Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company reported a revenue of 1.089 billion RMB for the first half of 2025, an increase of 596 million RMB year-on-year, but incurred a net loss of 163 million RMB compared to a profit of 60.8 million RMB in the same period last year. The loss is primarily due to the cessation of operations at certain mines in Shanxi due to resource depletion, which will no longer negatively impact the company's performance as these will be divested [1][2] - The company is optimizing its financial metrics by removing loss-making operations from its consolidated financial statements, allowing it to focus on coal mining development in Indonesia [2] - The production from the SDE coal mine continues to grow, and the company is deepening its business in Indonesia [3] Financial Projections - The company is expected to recover its performance in the second half of the year, with projected net profits for 2025-2027 being 160 million RMB, 680 million RMB, and 1.15 billion RMB respectively, corresponding to P/E ratios of 36.2X, 8.3X, and 4.9X [4] - The company has made several acquisitions to increase its stake in Indonesian coal mines, enhancing its profitability [9] - The SDE coal mine's raw coal production reached 2.05 million tons in the first half of 2025, significantly up from 755,000 tons in the same period last year, with a daily production peak of 27,000 tons [9] Financial Metrics - The company’s total revenue for 2025 is projected to be 2.134 billion RMB, with a year-on-year decline of 17.9%, followed by a recovery in 2026 with a projected revenue of 3.087 billion RMB, and 5.198 billion RMB in 2027 [10] - The net profit for 2025 is expected to be 156 million RMB, with a significant increase to 684 million RMB in 2026 and 1.152 billion RMB in 2027 [10] - The company’s asset-liability ratio is projected to improve, with a decrease from 95.9% in 2023 to 55.3% in 2025 [11]
中国秦发（00866）：印尼业务满意答卷，持续深化，轻装上阵，宏图大展