Xishan Coal and Electricity (000983): First-quarter results are expected to continue to improve

Xishan Coal and Electricity (000983): First-quarter results are expected to continue to improve
Event: On April 22, 2019, the company released its 2018 annual report and 2019 first quarter report. In 2018, it realized net profit attributable to shareholders of listed companies.02 ppm, an increase of 14 in ten years.87%.In the first 上海夜网论坛 quarter of 2019, the net profit attributable to owners of the parent company was 5.0.94 million yuan, an increase of 15 over the same period last year.79% commented that net profit in the fourth quarter2.800 million US dollars, expected results in line with expectations: According to annual reports, the company achieved net profit attributable to its mother in the fourth quarter2.80,000 yuan, an increase of 43 in ten years.03%, down 31.32%.The main reason for the obvious decline in performance from the previous quarter is 1) the three fees increased by 4.07 ppm or 28.01%; 2) Accrued asset impairment losses 1.4.7 billion. The volume and price of coal business rose: coal production and sales boomed. In 2018, the output of raw coal reached 2745, with a long-term growth of 9.88%, of which 1170 are cleaned coal, an increase of 6 per year.36%, it is estimated that the washed out coal contains 42.62% for years before 2017.41 units.The company sold commercial coal at an early stage of 2561, an annual increase of 7.38%.The company’s comprehensive coal bid increased by 1.73% to 674.68 yuan / ton, 299 tons of coal sales cost.51 yuan / ton, up 6 before.6%.Due to the higher cost growth rate, the gross profit margin of the coal business decreased in 20182.02 single to 55.61%. The profitability of coking business remained stable, and the power business was still a drag on performance: due to rising coal prices, the profitability of the power business and coke business was replaced.The company’s coke production and sales remained basically stable at 438/448 respectively, and the coke business gross margin was 5.79%, average 0.09 averages.In terms of power business, the company’s cumulative supply in 2018 was 14.3 billion kWh, an increase of 22 per year.2%.However, due to rising coal prices, the gross profit margin of the power business was -3.18%, still in a potential state. First-quarter results exceeded expectations: The company achieved operating income of 85 in the first quarter.10,000 yuan, an increase of 16 over the same period last year.59%; net profit attributable to owner of parent company is 5.0.94 million yuan, an increase of 15 over the same period last year.79%, exceeding market expectations.The primary measure for improving the company’s performance is the rise in coking coal prices. According to wind data, the average price of main coking coal in Jingtang Port in the first quarter was 1,867 yuan / ton, which increased by 6 as a result.75%.Due to the high percentage of the company’s long-term coal, the company’s performance elasticity is limited to a certain extent, but the reduction in decline is good for the company’s performance release.Absolute’s previous large-scale new capacity was put into production, and it is expected that production and sales will remain stable.Due to the scarcity of coking coal itself and the tightening of imports, the price of coking coal has helped keep it high, and the company’s performance has continued to improve. Accelerator for national reform in Shanxi: According to the Shanxi Daily report, the strategy of April 15 strives to achieve an overall listing and two “zero breakthroughs” in the listing of new shares. Existing listed companies should strengthen market value management and gradually increase the asset securitization rate. “As the only coal listed company of the Coking Coal Group, the company is expected to benefit from Shanxi’s national reform. Investment suggestion: It is estimated that the company’s net profit attributable to the parent in 2019-2021 will be 22.99/24.31/24.9.9 billion yuan, equivalent to 0 respectively.73/0.77/0.79.Considering the overall rebound of the coal sector, the company is generally estimated to be at a low level, giving a “Buy-A” rating with a 6-month target price of 8.76 yuan. Risk reminder: coal prices drop sharply, and state-owned enterprise reform progress exceeds expectations