hbky(SH:600985) Guohai Securities·2026-03-30 10:03Investment Rating - The investment rating for Huabei Mining (600985) is "Buy" (maintained) [1] Core Insights - The report indicates that Huabei Mining is expected to see a recovery in both volume and price in 2026, marking a turning point in profitability after a challenging 2025 [1][5][10] - The company reported a significant decline in revenue and net profit for 2025, with revenue at 41.1 billion yuan, down 37% year-on-year, and net profit at 1.5 billion yuan, down 69% year-on-year [5][10] - The report highlights that the coal business faced challenges in 2025, with both production and sales volumes decreasing, alongside a drop in coal prices [6][10] Financial Performance Summary - For 2025, Huabei Mining produced 17.384 million tons of coal, a decrease of 15.4% year-on-year, and sold 13.311 million tons, down 13.4% year-on-year. The average selling price of coal was 806.9 yuan per ton, down 26.7% year-on-year [6] - The cost of coal production was 474.0 yuan per ton, a decrease of 14.3% year-on-year, while the gross profit per ton of coal was 333 yuan, down 39.2% year-on-year [6] - In Q4 2025, the company saw a recovery with a revenue of 9.3 billion yuan, a decrease of 17% quarter-on-quarter, but a significant increase in net profit to 400 million yuan, up 1025% quarter-on-quarter [5][6] Business Segment Analysis - The coal chemical business showed mixed results in 2025, with ethanol production increasing significantly, while overall coal chemical business experienced volume growth but price declines [6] - In 2025, the production of coke was 3.6157 million tons, up 2.0% year-on-year, while the average price was 1446 yuan per ton, down 26.3% year-on-year [6] - Methanol production increased by 71.0% year-on-year to 697,000 tons, while ethanol production rose by 47.3% year-on-year to 547,000 tons [6] Future Projections - The company is projected to achieve revenues of 47.356 billion yuan in 2026, representing a 15% increase year-on-year, and net profit of 3.124 billion yuan, a 107% increase year-on-year [9][10] - Earnings per share (EPS) are expected to rise to 1.16 yuan in 2026, with a price-to-earnings (P/E) ratio of 12.02 [9][10] - The report anticipates continued growth in coal production and sales, particularly with the expected completion of new projects in 2026 [10]