Minsheng Securities·2024-04-28 03:02Investment Rating - The report maintains a "Recommended" rating for China Shenhua (601088.SH) [1][3]. Core Views - The company's Q1 2024 performance shows stable revenue growth, with operating income reaching 87.647 billion yuan, a year-on-year increase of 0.7%. However, net profit attributable to shareholders decreased by 14.7% to 15.884 billion yuan [1]. - Non-recurring losses increased due to donation expenses, which amounted to 576 million yuan, negatively impacting profitability [1]. - Coal production and sales saw a year-on-year increase, but the average selling price declined, leading to a drop in gross margin [1]. - The power generation segment expanded, with total power generation reaching 55.35 billion kWh, a 7.0% increase year-on-year, and gross margin improved [1]. - The transportation segment's profitability improved, with railway turnover increasing by 10.1% year-on-year [1]. Summary by Sections Financial Performance - Q1 2024 operating income was 87.647 billion yuan, with a net profit of 15.884 billion yuan, down 14.7% year-on-year. Non-recurring losses were 576 million yuan, primarily due to donation expenses [1]. - Coal production reached 81.3 million tons, up 1.5% year-on-year, while sales increased by 8.8% to 117.1 million tons [1]. - The average selling price of coal was 573 yuan/ton, a decrease of 7.7% year-on-year, with a gross margin of 28.9%, down 4.8 percentage points [1]. Power Generation - Total power generation was 55.35 billion kWh, with a gross margin of 16.9%, an increase of 0.8 percentage points year-on-year [1]. - The company plans capital expenditures of 17.178 billion yuan for power generation in 2024, a 7.9% increase from 2023 [1]. Transportation - Railway turnover was 82.0 billion ton-km, up 10.1% year-on-year, while shipping volumes at Huanghua Port increased by 11.5% [1]. - The transportation segment's profitability improved, with railway gross margin at 38.1%, up 2.1 percentage points year-on-year [3].