SHCI(SH:601225) Great Wall Securities·2024-05-09 00:02Investment Rating - The report maintains a "Buy" rating for Shaanxi Coal Industry, expecting a price increase of over 15% relative to the industry index in the next six months [4][13]. Core Views - The coal business volume has increased, but prices have declined, leading to a significant drop in net profit for 2023. The company reported a net profit of 21.24 billion yuan, a decrease of 39.67% year-on-year [3][4]. - The company has a strong dividend policy, with a proposed cash dividend of 1.315 yuan per share, resulting in a dividend yield of 5.21% [8]. - The company is expected to maintain stable revenue growth, with projected revenues of 175.48 billion yuan, 181.88 billion yuan, and 188.80 billion yuan for 2024, 2025, and 2026, respectively [8]. Financial Performance Summary - 2023 Financials: - Revenue: 170.87 billion yuan, up 2.41% year-on-year - Net Profit: 21.24 billion yuan, down 39.67% year-on-year - Basic EPS: 2.19 yuan, down 39.67% year-on-year - ROE: 20.73%, down 12.57 percentage points year-on-year [3][4][8]. - 2024 Projections: - Expected Revenue: 175.48 billion yuan - Expected Net Profit: 21.45 billion yuan - Expected EPS: 2.21 yuan [8]. Operational Insights - Production and Sales: - In 2023, the company produced 164 million tons of coal, an increase of 4.10% year-on-year, and sold 253 million tons, an increase of 12.60% year-on-year [3]. - The average selling price of coal in 2023 was 596.10 yuan per ton, a decrease of 13.04% year-on-year [3]. - Cost Structure: - The average operating cost for coal was 405.00 yuan per ton, an increase of 1.68% year-on-year [3]. - The gross profit margin for coal was 37.85%, down 7.06 percentage points year-on-year [3]. Capital Expenditure and Future Plans - The company plans to reduce capital expenditure in 2024 to 2.33 billion yuan, a decrease of 48.43% year-on-year [8]. - Key projects include investments in coal preparation plants and water-coal slurry projects, expected to enhance production capacity [8].