Wintime Energy's net income is expected to be between RMB 1.16 billion to RMB 1.26 billion in the first half of the year, a year-on-year increase of 14.54% to 24.41%. However, the company's stock price has been fluctuating above the 'face retreat warning line', and recently implemented both stake increase and buyback measures.
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Thanks to the complementary operation advantages of coal and electrical utilities, Wintime Energy (600157.SH) with a total market value of over 25 billion yuan is expected to achieve year-on-year growth in net income in the first half of the year, and the Hai-Ze-Tan coal mine which completed the first phase of construction ahead of schedule may become the company's new profit pillar. In terms of product structure, operating income of 4.01/12.88/0.06 billion yuan was respectively for 10-30 billion yuan products.
Wintime Energy announced tonight that it is expected to achieve a net income attributable to the mother of 1.16-1.26 billion yuan in the first half of 2024, an increase of 14.54%-24.41% compared to the same period last year.
The company stated that the main reason for the increase in performance is the complementary operation advantages of the company's coal and electrical utilities, an increase in electricity generated by the electrical utilities compared to the same period last year, a decrease in the purchase cost of thermal coal, and the maintenance of a good profit margin for coal operations.
The Hai-Ze-Tan coal mine, which completed the first phase of construction ahead of schedule, may become Wintime Energy's new profit growth point. The company stated that Hai-Ze-Tan coal mine is a key project for the company to fully realize the goal of coal-power integration. The coal mainly consists of high-quality chemical coal and thermal coal, and the resource reserve is 1.145 billion tons with an average calorific value of more than 6,500 kcal.
As of the end of May 2024, all four shafts had been dug to the bottom and coal had been extracted from them. The first phase of construction was completed a month ahead of schedule. In June, the construction of the second phase began. By the end of 2024, all four shafts will be connected in series for the supply of power, ventilation and drainage systems. In the third quarter of 2026, coal production conditions will be met, and in 2027, coal production will be achieved, ultimately realizing the goal of "coal in three and a half years, and construction and production completed in four years", the construction period is 2-3 years earlier compared to similar mines in Shaanxi and Inner Mongolia.
After the Hai-Ze-Tan coal mine fully releases its production capacity, based on the average coal price of the market in 2023, it is preliminarily estimated that the mine will generate approximately 9 billion yuan in additional revenue, 4.4 billion yuan in additional net income, and 5.1 billion yuan in additional net operating cash flow. Based on the revenue and net income of stock received in 2023, the company's revenue will reach 39.12 billion yuan, the net income will be 6.905 billion yuan, and the net operating cash flow will be 12.125 billion yuan, which will become the company's new profit pillar. The 2023 annual report shows that the company's revenue is 30.12 billion yuan, and the net profit attributable to the parent company is 2.266 billion yuan.
In terms of new energy, Wintime Energy is advancing its energy storage projects according to plan. The company's first phase of a 3,000-ton/year high-purity vanadium pentoxide production line and a 300MW/year new generation of high-capacity, long-life all-vanadium flow batteries production line which is the largest domestic line with the highest degree of automation and related products started construction in June 2023 and is expected to be put into operation one after another in the fourth quarter of 2024.
In the secondary market performance aspect, Wintime Energy's stock price has been weak in recent years and closed at 1.12 yuan/share today. Faced with the fluctuating stock price above the "face delisting line", Wintime Energy has recently increased stake & buy back shares. The company launched a stock repurchase plan worth 150 million to 300 million yuan last night. Not long ago, some of the company's core management personnel had already completed the sixth round of stake & buy back shares. However, according to the company's announcement, in this stake & buy back plan, 29 core management personnel of the company increased their shareholding by a total of 13.754 million shares, which only accounted for 0.0619% of the total shares of the company.