XINJI ENERGY(SH:601918) CMS·2025-09-09 07:48Investment Rating - The report initiates coverage with an "Accumulate" investment rating for the company [1] Core Views - The company, Xinji Energy, is a major energy enterprise backed by China Coal, holding 40% of the coal resources among the four major coal companies in Anhui Province. The company is experiencing stable growth in coal production and sales, and the commissioning of new power generation units in 2026 is expected to significantly enhance performance [1][6] - The company has a clear path for capacity expansion, with the reconstruction of the Yangcun coal mine expected to increase total capacity to 28.5 million tons per year. The company also holds multiple exploration rights, which may further enhance long-term capacity [6][33] - Xinji Energy's coal products are of high quality, with low sulfur and environmental characteristics, which support stable pricing. The company has maintained a high proportion of long-term contracts, which helps mitigate market price fluctuations [6][50] - The company has a robust reserve of power projects, with a favorable supply-demand balance in Anhui Province, leading to stable electricity prices and utilization hours. The commissioning of new power plants is anticipated to significantly boost profitability [6][50] - The company has demonstrated steady revenue growth, with a projected revenue of 12.73 billion yuan in 2024, and a net profit of 2.39 billion yuan, marking a 13.44% year-on-year increase. The company has a high dividend potential, with a dividend payout of 0.16 yuan per share in 2024 [6][7] Summary by Sections Section 1: Overview of Xinji Energy - Xinji Energy is a coal and power integrated enterprise in Anhui Province, backed by China Coal Group. The company operates five production mines with a total capacity of 23.5 million tons per year and has a total installed capacity of 3.344 million kilowatts in operation [12][1] Section 2: Coal Business - The company has rich coal resources, with a total resource reserve of 10.16 billion tons, accounting for 40% of Anhui's total. The company is expected to increase its production capacity to 28.5 million tons per year following the reconstruction of the Yangcun coal mine [6][33] - The company has improved its coal washing efficiency, achieving a washing rate of 90.51% in 2023, which supports stable sales and production [42][47] Section 3: Power Business - Xinji Energy's power generation units are primarily located in Anhui Province, where the demand for electricity is growing rapidly. The company has several power plants under construction, expected to add 4.64 million kilowatts of capacity by 2026 [6][50] Section 4: Financial Performance - The company has shown strong financial performance, with a projected revenue of 12.73 billion yuan in 2024 and a net profit of 2.39 billion yuan, reflecting a 13.44% increase year-on-year. The company has a high dividend payout ratio, indicating strong cash flow and profitability [6][7]