CHINA COAL ENERGY(SH:601898) Guotou Securities·2024-03-25 16:00Investment Rating - The investment rating for the company is "Add - A" with a 6-month target price of 13.52 CNY [3]. Core Views - The company reported a revenue of 192.97 billion CNY in 2023, a decrease of 12.5% year-on-year, while the net profit attributable to shareholders was 19.53 billion CNY, an increase of 7.0% year-on-year [1]. - The coal business showed growth in production and sales, with a total coal output of 134.22 million tons, up 12.6% year-on-year, and sales of 133.91 million tons, up 11.3% year-on-year [1]. - The company is focusing on cost control, achieving a unit cost of self-produced coal at 307 CNY/ton, down 4.9% year-on-year, despite a decrease in coal prices [1]. - The chemical products segment saw a slight increase in gross margin, with a chemical business gross margin of 15.4%, up from 13.3% in 2022 [2]. - The company plans to invest 160.1 billion CNY in 2024, with significant allocations to coal, coal chemical, coal power, and new energy sectors [7]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 192.97 billion CNY, with a net profit of 19.53 billion CNY, reflecting a 7.0% increase year-on-year [1]. - The company plans to increase its revenue to 203.38 billion CNY in 2024, with a projected net profit of 21.11 billion CNY, representing an 8.1% growth [8]. Coal Business - The company produced 134.22 million tons of coal in 2023, with a sales volume of 133.91 million tons, marking increases of 12.6% and 11.3% year-on-year, respectively [1]. - The unit price of self-produced coal was 602 CNY/ton, down 15.9% year-on-year, while the unit cost decreased to 307 CNY/ton [1]. Chemical Products - The sales volumes for polyethylene, polypropylene, urea, methanol, and ammonium nitrate were 763,000 tons, 716,000 tons, 2.141 million tons, 1.919 million tons, and 587,000 tons, respectively [2]. - The gross margin for the chemical business improved to 15.4% in 2023, up from 13.3% in 2022 [2]. Capital Expenditure and Future Plans - The company completed capital expenditures of 15.76 billion CNY in 2023 and plans to invest 16.01 billion CNY in 2024, focusing on coal and new energy projects [7]. - New projects in coal mining and power generation are expected to enhance production capacity and operational efficiency [7].