Investment Rating - The investment rating for Shanxi Coking Coal is "Buy" [1] Core Views - The report emphasizes the company's focus on optimizing and strengthening its core business while improving quality and efficiency, indicating that performance improvements are expected [4][5] - The company has faced challenges such as declining sales and prices, leading to a decrease in gross profit margins in its coal business [4] - Despite the challenges, the company is positioned to benefit from its rich coking coal resources and low-cost mining operations, which may provide resilience in pricing [4][5] Financial Performance Summary - In 2024, the company reported total revenue of 45.29 billion, a year-on-year decrease of 18.43%, and a net profit attributable to shareholders of 3.11 billion, down 54.10% [1] - The first quarter of 2025 showed a revenue of 9.03 billion, a year-on-year decrease of 14.46%, but a significant quarter-on-quarter increase of 159.8% in net profit [2] - The average selling price of coal in 2024 was 1,037 per ton, down 5.43% from 2023, while the average cost per ton increased by 9.55% to 495 [4] Future Outlook - The company is expected to see a gradual recovery in net profit, with projections of 2.76 billion, 3.27 billion, and 3.49 billion for 2025, 2026, and 2027 respectively [7] - The report anticipates that the company's earnings per share (EPS) will improve from 0.49 in 2025 to 0.62 in 2027, reflecting a positive growth trajectory [7] - The company is actively pursuing quality coal asset acquisitions, which are expected to contribute to future growth [5][7]

Investment Rating - The investment rating for Shanxi Coking Coal is "Buy" [1] Core Views - The company is expected to improve its performance through optimizing its main business and enhancing efficiency. The report highlights the company's efforts to strengthen its coal business and its recent acquisition of exploration rights for coal and associated bauxite resources, which will support sustainable development [4][5] - The company has faced challenges such as declining sales and prices, leading to a decrease in gross profit margin. However, it maintains a strong position in the market due to its high-quality coking coal resources [4][7] Financial Performance Summary - In 2024, the company reported total revenue of 45.29 billion, a year-on-year decrease of 18.43%, and a net profit attributable to shareholders of 3.11 billion, down 54.10% year-on-year. The operating cash flow was 9.06 billion, a decline of 33.84% [1][2] - For the first quarter of 2025, the company achieved revenue of 9.03 billion, a year-on-year decrease of 14.46%, while the net profit attributable to shareholders was 0.68 billion, down 28.33% year-on-year [2] - The average selling price of coal in 2024 was 1,037 per ton, a decrease of 5.43% compared to 2023, while the average cost per ton increased by 9.55% to 495 [4] Future Earnings Forecast - The company is projected to achieve net profits of 2.76 billion, 3.27 billion, and 3.49 billion for the years 2025, 2026, and 2027 respectively, with corresponding EPS of 0.49, 0.58, and 0.62 [7] - The report indicates that the company’s P/E ratios for 2025, 2026, and 2027 are expected to be 13.24, 11.16, and 10.45 respectively, reflecting a positive outlook for growth [7]