hbky(SH:600985) KAIYUAN SECURITIES·2025-05-08 00:23Investment Rating - The investment rating for Huabei Mining is "Buy" (maintained) [2] Core Views - The report highlights that the company achieved a revenue of 10.6 billion yuan in Q1 2025, a year-on-year decrease of 39% but a quarter-on-quarter increase of 16.6%. The net profit attributable to shareholders was 690 million yuan, down 56.5% year-on-year and down 3.4% quarter-on-quarter. The report also notes a decrease in coal production and sales volume, with a focus on cost reduction to mitigate the impact of falling coal prices [4][5][6] Summary by Sections Financial Performance - In Q1 2025, the company reported a revenue of 10.6 billion yuan, a year-on-year decline of 39% and a quarter-on-quarter increase of 16.6%. The net profit attributable to shareholders was 690 million yuan, down 56.5% year-on-year and down 3.4% quarter-on-quarter. The adjusted net profit after excluding non-recurring items was 670 million yuan, a year-on-year decrease of 57% but a quarter-on-quarter increase of 19.9% [4][5] Production and Sales - The company's coal production and sales volume in Q1 2025 were 430.8 million tons and 297.2 million tons, respectively, representing a year-on-year decline of 17.7% and 26.2%, and a quarter-on-quarter decline of 11.8% and 14.8% [4][5] - The average selling price of coal in Q1 2025 was 937.8 yuan per ton, down 20.3% year-on-year and down 10.8% quarter-on-quarter. The cost per ton of coal was 519.9 yuan, down 12.3% year-on-year and down 3.4% quarter-on-quarter, resulting in a gross profit of 417.9 yuan per ton, down 28.4% year-on-year and down 18.7% quarter-on-quarter [4][5] Growth Potential - The report emphasizes the company's growth potential in coal mining and coal chemical projects, with ongoing construction of significant projects such as the 800,000 tons/year Tohutu Mine and the 300,000 tons/year Xinh Lake Coal Mine. The company is also advancing coal chemical projects with a focus on deep utilization of by-products [6] - The company is currently in a state of undervaluation, with a price-to-book ratio (PB) of 0.76 as of May 6, 2025. The report mentions an increase in the minimum dividend payout ratio from 30% to 35%, which could support valuation recovery [6]