SHANGHAI ENERGY(SH:600508) ZHONGTAI SECURITIES·2026-03-30 08:44Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company's coal business faced profitability pressure due to declining coal prices, but Q4 saw a significant recovery in gross profit per ton of coal [5] - The company has announced a high dividend payout and stock transfer plan, enhancing shareholder returns [6] - The company is expected to see revenue growth in the coming years, with projections of 8.41 billion, 8.89 billion, and 9.29 billion yuan for 2026, 2027, and 2028 respectively [6][7] Financial Summary - The company reported a revenue of 7.68 billion yuan in 2025, a year-on-year decrease of 19% [4] - The net profit attributable to the parent company was 220 million yuan in 2025, down 69% year-on-year [4] - The earnings per share (EPS) for 2025 was 0.31 yuan, a decrease of 68.69% year-on-year [6] - The company plans to distribute a cash dividend of 3.0 yuan per 10 shares, with a cash dividend ratio of 98.36% [6] - The projected earnings per share for 2026, 2027, and 2028 are 0.89 yuan, 0.94 yuan, and 1.06 yuan respectively [6][7] Operational Performance - The company achieved a coal revenue of 4.52 billion yuan in 2025, down 28.18% year-on-year [6] - The total coal production was 8.10 million tons, a decrease of 5.64% year-on-year [6] - The company’s electricity revenue was 1.92 billion yuan in 2025, a slight decrease of 2.23% year-on-year, while electricity generation increased by 11% [6] Valuation Metrics - The projected P/E ratios for 2026, 2027, and 2028 are 16.0X, 15.1X, and 13.4X respectively [7] - The company is considered undervalued with a low P/B ratio of 0.8 [4][7]