Shenwan Hongyuan Securities·2025-08-26 07:13Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook compared to the market [8]. Core Views - The company reported a slight decline in performance for the first half of 2025, with revenue of 74.44 billion yuan, down 20% year-on-year, and a net profit of 7.71 billion yuan, down 21.3% year-on-year. The earnings slightly exceeded market expectations [8]. - The company plans to distribute a cash dividend of 0.166 yuan per share, totaling 2.198 billion yuan, with a dividend payout ratio of 28.5% [8]. - The company experienced a minor increase in self-produced coal sales, while the overall coal sales volume decreased by 3.6% year-on-year. The average selling price of self-produced coal fell by 19.5% [8]. - The company is optimizing its debt structure, resulting in reduced financial expenses and a decrease in total expenses by 8.8% year-on-year [8]. - The company is advancing its construction projects, including coal-electricity integration and renewable energy initiatives [8]. - Due to a decline in coal prices, the profit forecasts for 2025-2027 have been adjusted downward, with the current market valuation reflecting a discount compared to comparable companies [8]. Financial Data and Profit Forecast - Total revenue for 2025 is projected at 171.16 billion yuan, with a year-on-year decline of 9.6% [2]. - The net profit for 2025 is estimated at 16.35 billion yuan, reflecting a year-on-year decrease of 15.4% [2]. - The earnings per share for 2025 is expected to be 1.23 yuan [2]. - The gross profit margin is projected to be 23.8% for 2025 [2]. - The return on equity (ROE) is forecasted at 10.7% for 2025 [2]. Market Data - As of August 25, 2025, the closing price of the company's stock was 12.25 yuan, with a market capitalization of 112.11 billion yuan [3]. - The price-to-earnings (P/E) ratio for 2025 is projected at 10 [2][3]. - The company has a dividend yield of 1.80% based on the most recent dividend announcement [3].