Datong Coal Industry (601001): Profitability significantly improved

Datong Coal Industry (601001): Profitability significantly improved

In 2018, the Group completed the acquisition of a 21% stake in Tashan Mine, which significantly improved the profitability of the company in 2018.

60,000 yuan, an increase of 0 in ten years.

6 trillion or 10.

1%, equivalent to 0 EPS.

39 yuan.

The company’s main business gross profit in 2018 was 58.

10,000 yuan, an increase of 17 in ten years.

9%.

At the same time, due to reasonable cost control during the period, increase in investment income and decrease in profit and loss of minority shareholders, the company’s ROE exceeded 2018 by about 1.

2 up to 12.

0%.

By quarter, 2018Q1-4 achieved profit 1 respectively.

25, 3.

50, 1.

83 and 0.

02 budget, 18Q4 profit growth mainly due to: (1) period expenses increased by about 10,000 yuan compared to 18Q3 (of which management costs and financial costs increased by 0 respectively.

68 ppm and 0.

6.5 billion, while selling expenses fell 0 chain.

2.7 billion).

(2) 18Q4 accrued asset impairment losses1.

300 million.

The company achieved net profit attributable to mother 2 in Q1 2019.

4 ppm, an increase of ten years.

1 ppm or 89.

1%.

In 19Q1, the gross profit of the main business decreased by 3 trillion per year, and the cost decreased by 2 during the period.

8 ppm, each decrease in net profit is 0.

The annual increase of the net profit attributable to the parent company was 400 million U.S. dollars, mainly due to the company’s acquisition of a 21% stake in Tashan Coal Mine held by the Group in the first half of 2018, which reduced the profit and loss of minority shareholders by approximately 1.

500 million.

The company plans to increase coal production and sales by 4 in 2019.

9% and 2.

8% According to the company’s annual report, the company’s raw coal production and commercial coal sales in 2018 were 3105.

5 initial (at least +28.

4%) and 2638.

7 initially (at least +28.

3%), the estimated revenue and cost per ton of coal are 405.

8 yuan (a year -5.

6%) and 186.1 yuan (a year -4.

6%), gross profit of 219 tons of coal.

7 yuan (six years-6.

4%).

The company plans 2019 coal production of 3257 attachments (+4.

9%), 2713 growth rate of commercial coal sales (+2.

8%).

The company’s 2019Q1 raw coal production and commercial coal sales were 743.

6 initially (at least +14.

8%) and 620.

4 digits (+14 per year.

7%), the estimated revenue and cost per ton of coal are 400.

1 yuan (one year -17.

2%) and 183.

9 yuan (one year +0.

5%), gross profit of 216 tons of coal.

2 yuan (-28% a year).

The company’s coal production capacity and output account for less than 20% of the group, which is expected to benefit from the reform of Shanxi state-owned enterprises. According to the company’s annual report, the company currently has three main productions, Xinzhou Kiln (capacity 230 tons / year, 100% equity), Tashan Mine (capacity 1500 Daily / 72% equity), Ceramite (capacity 500 kW / year, 51% equity), with a total capacity of 2230 per year / year.

Among them, Tashan Mine and Serenite Mine produced 2547 wavelengths and 458 millimeters in 2018, with a net profit of 23.

0 ppm and -2.

60,000 yuan, Tashan Mine’s net profit per ton of coal is about 90 yuan.

According to the latest bond offering prospectus of Tongmei Group, Tongmei Group currently has a total capacity of about 1.

60,000 yuan, 2017 raw coal production1.

At 2.7 billion tons, the listed companies Datong Coal Industry accounted for 14% and 19%, respectively. The company helps to benefit from the reform of Shanxi’s state-owned enterprises and the asset securitization rate of Tongtong Group.

Profit forecast and investment rating company completed the acquisition of 21% equity of Tashan Coal Mine held by Tongmei Group in 2018, and Tashan Mine has outstanding profitability.

Serenite started to contribute grains after it was put into production in 2018, but the current profit is still relatively weak, which may be related to the initial costs and high depreciation.

According 杭州夜网 to the annual report, in 2019 the Serian Coal Mine should complete key tasks such as mine acceptance, coal preparation plant technological transformation, safe production of first-class standardized mines, and nuclear production capacity increase. There is still room for nuclear production capacity increase in the Serine Coal Mine, and it is expected that it will gradually reduce the loss contributionProfit increase.

In addition, the company benefited from the Shanxi National Reform.

The company’s EPS is expected to be 0 in 2019-2021.

50, 0.

51 and 0.

53 yuan, corresponding to a dynamic PE of 9.

9 times, 9.

7 times and 9.

4 times.

The company’s current PE (TTM) is 10.

Seven times, the company’s average PE (TTM) since 2017 is 14.

1 time, we give the company PE an estimated 11 times, corresponding to a 南京夜网论坛 reasonable value of 5.

5 yuan / share, maintain “Hold” rating.

Risks indicate that the macroeconomic growth rate is higher than expected, downstream demand is higher than expected, coal prices are lower than expected, and the company’s costs are increasing too quickly;

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