Affected by the decline in resource conditions and demand, coal production and sales declined compared with the same period last year. 2015 Company's raw coal output was 5.5765 million tons, down 16.19% from the same period last year; commercial coal production and sales volume were 501.29 and 5.0065 million tons respectively, down 29.05% and 27.96% respectively from the same period last year. In 2015, the company's coal trade volume was 5.927 million tons, down 27.40% from the same period last year. The decline in coal production and sales is mainly restricted by resource conditions and weak downstream demand. In the fourth quarter, the company produced 1.41 million tons of raw coal and sold 1.26 million tons of commercial coal. In 2016, the company plans to produce 4.75 million tons of raw coal and 3.87 million tons of commercial coal.
The gross profit margin of self-produced coal fell, while the gross profit margin of trade coal per ton increased. In 2015, the average price of commercial coal in the company was 392.25 yuan per ton, down 75.81 yuan per ton from the same period last year, or 16.20 percent. The cost of self-produced coal per ton of coal was 332.61 yuan, down 47.37 yuan, or 12.47 percent, and the gross profit margin of the self-produced coal business fell 3.62 percent to 15.20 percent. In the past 15 years, the price of the company's trade coal was 416.16 yuan / ton, and the gross profit was 10.13 yuan / ton, an increase of 2.02 yuan / ton over the same period last year.
During the period, the cost was well controlled, and the management cost decreased greatly. The company's expenses during 2015 totaled 511 million yuan, down 19.44% from the same period last year, of which sales expenses, management expenses and financial expenses decreased by 2.32%, 32.36% and 9.15% respectively compared with the same period last year.
After deducting non-profit in the fourth quarter, the performance turned into a loss compared with the previous quarter. The company's gross profit margin rose 6.84 percent in the fourth quarter from the previous quarter, which should be due to the ability to reduce capital, but due to the provision of asset impairment loss of 56 million yuan (mainly inventory and bad debts), the company realized an attributable net profit of 8 million yuan in a single quarter. it decreased by 124 million yuan compared with the previous quarter, and the attributable net profit lost 41 million yuan after deducting non-profit in the fourth quarter.
The growth potential of the traditional main business is limited, and the focus is still in transition and supply-side reform. The growth potential of the company's coal production capacity is limited, and the progress of Internet finance and national reform is worth looking forward to. We forecast that the company's EPS in 16-18 will be 0.03,0.04,0.05 yuan respectively, maintaining a "buy" rating. Risk hint: macroeconomic decline sharply, supply-side reform is lower than expected