Depth-Company-Shaanxi Coal Industry Co., Ltd. (601225): Single-quarter performance innovation in recent years, high performance continued to improve

Depth * Company * Shaanxi Coal Industry Co., Ltd. (601225): Innovative single-quarter performance and high performance in recent years continue to improve

In the first three quarters of 19, the net profit attributable to mothers was 91 trillion, an annual increase of 2.

5%, excellent performance.

Net profit in the third quarter increased by 4% month-on-month to 3.2 billion, the highest in a single quarter since 2014.

Cash is plentiful and the balance sheet continues to improve.

Due to the large increase in trade coal, changes in sales structure, coal price, cost, and profitability per ton of coal are slightly worse, but the overall performance is good.

The company has good growth and excellent profitability, which is underestimated as the high-quality target of the sector.

The current P / E ratio is only 7.

4 times, 25% lower than the industry average. Maintain BUY rating.

Key points of the official rating The first three quarters of 2019 net profit attributable to mothers was US $ 9.1 billion, an increase of 2 per year.

5%, excellent performance.

Among them, the third quarter was 32 trillion, an increase of 4% month-on-month, the highest single-quarter performance since 2014.

The main business income was US $ 50.8 billion, an annual increase of 23%, mainly due to a 21% increase in sales volume.

2.3 billion tons and coal prices increased slightly by 3% to 396 yuan / ton.

Gross profit was 2.22 million yuan, an annual increase of 2.


The cost control during the period was better, from 12% in the same period last year to 11% this year.

Operating profit fell by 1.

2% to 1.52 million yuan.

Due to the increase in margins of low-purchased coal, the profit margin decreased. The gross profit margin decreased from 52% to 44%, the operating profit margin decreased from 37% to 30%, and the net profit margin decreased from 22% to 18%.
Operating cash flow increased by 21% annually to 156 trillion, and the return on net assets increased from 18.

5% dropped to 16.

5%, the asset-liability ratio dropped from 44% in the same period last year to only 39%, a record low.

Rich cash and excellent financial performance.

Both volume and price rose, and the increase in sales of trade coal brought about changes in the sales structure leading to price, cost, and comparability of profit per ton of coal.

In the first three quarters, coal output increased by 8352, an annual increase of 4%.

Since the large-scale production suspension caused by the mining disaster in the Shenmu area in the early days, the company has actively organized trade coal supplements (no specific amount was disclosed), and coal sales in the first three quarters increased by 21% to 1.

2.3 billion tons.

The price per ton of coal, including trade coal, increased by 3% to 396 yuan per quarter, and the cost per ton of coal increased by 22% to 223 yuan.

Gross profit per ton of coal dropped by 15% to 173 yuan / ton.

As the increase in trade coal has brought about changes in the sales structure, the continuous reference of coal prices and costs in this period and the profit per ton of coal is slightly worse.

In the next three years, the output can increase by 22%, and the output of equity will increase by more than 30%, and it will continue to maintain better growth.

With the Xiaobaodang and Yuandatan mines in full production, the 1,300-second Xiaobaodang second phase under construction, as well as the Sunjia cross, Hongliulin, and Dafosi nuclear production increased by 1,200 tons. By 2021, the company’s coal output is expected to reach 1.

3.2 billion tons, an increase of 22% (or 2,400 interest rates) over 18 years, and equity expenditure is 深圳spa会所 expected to grow at 7,903, an increase of 31%.

The average annual output growth is about 7%, and continued to maintain rapid output growth.

The fundamental advantages are obvious: the company has excellent high-calorie and low-sulfur coal quality, strong profitability (multiple indicators hit the forefront of the industry), excellent cost control, good growth, and huge capacity release potential and potential.
Due to downward pressure on the future economy and pressure on market coal prices, we have lowered our earnings in 2020 and 2021.

5%, 9.
7% to 1.
21 yuan, 1.

25 yuan (the original forecast was: 1.

29 yuan, 1.

38 yuan).

It is estimated that the company has good growth, excellent profitability, underestimated, and is the high-quality target of the sector.

Currently the company’s price-earnings 苏州桑拿网 ratio is only 7.

4 times, 25% lower than the industry average. We maintain our BUY rating.

The main risks facing the rating are that the downward pressure on the economy is increasing, coal prices are falling, and cost accruals exceed expectations, and good performance cannot be sustained.