hbky(SH:600985) Xinda Securities·2024-03-27 16:00Investment Rating - The investment rating for Huabei Mining (600985) is "Buy" [1]. Core Views - The report highlights that the upcoming redemption of convertible bonds is expected to alleviate valuation pressure on the company's stock, potentially leading to a rebound in stock price [3]. - The company is focusing on a strong chain extension strategy, which is anticipated to drive long-term performance growth [2]. - Despite a decline in net profit for 2023, the company has maintained a stable cash dividend per share, reflecting its commitment to shareholder returns [3]. Financial Performance Summary - In 2023, Huabei Mining achieved operating revenue of 733.87 billion, a year-on-year increase of 6.26%, while net profit attributable to shareholders was 62.25 billion, a decrease of 11.21% [1]. - The company's cash flow from operating activities was 130.31 billion, down 21.83% year-on-year [1]. - The average selling price of coal remained stable at 1160 yuan per ton in 2023, with a gross margin of approximately 50% [1]. - The company reported a total coal production of 21.97 million tons in 2023, a decrease of 4.06% year-on-year [1]. - The report projects net profits for 2024-2026 to be 72.63 billion, 81.87 billion, and 97.09 billion respectively, with corresponding EPS of 2.74, 3.09, and 3.66 yuan per share [4]. Strategic Developments - The company is advancing its strong chain extension strategy, with ongoing projects in coal, electricity, and chemical industries, which are expected to enhance long-term performance [2]. - The construction of the Tao Hutu mine is accelerating, and the company is increasing its coal production capacity [2]. - The report notes that the company is also focusing on non-coal resources, with a total of 307 million tons of resources being secured throughout the year [2].