Investment Rating - The report maintains a "Buy" rating for Shanxi Coking Coal [5] Core Views - The company is expected to see a marginal recovery in performance in Q4 2025, with October prices for coking coal showing an increase compared to September [1] - The company possesses significant coal resources, with a total coal reserve of 6.53 billion tons and additional resources acquired recently [2] - Financial projections indicate a decline in net profit for 2025, but a gradual recovery is anticipated in subsequent years [2][4] Summary by Sections Financial Performance - In Q3 2025, the company reported revenue of 9.122 billion yuan, a year-on-year decrease of 20.84%, and a net profit of 420 million yuan, down 52.24% year-on-year [1] - Revenue projections for 2025 to 2027 are 41.473 billion yuan, 42.067 billion yuan, and 42.849 billion yuan respectively, with corresponding net profits of 2 billion yuan, 2.512 billion yuan, and 2.843 billion yuan [4] Resource Advantages - As of the end of 2024, the company operates 17 mines, with 16 currently producing and one under construction, totaling coal reserves of 6.53 billion tons [2] - Recently acquired exploration rights in Shanxi Province add 0.953 billion tons of coal reserves and additional aluminum and gallium resources [2] Market Conditions - Coking coal prices have shown an upward trend, with long-term contract prices for Shanxi coking coal reaching 1,470 yuan per ton in October, up from 1,400 yuan in September [1] - Supply disruptions in the coal market are noted, particularly due to environmental regulations affecting production in certain regions [1]

Investment Rating - The investment rating for the company is "Buy" [3] Core Views - The company has a significant coal resource endowment, with a total coal resource reserve of 6.53 billion tons as of the end of 2024. It has 17 mines, including 16 operational and 1 under construction [2] - The company plans to distribute a cash dividend of RMB 0.36 per share (before tax), totaling RMB 204 million, as part of its profit distribution plan for the first half of 2025 [2] - The projected net profits for the company from 2025 to 2027 are estimated to be RMB 2 billion, RMB 2.5 billion, and RMB 2.8 billion, respectively, with corresponding P/E ratios of 20.2X, 16.2X, and 14.4X [2] Financial Performance Summary - For the first half of 2025, the company reported operating revenue of RMB 18.053 billion, a decrease of 16.3% year-on-year, and a net profit attributable to shareholders of RMB 1.014 billion, down 48.44% year-on-year [1] - The coal business generated revenue of RMB 10.39 billion in the first half of 2025, a decline of 13.48% year-on-year, while the electricity business saw a revenue of RMB 3.15 billion, down 5.24% year-on-year, but with a gross margin increase of 7.66% [1] - The company's total market capitalization is approximately RMB 40.82 billion, with a total share capital of 5.677 billion shares, of which 81.74% are freely tradable [3]