 2024 is projected at HKD 0.30, with a price-to-earnings (PE) ratio of 8.67 [5][21]. - The return on equity (ROE) is expected to decline to 9.12% in 2024, down from 11.43% in 2023 [5][21].
首钢资源（00639）：分红逆势增长突显高股息配置价值