Core Viewpoint - Guohai Securities research report indicates that Huaibei Mining is undervalued as a leading coal and coke company in East China, with a turning point in profitability expected in 2026 [1] Company Overview - The company primarily engages in coal and coal chemical industries, with coal gross profit accounting for 60% and coal chemicals 26% of total revenue in the first half of 2025, while other businesses, including mining, explosives, and power, contribute 10% [1] Financial Performance - In the first three quarters of 2025, the company achieved a net profit attributable to shareholders of 1.1 billion yuan, a year-on-year decrease of 74%, primarily due to declines in both volume and price of coking coal and a drop in coal chemical product prices [1] - The company’s projected net profits for 2025-2027 are 1.495 billion, 3 billion, and 4.11 billion yuan respectively, reflecting a year-on-year change of -69%, +101%, and +37% [1] - The current price-to-earnings (PE) ratios are 23.3, 11.6, and 8.5 times for the years 2025, 2026, and 2027 respectively [1] Investment Value - The company demonstrates growth potential in coal, electricity, and non-coal mining sectors, with the industry’s coking coal prices expected to rise due to market and policy support [1] - The integrated operation of coal and coke is stable, highlighting the company's investment value, leading to a maintained "buy" rating [1]