lu'an EED(SH:601699) Ping An Securities·2025-05-07 10:00Investment Rating - The investment rating for the company is "Recommended" [1] Core Views - The company is experiencing a decline in coal prices, which has reached a bottom range, and is awaiting a turning point in coal consumption during the peak season [1][7] - The company reported a significant decrease in revenue and net profit for 2024, with revenue of 35.85 billion yuan, down 16.89% year-on-year, and a net profit of 2.45 billion yuan, down 69.08% year-on-year [3][5] - The company maintains a stable production and sales volume despite market pressures, with a slight recovery in coal production expected in Q1 2025 [6][7] Financial Summary - For 2024, the company achieved a revenue of 35.85 billion yuan, with a year-on-year decline of 16.89%, and a net profit of 2.45 billion yuan, down 69.08% year-on-year [3][5] - The company's coal production for 2024 was 57.57 million tons, a decrease of 4.8% year-on-year, while the sales volume was 52.25 million tons, down 5.0% year-on-year [6] - The average selling price of coal in 2024 was 645.64 yuan per ton, a decrease of 82.0 yuan per ton year-on-year [6] - The company has a projected revenue of 36.06 billion yuan for 2025, with a slight increase expected [5][9] Market Outlook - The coal market is under pressure, but the company is well-positioned to benefit from potential recovery in coal prices as the summer consumption season approaches [7] - The company has successfully acquired exploration rights for coal resources, which may enhance its resource base and support future production [6][7] - The financial structure of the company has improved significantly, with reduced debt levels and increased cash flow, providing a solid foundation for future growth [7]