hbky(SH:600985) Orient Securities·2026-03-31 02:34Investment Rating - The report maintains an "Accumulate" rating for Huabei Mining (600985.SH) with a target price of 18.34 CNY [7][4] Core Views - The company is expected to enter a profitable phase as ongoing projects are set to be completed within the year [2][3] - The company's earnings are projected to recover following the rebound in coking coal prices, with EPS estimates for 2026-2028 at 0.90, 1.31, and 1.54 CNY respectively [4][10] - Significant capital expenditures are anticipated to decrease as major projects reach completion, which will positively impact profitability [10][4] Financial Summary - Revenue for 2025 is reported at 41.125 billion CNY, a decline of 37.4% year-on-year, with a forecasted recovery to 44.464 billion CNY in 2026 [6][10] - The net profit attributable to the parent company for 2025 is 1.506 billion CNY, down 69.0% year-on-year, with a projected increase to 2.420 billion CNY in 2026 [6][10] - The gross margin is expected to improve from 18.4% in 2025 to 22.0% in 2026, reflecting better pricing and operational efficiency [6][10] - The company’s capital expenditure is projected to decrease significantly as major projects like the Tao Hutu coal mine and the power plant come online [10][4]