SLSVC(SH:600123) Guohai Securities·2024-04-23 23:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][21]. Core Views - The company's revenue for 2023 was 13.28 billion yuan, a decrease of 6.2% year-on-year, with a net profit attributable to shareholders of 2.1 billion yuan, down 34.9% year-on-year [1][30]. - The decline in performance is primarily attributed to falling coal prices, increased costs from external coal supply and initial production of integrated mines, and impairment provisions affecting profits by 100 million yuan [3][30]. - The first quarter of 2024 saw a further decline in profits due to a drop in coal prices compared to Q4 2023 and a decrease in sales volume [3][30]. Financial Performance Summary - In Q4 2023, the company achieved a revenue of 3.68 billion yuan, an increase of 17.4% quarter-on-quarter and 35.7% year-on-year, with a net profit of 300 million yuan, down 31.5% quarter-on-quarter and 35.7% year-on-year [13]. - For Q1 2024, the company reported a revenue of 2.26 billion yuan, a decrease of 38.5% quarter-on-quarter and 25% year-on-year, with a net profit of 130 million yuan, down 54.9% quarter-on-quarter and 82.6% year-on-year [14][30]. - The coal production for 2023 was 13.8 million tons, an increase of 20.46% year-on-year, while the average selling price of coal was 739 yuan/ton, down 21.8% year-on-year [14][30]. Production and Cost Analysis - The company’s coal production in Q4 2023 was 3.8 million tons, with an average selling price of 715 yuan/ton, leading to a gross profit margin of 47.3% [3][14]. - In Q1 2024, coal production was 3.12 million tons, with an average selling price of 631 yuan/ton, resulting in a gross profit margin of 42.1% [16][30]. - The company is actively working on integrating new mines and enhancing production capacity, with several mines expected to commence operations in the near future [5][30]. Chemical Business Performance - The company’s chemical segment saw a decline in production, with methanol production down 52.91% year-on-year and caprolactam production down 19.2% year-on-year [6][17]. - The average selling price for urea in 2023 was 2,250 yuan/ton, down 8.7% year-on-year, while the gross profit margin improved to 16.85% [17][29]. - The company plans to upgrade its chemical production facilities to enhance profitability in the future [29][30]. Dividend Policy - The company declared a dividend of 0.75 yuan per share for the first three quarters of 2023, resulting in a total dividend payout of 1.11 billion yuan, representing a dividend rate of 53.1% of the net profit attributable to shareholders [18][30].