Net profit returned to mother in '23 was -26% year-on-year, and the dividend ratio increased to 50%. The company achieved operating income/net profit of RMB 28.5.2 billion to mother in '23, -18.6%/-26.3% year on year, and net profit of 5.08 billion yuan after deduction of non-net profit of -31%. Q4 In a single quarter, the company's net profit to mother was 901 million yuan, -56%/-27.9% YoY. The company plans to pay a dividend of 7.18 yuan (tax included) for every 10 shares in '23, for a total dividend of 2.59 billion yuan, with a dividend ratio of 50% (34%/30% in 21/22), calculated at the closing price on April 22, with a dividend rate of 7.4%.
The cost control of the coal business is excellent, and the construction of the 10 million ton mine under construction and the 5 million ton production capacity increase in Yushu Slope have been accelerated. 1) Production and sales volume: In '23, the company's coal production/sales volume was 4591/4 million tons, +1.5%/-11.7% year-on-year. 2) Price and cost: In '23, the company's comprehensive unit sales price was 606 yuan/ton, -14.6% year over year, and the comprehensive unit cost was 296 yuan/ton, -18.9%. The cost reduction was higher than the selling price, and the gross margin of the coal business increased 2.6 pct to 51.2%. 3) Mines under construction: As of the end of 23, the two mines under construction were 7 yuan (production capacity 5 million tons, equity ratio 100%) and Poli (production capacity 5 million tons, equity ratio 70%). The project progress was 79% and 28%. The company accelerated the pace of construction of 7 yuan and Poli. It is expected that 7 yuan will enter the joint trial operation stage in 2024. Boli will have conditions for joint trial operation by the end of 2025, and production capacity growth can be expected. Furthermore, the company is coordinating procedures to increase the production capacity of 5 million tons per year in Yushupo, and it is expected that the EIA procedure for the energy improvement project will be completed by the end of October.
High quality layout The entire “material-cell-battery-application” industry chain for sodium-ion batteries has achieved mass production of pack batteries and energy storage batteries. The company has comprehensively built the entire “material-cell-battery-application” industry chain for sodium-ion batteries, and lays out the entire sodium-ion electrochemical energy storage industry chain with high quality. 1) Positive and negative electrode materials: In 2023, the positive and negative electrode materials produced by Na-Cu Energy and Carbon Energy Technology achieved revenue of 32.57 million yuan and 21.28 million yuan respectively.
2) Battery cells and pack batteries: In 2023, the wholly-owned company Huanacin built the world's first mass production line for 1GWh sodium-ion batteries and production line for 1GWh sodium-ion pack batteries per year. It has achieved mass production of 48V18Ah electric bicycle pack batteries and 48V and 72V energy storage battery modules.
Promote strategic transformation and development in the field of new energy, and improve the new energy industry. 1) Photovoltaics: PV modules target industry leaders. P-type and N-type yield have reached industry-leading levels, achieved 3GW sales targets for 24 years, and optimized efficiency. 2) Sodium-ion batteries: Continue to open up the entire “sample product product” chain to achieve the 24-year sales target of 400MW or more for sodium electricity. Promote the construction of the Datong project, strive to produce qualified products within the year, and help the new energy and new materials industry become a new efficiency growth point.
Profit forecasting and valuation. We believe that the company's coal business output is expected to grow steadily and profits are expected to remain high; new energy projects are progressing steadily, and sodium-ion battery projects have broad prospects. We estimate that the company's net profit for 24-26 will be 4.555/51.0/5.70 billion yuan, respectively, and the corresponding EPS will be 1.26/1.41/1.58 yuan, respectively. Referring to companies with comparable coal and lithium-ion battery materials, the company will be given 9 to 10 times PE in 24 years, with a corresponding reasonable value range of 11.36 to 12.62 yuan, maintaining the “superior to the market” rating.
Risk warning. Demand fell sharply, and the commissioning of new construction projects fell short of expectations.