hbky(SH:600985) Shanxi Securities·2025-05-12 12:23Investment Rating - The investment rating for Huabei Mining (600985.SH) is "Accumulate-A" (maintained) [1] Core Views - The company's performance has been negatively impacted by the decline in coal prices and volumes, with a significant drop in revenue and net profit in Q1 2025 compared to the previous year [4][5] - Despite the current challenges, there is potential for growth in both the coal and coal chemical sectors, supported by ongoing projects and the recovery of production capacity [6][7] Summary by Sections Market Data - Closing price as of May 12, 2025: 12.08 CNY - Year-to-date high/low: 20.18/11.76 CNY - Circulating A shares/Total shares: 26.93 billion/26.93 billion - Market capitalization: 325.35 billion CNY [2] Financial Performance - Q1 2025 revenue: 10.567 billion CNY, down 39% YoY - Q1 2025 net profit: 0.692 billion CNY, down 56.5% YoY - Basic earnings per share: 0.26 CNY, down 59.38% YoY - Cash flow from operating activities: 0.44 billion CNY, down 72.87% YoY [4][5] Production and Sales - Q1 2025 coal production: 4.308 million tons, down 17.73% YoY - Q1 2025 coal sales: 2.972 million tons, down 26.18% YoY - Average coal price: 937.77 CNY/ton, down 20.29% YoY - Gross profit per ton of coal: 417.90 CNY/ton, down 28.41% YoY [5] Future Outlook - Expected EPS for 2025-2027: 1.52, 1.89, 1.93 CNY, with corresponding dynamic PE ratios of 7.9, 6.3, and 6.2 times [7] - The company is focusing on integrated operations in coal, coke, and chemicals, which is expected to stabilize performance [7]