Investment Rating - The report maintains a "Buy" rating for Shanxi Coking Coal [5] Core Views - The company is expected to see a marginal recovery in performance in Q4 2025, with October prices for coking coal showing an increase compared to September [1] - The company possesses significant coal resources, with a total coal reserve of 6.53 billion tons and additional resources acquired recently [2] - Financial projections indicate a decline in net profit for 2025, but a gradual recovery is anticipated in subsequent years [2][4] Summary by Sections Financial Performance - In Q3 2025, the company reported revenue of 9.122 billion yuan, a year-on-year decrease of 20.84%, and a net profit of 420 million yuan, down 52.24% year-on-year [1] - Revenue projections for 2025 to 2027 are 41.473 billion yuan, 42.067 billion yuan, and 42.849 billion yuan respectively, with corresponding net profits of 2 billion yuan, 2.512 billion yuan, and 2.843 billion yuan [4] Resource Advantages - As of the end of 2024, the company operates 17 mines, with 16 currently producing and one under construction, totaling coal reserves of 6.53 billion tons [2] - Recently acquired exploration rights in Shanxi Province add 0.953 billion tons of coal reserves and additional aluminum and gallium resources [2] Market Conditions - Coking coal prices have shown an upward trend, with long-term contract prices for Shanxi coking coal reaching 1,470 yuan per ton in October, up from 1,400 yuan in September [1] - Supply disruptions in the coal market are noted, particularly due to environmental regulations affecting production in certain regions [1]