Investment Rating - The investment rating for Shanxi Coking Coal is "Buy" with a target price not specified [6][4]. Core Views - The company's performance has been under pressure due to falling coal prices, with a significant decline in net profit for the first half of 2025 [1][2]. - The company has announced a cash dividend of RMB 0.36 per share, amounting to a total distribution of approximately RMB 204.38 million, which represents 20.16% of the net profit attributable to shareholders for the first half of 2025 [3]. - Future performance is expected to improve as coking coal prices rebound, supported by the company's commitment to shareholder returns through dividends [4]. Financial Performance Summary - For the first half of 2025, the company reported revenue of RMB 18.05 billion, a decrease of 16.3% year-on-year, and a net profit of RMB 1.01 billion, down 48.4% year-on-year [1]. - The coal business generated revenue of RMB 10.39 billion, down 13.5% year-on-year, with a gross profit margin of 47.6%, reflecting a decline of 6.7 percentage points [2]. - The electricity and heat business showed improvement, with a gross profit margin of 8.4%, up 7.7 percentage points year-on-year, despite a revenue decline of 5.2% [2]. - The coking business faced significant challenges, with a gross profit margin of -1.6%, down 2.2 percentage points year-on-year, primarily due to a 37.3% drop in coking coal prices [2]. Earnings Forecast and Valuation - The earnings forecast for 2025-2027 has been adjusted downward due to falling coal prices, with expected net profits of RMB 1.86 billion, RMB 2.11 billion, and RMB 2.38 billion, representing year-on-year changes of -40.04%, +13.30%, and +12.65% respectively [4]. - The earnings per share (EPS) for the same period is projected to be RMB 0.33, RMB 0.37, and RMB 0.42, with corresponding price-to-earnings (P/E) ratios of 21.66, 19.12, and 16.97 [4][5].