Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential revaluation opportunity as the narrative shifts from "elasticity" to "duration" [5][9]. Core Views - The report highlights that the coal industry is transitioning from an "elasticity narrative" to a "duration narrative," with the company expected to narrow its valuation gap with China Shenhua as market recognition of low-cost coal companies' longer duration increases [8][41]. - The company is positioned well in terms of resource endowment, sharing a coalfield with China Shenhua and maintaining a low-cost advantage due to its relatively new coal mines [40][41]. - The report emphasizes that the company's valuation is expected to improve as the market acknowledges the stability of its earnings and the long-term investment value of low-cost coal producers [11][41]. Summary by Sections Market Performance - The closing price of the company is 20.20 yuan, with a total market capitalization of 195,839 million yuan and a circulating market capitalization of 195,839 million yuan [3]. Financial Forecast and Valuation - The projected revenues for 2023 to 2027 are as follows: 170,872 million yuan (2023), 184,145 million yuan (2024), 165,638 million yuan (2025), 171,775 million yuan (2026), and 179,158 million yuan (2027) [7]. - The expected net profit attributable to the parent company for the same period is: 21,239 million yuan (2023), 22,360 million yuan (2024), 19,016 million yuan (2025), 19,927 million yuan (2026), and 21,001 million yuan (2027) [7]. - The report anticipates a PE ratio of 10.3 for 2025, 9.8 for 2026, and 9.3 for 2027, indicating a favorable valuation compared to peers [9][42]. Investment Logic - The report discusses the shift in the coal industry narrative, emphasizing that companies with lower extraction costs will have a longer duration and thus a higher valuation as the market recognizes their stability [37][41]. - The company is expected to benefit from its low-cost structure and stable earnings, which will help it narrow the valuation gap with China Shenhua [40][41]. Key Assumptions - The company’s self-produced coal sales growth rates are projected at +4.9% for 2025, 0% for 2026, and 0% for 2027 [10][42]. - The self-produced raw coal prices are expected to decline by 12.7% in 2025, followed by increases of 2.3% in 2026 and 2.2% in 2027 [10][42].