Gelonghui on September 29th | Shenwan Hongyuan Research Report pointed out that due to Huabei Mining Holdings (600985.SH) located in the eastern region where resources are significantly scarce, the company's performance is expected to remain high in the next 3-5 years with coal prices staying at high levels. It is forecasted that the company's EPS for 2024-2026 will be 1.95, 2.12, and 2.32 yuan respectively; corresponding PEs will be 8.4 times, 7.8 times, and 7.1 times. From a relative valuation perspective, using A shares of 6 coking coal companies including Shanxi Coking Coal Energy Group, Shanxi Coking, Pingdingshan Tianan Coal Mining, Shanxi Lu’an Environmental Energy Dev.Co.,Ltd, Jizhong Energy Resources, and Shanxi Hua Yang Group New Energy as benchmarks, the average estimated PEs for comparable companies in 2024-2026 are 10.7 times, 8.6 times, and 7.3 times. Due to the expected completion of the Taohutu Coal Mine by the end of 2025; 2*0.66 million kilowatt power plants expected to be completed by the end of 2025; a 0.6 million ton anhydrous ethanol project already in production, expected to gradually contribute profits; as well as 5 sand and gravel aggregate mines expected to be completed by the end of 2024, the company stands out in the industry with significant production capacity growth opportunities. Therefore, the industry gives the company a certain valuation premium, giving a target PE of 11 times for 2024, with a 30% upside potential compared to the current stock price. The first coverage, recommending a 'buy' rating for the company.