Investment Rating - The report maintains a "Recommended" rating for the company [8][11]. Core Views - The company's performance in Q1 2025 shows stable operations, with enhanced profitability in the coal business despite a decline in revenue and net profit [3][4][5]. - The acquisition of Hanjin Energy has been integrated into the company's financials, contributing to coal sales volume growth [4][6]. - The company is expected to continue benefiting from the injection of quality coal assets from the National Energy Group [6][11]. Financial Performance Summary - In Q1 2025, the company achieved operating revenue of 69.585 billion yuan, a year-on-year decrease of 21.1%, and a net profit attributable to shareholders of 11.949 billion yuan, down 18.0% year-on-year [3][4]. - The coal production volume was 82.5 million tons, a decrease of 1.1% year-on-year, while coal sales volume dropped by 15.3% to 99.3 million tons [5][10]. - The average selling price of coal was 506 yuan per ton, down 11.5% year-on-year, with a coal business gross margin of 30.1%, an increase of 1.2 percentage points [5][7]. Future Earnings Forecast - The company forecasts net profits attributable to shareholders of 55.102 billion yuan in 2025, with expected earnings per share (EPS) of 2.77 yuan [11][12]. - Revenue is projected to decline slightly in 2025, with a forecast of 330.7 billion yuan, followed by a recovery in subsequent years [12][14]. Operational Highlights - The company’s total power generation in Q1 2025 was 50.42 billion kWh, a decrease of 10.7% year-on-year, with a total installed capacity of 47,505 MW [7][10]. - The transportation business saw a decline in volume and profitability, with self-owned railway turnover down 11.6% year-on-year [10][11]. - The company is advancing the construction of new coal mines, which are expected to enhance future production capacity [6][11].

Investment Rating - The report maintains a "Recommended" rating for the company [4][7]. Core Views - The company reported stable performance in coal production and sales, with a slight decline in revenue and profit for 2024 and Q1 2025. The revenue for 2024 was CNY 15.033 billion, down 2.0% year-on-year, and the net profit attributable to shareholders was CNY 2.808 billion, down 14.9% year-on-year [1][2]. - The company plans to distribute a cash dividend of CNY 0.755 per share, resulting in a dividend payout ratio of 45%, which is an increase of 5 percentage points from 2023, yielding a dividend yield of 6.6% based on the stock price as of April 25, 2025 [2]. - The company is initiating the injection of mining rights assets from its controlling shareholder, which is expected to enhance production capacity significantly [4]. Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of CNY 3.799 billion, with a net profit of CNY 0.657 billion, showing a significant recovery compared to previous quarters [1]. - For Q1 2025, the company reported a revenue of CNY 2.424 billion, down 33.7% year-on-year, and a net profit of CNY 0.512 billion, down 34.4% year-on-year [1][3]. - The company’s coal production in 2024 was 34.6664 million tons, with a slight decrease in sales and prices, maintaining a gross margin of 49.78% [2][3]. Dividend Policy - The company has proposed a cash dividend of CNY 12.64 billion for 2024, with a payout ratio of 45% [2]. Future Outlook - The company forecasts net profits for 2025-2027 to be CNY 2.170 billion, CNY 2.348 billion, and CNY 2.471 billion respectively, with corresponding EPS of CNY 1.30, CNY 1.40, and CNY 1.48 [4][6]. - The company is expected to benefit from the asset injection, which will enhance its production capacity to 10 million tons per year [4].