Core Viewpoint - During the "14th Five-Year Plan" period, Shanxi Province is investing approximately 5 billion yuan in R&D, establishing over 80 provincial-level energy technology innovation platforms to support energy transition in the region [1] Group 1: Coal Mining Innovations - Shanxi focuses on safe and efficient coal mining, with self-developed equipment like the "Coal Sea Dragon" tunneling machine and large-scale open-pit intelligent electric shovels leading the industry [1] - The province has promoted green mining technologies such as filling mining and water-preserving mining, enhancing the strength of key technologies and equipment in the supply chain [1] - Advanced coal mining capacity in Shanxi has reached 83%, overcoming key technologies related to deep coal seam gas, thin coal seam gas, and co-extraction of coal and gas [1] Group 2: Clean Coal Conversion Technologies - Shanxi's clean and efficient coal conversion technologies, including coal-to-oil and low-carbon olefin synthesis, are internationally leading [1] - Lu'an Chemical's coal-to-oil production has surpassed 1 million tons, filling domestic gaps in a series of coal-based synthetic products [1] - The "Jinhua Furnace" has addressed the challenges of high-temperature gasification, achieving a market share of over 50% for similar products nationwide [1] Group 3: Renewable Energy and Technology Progress - Shanxi has made positive advancements in areas such as green electricity parks, smart grids, deep geothermal energy, and biomass energy [1]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 21.22 CNY, reflecting a 30% premium over the average PE of comparable companies [4][9]. Core Views - The company has shown steady revenue growth, with a projected increase in operating income from 29.14 billion CNY in 2023 to 56.52 billion CNY in 2027, representing a compound annual growth rate (CAGR) of 18.3% [6][9]. - The net profit attributable to the parent company is expected to rise significantly, from 5.65 billion CNY in 2023 to 13.58 billion CNY in 2027, indicating a robust growth trajectory [6][9]. - The Inner Mongolia project is entering a ramp-up phase, with significant production capacity expected to enhance the company's earnings in 2025 [9][10]. - The company is also exploring new opportunities in Xinjiang, which could provide additional growth potential due to lower coal prices compared to other regions [9][10]. Financial Summary - Revenue is projected to grow from 29.14 billion CNY in 2023 to 44.33 billion CNY in 2025, with a year-on-year growth rate of 34.4% [6]. - Operating profit is expected to increase from 6.79 billion CNY in 2023 to 12.04 billion CNY in 2025, reflecting a growth rate of 53.8% [6]. - The company's gross margin is anticipated to improve from 30.4% in 2023 to 36.3% in 2025, driven by cost optimization from declining coal prices [6][9]. - The net profit margin is projected to rise from 19.4% in 2023 to 22.6% in 2025, indicating improved profitability [6][9]. - The earnings per share (EPS) are forecasted to increase from 0.77 CNY in 2023 to 1.36 CNY in 2025 [6][9].