SLSVC(SH:600123) Guotai Junan Securities·2024-04-23 05:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 14.54 CNY, up from the previous forecast of 11.48 CNY [14][15]. Core Insights - The company's profits are being dragged down by price and cost pressures, but profitability in the chemical sector is recovering [14]. - The company reported a revenue of 13.28 billion CNY for 2023, a decrease of 6.16% year-on-year, and a net profit attributable to shareholders of 2.10 billion CNY, down 34.93% [14][15]. - The coal production for the first quarter of 2024 is projected at 13.80 million tons, an increase of 20.46%, with sales expected to reach 12.41 million tons, up 11.65% [14]. - The average selling price of coal is reported at 739 CNY per ton, down 205 CNY per ton, while the cost per ton is approximately 288 CNY, a decrease of 16 CNY per ton [14]. Summary by Sections Financial Performance - Revenue for 2023 was 13.28 billion CNY, a decline of 6.16% from the previous year [14]. - The net profit attributable to shareholders was 2.10 billion CNY, reflecting a significant drop of 34.93% [14]. - The company has adjusted its EPS forecasts for 2024 and 2025 to 1.31 CNY and 1.43 CNY respectively, with a new EPS for 2026 projected at 1.52 CNY [14]. Production and Sales - The company produced 13.80 million tons of coal in Q1 2024, marking a 20.46% increase, while sales reached 12.41 million tons, up 11.65% [14]. - The average selling price of coal decreased to 739 CNY per ton, with a cost of 288 CNY per ton [14]. Market Position - The report indicates that the company is positioned to gradually increase prices for its main product, anthracite coal, as production capacity continues to rise [14]. - The chemical sector's profitability is on the rise, with key projects progressing to support the company's industrial upgrade [14].