The performance was in line with expectations: the operating income in the first half of the year was 2.05 billion yuan, up 25.4% from the same period last year, and the net profit attributed to the owner of the parent company was 110 million yuan, up 118.6% from the same period last year, and basic earnings per share was 0.3292 yuan. Of this total, the operating income in the second quarter was 950 million yuan, up 33.3% from the same period last year. The net profit attributed to the owner of the parent company was 30.18 million yuan, up 228.0% from the same period last year, and the basic earnings per share was 0.0886 yuan. The performance was in line with our previous expectations.
Coal prices decline to improve performance: the main reason for the increase in operating income is that Dandong Jinshan Thermal Power 2* 300000 kilowatt units were put into operation, resulting in an increase in electricity and heating sales revenue compared with the same period last year, benefiting from the decline in coal prices. the company's gross profit margin of electricity sales increased by 8.5% year-on-year.
The profit difference of the subsidiary is obvious: (1) Baiyinhua Power Generation: benefiting from the decline in coal prices and the increase in electricity (more units are overhauled in the same period last year), the contribution performance increased by nearly 50 million yuan, or 336%, compared with the same period last year. (2) Investment income: although the investment income of the company is basically flat, there is a significant difference in the profits of the participating subsidiaries. Shenyang China Resources Thermal Power benefited from the decline in coal prices, and the contributed investment income increased by 20.68 million yuan, or 211%, compared with the same period last year. Haizhou opencast Coal Mine was trapped by the decline in the prosperity of the coal market, and the contributed investment income decreased by 23.74 million yuan or 49% compared with the same period last year.
Lack of short-term growth: the future focus is still mainly in the Baiyinhua power generation 2 × 660000 kilowatt installation project, while taking a stake in the subsidiary Haizhou open-pit coal mine final planning 24 million tons / year, long-term performance growth is expected. But in the short term, Baiyinhua Phase II has not yet been approved, the coal market has experienced an inflection point, short-term growth is insufficient.
Investment suggestion: do not consider additional issuance for the time being, it is expected that the utilization of hours in Liaoning Province will decline in the next few years, and the company will not put into production any new projects in the short term. It is estimated that from 2013 to 2015, the EPS will be 0.69,0.69 and 0.62 yuan respectively, corresponding to 9.7,9.8 and 10.8 times of PE.
Risk hints: electricity price reduction, coal price drop less than expected, utilization hour drop sharply, delay of construction in progress, etc.