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Financial Association News, October 28th (Reporter: Liu Yue) The coal sales volume increased in the first three quarters, with revenue and net income of Beijing Haohua Energy Resource (601101.SH) both growing by over 10% year-on-year. Industry experts widely believe that coal prices will fluctuate within a certain range in the future, with expectations of a decrease followed by a limited increase.

Beijing Haohua Energy Resource announced in the evening that the company achieved revenue of 6.844 billion yuan in the first three quarters, an 11.82% year-on-year increase; net profit of 1.119 billion yuan, a 10.74% year-on-year increase. In the third quarter alone, revenue reached 2.109 billion yuan, a 6.95% year-on-year increase; while net profit was 0.26 billion yuan, a 13.93% year-on-year decrease.

Looking at the company's business data, both coal production and sales volume increased by approximately 10% in the first three quarters, reaching 14.0454 million tons and 1405.74 million tons respectively; Coal sales revenue and gross profit also saw a slight year-on-year increase, reaching 6.07 billion yuan and 3.204 billion yuan respectively, with year-on-year growth of 7.04% and 0.67% respectively.

However, the company's Q3 coal sales gross profit decreased by 12.01% year-on-year, possibly due to the decline in coal prices during the same period. The average prices of thermal coal and coking coal at ports both dropped compared to Q2.

According to data from China Coal Market, the average spot price of 5500 kcal thermal coal at ports in Q3 2024 is about 848 yuan/ton, a decrease of approximately 2.33% year-on-year and 0.15% compared to the previous quarter; The average price of main coking coal from Shanxi, Jingtang Port in Q3 2024 is 1889 yuan/ton, showing a 9.67% decrease from the previous quarter and approximately 11.27% year-on-year decrease.

Beijing Haohua Energy Resource's main business includes coal production and sales, methanol production and sales, as well as transportation on dedicated railroad lines. The company's interim report indicates that nearly 90% of the sales revenue comes from coal and coal products. By the end of 2023, the company's coal production capacity reached 19.3 million tons/year, with a target in the 14th Five-Year Plan period to strive for a certified coal production capacity of 30 million tons by the end of 2025.

Public information shows that the company currently has 4 coal mines, including the 8.5 million tons per year Gaojialiang Coal Mine and the 6 million tons per year Hongqingliang Coal Mine located in Inner Mongolia Erdos. The main coal types are non-stick coal and long flame coal; Hongdunzi Coal Industry Hongyi Mine and Honger Mine both have a capacity of 2.4 million tons per year and are located in Ningxia Yinchuan, with gas coal as the main coal type. Benefiting from the capacity increase of Gaojialiang Coal Mine by 2.5 million tons and the joint trial operation of Hongyi Mine in 2022, and the joint trial operation of Honger Mine in December 2023, the company is in a capacity climbing phase.

For the future trend of coal prices, the industry generally believes that coal prices will remain relatively stable, fluctuating within a certain range. Shanghai Ganglian E-commerce Holdings Coal and Coke Business Department coal analyst Zhang Wenwen told Caixin journalist that in October, the thermal coal price stagnated and fell back. With the departure of high temperatures, thermal coal entered the seasonal off-peak coal consumption period, and power plant inventories passively piled up, resulting in a fading coal demand in the market. Entering November, the stage of winter coal reserves is approaching, combined with the rebound of international coal prices, providing a bottom support for domestic coal prices. However, the current high inventory situation in ports and power plants will suppress the extent of coal price increase. In the short term, terminal purchases are mainly for long-term contracts to replenish inventories, with a small amount of market coal purchases when prices hit bottom. It is expected that coal prices will first decline and then rise, but the upward momentum is limited.