利价方面，2024H1 公司吨煤售价1144 元/吨，同比-9.8%，公司吨煤成本565 元/吨，同比-15.7%，公司吨煤毛利579 元/吨，同比-3.3%。24Q2 公司吨煤售价1112 元/吨，同比-2.6%，环比-5.5%，吨煤成本537 元/吨，同比-13.8%，环比-9.4%，吨煤毛利575 元/吨，同比+10.9%，环比-1.5%。The company announced its 2024 semi-annual results. The company's net profit for the first half of 2024 was 2.935 billion yuan, a year-on-year decrease of 18.19%; operating income was 37.236 billion yuan, a decrease of 0.17% year-on-year. 2024Q2's net profit to mother was 1.346 billion yuan, down 8.88% year on year; operating income was 19.953 billion yuan, up 8.66% year on year.
The steady layout of the coal business has reduced costs significantly, freeing up profit margins:
In terms of production, 2024H1 produced 10.32 million tons of commercial coal, -8.9% year-on-year, and sold 8.03 million tons of commercial coal, or -18.2% year-on-year. 24Q2 commercial coal production was 5.09 million tons, -10.0% year over month, -2.9% month on month, commercial coal sales 4.01 million tons, -15.0% year on year and -0.5% month on month.
In terms of interest prices, the price of a ton of coal of the 2024H1 company was 1,144 yuan/ton, -9.8%; the cost of the company's ton of coal was 565 yuan/ton, -15.7% compared to the same period; the company's gross profit per ton of coal was 579 yuan/ton, -3.3% year-on-year. The 24Q2 company sold 1,112 yuan/ton of coal, -2.6% year-on-year, -5.5% month-on-month. The cost of a ton of coal was 537 yuan/ton, -13.8% year-on-month, -9.4% month-on-month, gross profit of 575 yuan/ton of coal, +10.9% year-on-year and -1.5% month-on-month.
The reduction in losses and the expansion of profits in the non-coal business are also points of growth in performance. Tanxin Technology 24H1 net profit -0.16 billion yuan, net profit for the full year of 2023 -0.401 billion yuan; Shenyuan Coal Chemical 24H1 net profit of 0.103 billion yuan, net profit for the full year of 2023 -0.038 billion yuan; Huancheng Power 24H1 net profit of 0.028 billion yuan, and net profit for the full year of 2023 0.016 billion yuan.
Growth is prominent. Construction of the main shaft of the Taohutu mine has been completed, aiming to be completed by the end of 2025. The 0.6 million ton anhydrous ethanol project for the comprehensive utilization of methanol has entered the stage of comprehensive commissioning, production and operation, and is about to form a new profit growth point for the company; 0.1 million tons of dimethyl carbonate, 0.03 million tons of carbonate, and 0.03 million tons of ethylamine, which use methanol, etc. as basic raw materials, are speeding up construction, continuously thickening and lengthening the industrial chain, and promoting the circular development of the chemical industry. New energy was added to the power sector, and the 2×660MW ultra-supercritical generator set project officially started in April; some 60MW centralized surface photovoltaic projects in Sun Tuan and Qingdong were connected to the grid to generate electricity. Construction of non-coal mines is progressing at an accelerated pace. Five mines, including Linxiang Shenglong and Lexi Xilangling, are aiming to be completed and put into operation by the end of 2024; construction of the Zhuji Tower mine officially began in May; and exploration work at the Nanzhao mine in Henan has basically been completed.
Investment advice. Considering the decline in coking coal prices, we lowered the company's performance expectations. We expect the company's net profit to be 5.5 billion yuan, 5.9 billion yuan, and 6.5 billion yuan respectively from 2024 to 2026, corresponding to PE of 6.7, 6.2, and 5.7, maintaining the “buy” rating.
Risk warning: The commissioning of the mine under construction fell short of expectations, coal prices dropped sharply, and the progress of the project under construction fell short of expectations.
