SHCI(SH:601225) Huachuang Securities·2025-11-23 04:35Investment Rating - The report maintains a "Strong Buy" rating for Shaanxi Coal and Chemical Industry Co., Ltd. (601225) [1] Core Views - The company's revenue for the first three quarters of 2025 was CNY 118.08 billion, a year-on-year decrease of 12.81%. The net profit attributable to shareholders was CNY 12.71 billion, down 27.22% year-on-year [1] - The report highlights that coal prices are on the rise, supporting profit recovery, and the coal-electricity integration strengthens long-term advantages [1] - The report anticipates that coal prices will continue to rise in the fourth quarter due to increased winter storage demand from downstream power plants and stricter safety inspections affecting coal production [7] Financial Performance Summary - For Q3 2025, the company achieved revenue of CNY 40.10 billion, a year-on-year decrease of 20.91%, but a quarter-on-quarter increase of 6.03%. The net profit attributable to shareholders was CNY 5.07 billion, down 26.59% year-on-year but up 79.08% quarter-on-quarter [1] - The average selling price of coal for the first three quarters of 2025 was CNY 540.2 per ton, a decrease of 12.63% year-on-year, while the production and sales volumes were 130.37 million tons and 189.20 million tons, respectively, showing slight year-on-year increases of 2.03% and 0.40% [7] - The report projects net profits for 2025-2027 at CNY 17.94 billion, CNY 20.59 billion, and CNY 23.35 billion, respectively, with corresponding PE ratios of 12x, 11x, and 10x [7] Market Position and Strategy - The company is enhancing its coal production capacity, with recent approvals for capacity increases at its coal mines, which will contribute to stable growth in its coal business [7] - The integration of coal and electricity production is expected to improve the company's profitability, creating a complete industrial chain from coal mining to electricity generation [7] - The current dividend yield is approximately 4.8%, based on a 60% payout ratio for 2025 [7]