Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [20]. Core Views - The company's performance is under pressure due to declining coal prices, with a significant year-on-year revenue drop of 44.6% in H1 2025 and a net profit decrease of 64.9% [2][4]. - Despite the challenges, there was a quarter-on-quarter improvement in production and sales volumes in Q2 2025, with coal production increasing by 6.8% and sales volume rising by 17.9% compared to the previous quarter [4][3]. - The company is expected to benefit from its coal type and geographical advantages, leading to industry-leading coal prices, alongside potential capacity increases from new mining projects [6][4]. Summary by Sections Financial Performance - In H1 2025, the company reported revenues of 20.61 billion yuan, with a net profit of 1.03 billion yuan, resulting in a net profit margin of 5.0% [2]. - The coal business generated revenues of 5.4 billion yuan in H1 2025, down 41.2% year-on-year, with a gross profit of 2.4 billion yuan, reflecting a 49.1% decline [4]. - The average selling price of coal in H1 2025 was 835 yuan per ton, a decrease of 27.0% year-on-year [4]. Production and Sales - The total coal production for H1 2025 was 8.91 million tons, down 13.7% year-on-year, while sales volume was 6.48 million tons, down 19.4% [4]. - In Q2 2025, coal production was 4.6 million tons, with sales volume reaching 3.5 million tons, marking a quarter-on-quarter increase [4][3]. Future Outlook - The report forecasts net profits for 2025-2027 to be 2.68 billion, 3.25 billion, and 3.54 billion yuan respectively, with corresponding EPS of 1.00, 1.21, and 1.32 yuan per share [6]. - The company is expected to see growth from its coal chemical products, with significant increases in ethanol production volumes [5].

Core Viewpoint - The company reported a significant increase in total revenue and net profit for 2024, indicating strong operational performance despite challenges in product pricing and market conditions [2][3]. Group 1: Financial Performance - In 2024, the company achieved total revenue of 34.2 billion yuan, a year-on-year increase of 25.6%, and a net profit attributable to shareholders of 3.9 billion yuan, up 9.1% year-on-year [2]. - In Q4 2024, the company recorded total revenue of 9.05 billion yuan, a year-on-year increase of 14.3% and a quarter-on-quarter increase of 10.3%. The net profit for the quarter was 850 million yuan, reflecting a year-on-year increase of 31.6% and a quarter-on-quarter increase of 3.5% [2]. Group 2: Market Conditions - The price differentials for key products such as urea, acetic acid, and DMF have declined significantly in Q4 2024, with urea price differential at 900 yuan/ton, down 575 yuan/ton year-on-year [3]. - The average market price of domestic thermal coal (Q5500) in Q4 2024 was 826 yuan/ton, representing a 14% decrease year-on-year and a 3% decrease quarter-on-quarter [3]. Group 3: Project Developments - The company’s Jingzhou project has contributed to revenue growth, compensating for price declines through increased volume [3]. - The company announced the commissioning of gas power platform and syngas comprehensive utilization projects, which are expected to produce 1 million tons of urea and 100,000 tons of acetic acid annually, enhancing core competitiveness [5]. - Ongoing projects, including the second phase of the Jingzhou base and new material projects, are expected to further increase production capacity and profitability [5][6].