SLSVC(SH:600123) KAIYUAN SECURITIES·2025-08-29 11:43Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company's performance is under pressure due to falling coal prices, with a focus on coal mine growth and the recovery of urea profitability [2] - The company reported a revenue of 4.05 billion yuan for H1 2025, a year-on-year decrease of 26.1%, and a net profit attributable to shareholders of 57.48 million yuan, down 89.6% year-on-year [2] - The forecast for net profit attributable to shareholders for 2025-2027 is adjusted to 177 million, 443 million, and 511 million yuan respectively, reflecting a significant decline in 2025 followed by recovery in subsequent years [2] Summary by Sections Coal Business - In H1 2025, coal production and sales increased by 7.4% and 4.9% year-on-year, with Q2 showing a 5.7% and 9.3% increase respectively [3] - The average selling price of coal in H1 2025 was 486.0 yuan/ton, down 23.7% year-on-year, leading to a gross profit per ton of 208.7 yuan, a decrease of 26.1% [3] Coal Chemical Business - Urea production and sales in H1 2025 decreased by 15.1% and 17.3% year-on-year, with the average price dropping by 20.9% [4] - The gross profit per ton of urea fell to 99.4 yuan, a decline of 77.0% year-on-year [4] - The price of caprolactam also fell, resulting in a significant loss per ton, with a gross profit margin of -2691.9 yuan/ton in H1 2025 [4] Growth Potential - The company has secured coal exploration rights in Yangcheng County for 6.9494 billion yuan, which is expected to enhance resource reserves and lower costs in the future [5] - Ongoing investments in energy-saving and environmental protection projects are expected to improve profitability in the long term [5] Financial Summary and Valuation Metrics - Revenue for 2025 is projected at 10.117 billion yuan, with a year-on-year decline of 13.5% [6] - The net profit attributable to shareholders is expected to be 177 million yuan in 2025, reflecting a 75.4% decrease year-on-year [6] - The company's P/E ratio is projected to be 55.3, 22.1, and 19.1 for 2025, 2026, and 2027 respectively [6]