CSEC,China Shenhua(601088) 长江证券·2025-03-31 08:15Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a net profit attributable to shareholders of 58.671 billion yuan for 2024, a year-on-year decrease of 1.7%. In the fourth quarter alone, the net profit was 12.597 billion yuan, reflecting a year-on-year increase of 10% but a quarter-on-quarter decrease of 24% [2][6]. - The cash dividend amount reached 44.903 billion yuan, with an A-share dividend payout ratio of 76.53%, an increase of 1.31 percentage points year-on-year, resulting in a dividend yield of 6.0% based on the closing price on March 25 [2][6]. - On March 25, it was reported that Ruizhong Life Insurance increased its stake in the company from 4.97% to 5.00%, indicating a strong demand for high-dividend assets and recognition of the company's value as a leading coal producer [2][6]. Summary by Sections Financial Performance - The company achieved a total revenue of 338.375 billion yuan in 2024, with a gross profit margin of 34% [17]. - The coal business saw a total sales volume of 459.3 million tons, a year-on-year increase of 2.1%, while the average coal price decreased by 3.4% to 564 yuan per ton [12]. - The electricity segment benefited from new unit production, with a total power generation and sales volume of 2,232.1 billion kWh and 2,102.8 billion kWh, respectively, both up by approximately 5% year-on-year [12]. Business Segments - The railway and shipping segments showed improved performance, with railway profits up by 13.8% year-on-year, while shipping profits surged by 160% due to increased sea freight rates [12]. - The company is focusing on resource expansion and integrated coal, electricity, and chemical operations, with significant growth expected from new projects and acquisitions [12]. Dividend Policy - The company has committed to a dividend payout of no less than 65% of the net profit attributable to shareholders for the years 2025-2027, with plans for mid-term profit distribution [12]. - The increase in dividend payout and the strategic investment by Ruizhong Life Insurance highlight the company's long-term value as a high-dividend leader in the coal sector [12].