pingmei coal(SH:601666) Xinda Securities·2024-03-18 16:00Investment Rating - The investment rating for Pingmei Shenma Group is "Buy" [1] Core Views - The report highlights that cost control has significantly mitigated the impact of falling coal prices on performance, maintaining a high gross margin [1] - The company has focused on improving profitability in its core business, with expectations for future earnings growth [2] - The report anticipates a recovery in revenue and profit margins in the coming years, driven by strategic initiatives and market conditions [2] Summary by Relevant Sections Financial Performance - In 2023, the company achieved operating revenue of 31,561 million, a year-on-year decrease of 12.44% [1] - The net profit attributable to shareholders was 4,003 million, down 30.3% year-on-year [3] - The gross margin for the year was 31.5%, a decline of 3.09 percentage points compared to the previous year [3] Production and Sales - The company produced 30.71 million tons of raw coal in 2023, an increase of 1.34% year-on-year [1] - The sales volume of commercial coal reached 31.03 million tons, up 0.34% year-on-year [1] - The average selling price of commercial coal was 964 yuan per ton, down 13.75% year-on-year due to lower coal prices [1] Future Outlook - The report projects net profits for 2024, 2025, and 2026 to be 4,591 million, 5,040 million, and 5,411 million respectively, with corresponding EPS of 1.96, 2.15, and 2.31 yuan per share [2] - The anticipated P/E ratios for 2023-2025 are 6.09, 5.55, and 5.17 times, indicating potential for earnings growth [2] - The company has committed to a cash dividend payout ratio of no less than 60% over the next three years, enhancing shareholder returns [2]