SHENHUO COAL&POWER(SZ:000933) Western Securities·2025-10-22 08:38Investment Rating - The investment rating for the company is "Buy" [6] Core Views - The company reported a revenue of 31.005 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 9.50%. The net profit attributable to shareholders was 3.490 billion yuan, a decrease of 1.38% year-on-year, while the net profit after deducting non-recurring gains and losses was 3.579 billion yuan, an increase of 4.87% year-on-year [2][6] - The third quarter of 2025 showed strong performance with a revenue of 10.576 billion yuan, a year-on-year increase of 4.79%. The net profit attributable to shareholders was 1.585 billion yuan, a year-on-year increase of 26.39%, and the net profit after deducting non-recurring gains and losses was 1.569 billion yuan, a year-on-year increase of 24.89% [2] - The company’s operating cash flow reached 6.898 billion yuan, an increase of 8.56% year-on-year, and the asset-liability ratio decreased to 51.06%, down 2.32 percentage points from the previous year [2] - The company is expected to benefit from a favorable situation of simultaneous growth in coal and aluminum as coal prices have started to recover and the fourth quarter is typically a peak season [3] - The company has been increasing its cash dividend payout from 22.51 billion yuan in 2022 to an expected 17.92 billion yuan in 2024, with a rising dividend payout ratio [3] - Earnings per share (EPS) for 2025-2027 are projected to be 2.41, 2.67, and 2.96 yuan, with price-to-earnings (PE) ratios of 10, 9, and 8 respectively [4] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 31.005 billion yuan, with a net profit of 3.490 billion yuan, and a net profit after deducting non-recurring items of 3.579 billion yuan [2] - In Q3 2025, the company reported a revenue of 10.576 billion yuan and a net profit of 1.585 billion yuan, showing significant growth compared to the previous year [2] Market Outlook - The company is positioned to benefit from rising coal prices and an expected increase in demand during the peak season, which could lead to improved performance in both coal and aluminum sectors [3] Dividend Policy - The company has shown a commitment to shareholder returns with increasing cash dividends and a planned share buyback for employee incentives [3] Earnings Forecast - The projected EPS for the next three years indicates a positive growth trend, with a decreasing PE ratio suggesting potential undervaluation [4]