JZEG(000937) Minsheng Securities·2024-04-27 08:00Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [2][6]. Core Views - The company's net profit attributable to shareholders decreased by 73.83% year-on-year to 708 million yuan in Q1 2024, with operating revenue down 32.71% to 5.333 billion yuan, primarily due to falling coal prices [1][2]. - The company aims to increase coal production to 50 million tons within three to five years, representing a growth of 82.42% from the 27.41 million tons produced in 2023 [1]. - The non-coal business is expected to grow significantly, with the new glass fiber production line projected to start operations in 2024, increasing total capacity to 400,000 tons [1]. - The company has successfully optimized its asset structure by selling off inefficient assets, which has improved its financial condition and laid a solid foundation for future growth [1]. Financial Forecasts - The forecasted net profits for 2024, 2025, and 2026 are 3.044 billion yuan, 3.287 billion yuan, and 3.593 billion yuan, respectively, with corresponding EPS of 0.86 yuan, 0.93 yuan, and 1.02 yuan per share [2][6]. - The price-to-earnings (PE) ratios for the same years are projected to be 9, 8, and 8 times, respectively, based on the closing price on April 26, 2024 [2][6].