\u3000\u3000 Shaanxi Coal Industry Company Limited(601225) (601225)
Event: the company issued the announcement of 2021 annual performance express. In 2021, the company’s operating revenue was 152.4 billion yuan, a year-on-year increase of 60.3%; The total profit was 40.58 billion yuan, a year-on-year increase of 69.3%; The net profit attributable to the parent company was 20.94 billion yuan, a year-on-year increase of 40.8%.
Single quarter profit hit a record high. In terms of quarters, the net profit attributable to the parent company in Q4 of 2021 was 6.68 billion yuan in a single quarter, a year-on-year increase of 96.2% and a month on month increase of 11.9%, reaching a record high in a single quarter. The main reason was that the coal price remained high in the fourth quarter. At the same time, the company actively implemented stable growth and guaranteed supply, further released high-quality coal production capacity, and the sales volume of self-produced coal increased month on month.
The production and sales of self-produced coal recovered steadily. In 2021, the company produced 136 million tons of raw coal, with a year-on-year increase of 8.4%; The coal sales volume was 232 million tons, a year-on-year decrease of 3.9%; The sales volume of self-produced coal was 134 million tons, a year-on-year increase of 8.4%. Quarterly, the company’s raw coal output in the fourth quarter was 33.22 million tons, a year-on-year decrease of 4.6% and a month on month increase of 2.3%; In the fourth quarter, the coal sales volume was 62.28 million tons, a year-on-year decrease of 9.3% and a month on month decrease of 4.6%. Among them, the sales volume of self-produced coal was 32.85 million tons, a year-on-year decrease of 4.5% and a month on month increase of 2.9%; The sales volume of trade coal was 29.32 million tons, a year-on-year decrease of 14.1% and a month on month decrease of 11.8%.
High score red highlights the investment value. In September 2020, the company released the shareholder return plan for the next three years (2020-2022). The company promised to distribute dividends in cash under the condition of making profits in the current year and positive accumulated undistributed profits. The profit distributed in cash every year shall not be less than 40% of the distributable profits realized in the current year and the amount shall not be less than 4 billion yuan. Considering the net profit attributable to the parent company of 20.94 billion yuan in 2021, it is estimated that the dividend will be about 8.375 billion yuan and the dividend rate will be as high as 5.85% (based on the closing price on February 23, 2022).
Steadily promote the Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) layout and cultivate new drivers of development. Based on the capital market and in accordance with the national target direction of 30 / 60 carbon peak and carbon neutralization, the company has optimized the industrial investment map, established an investment consulting model, and arranged high-quality assets in new energy, new materials, new economy and other industries. In the first half of the year, the company further optimized the equity investment industry map and sorted out four dimensions, 22 tracks and 100 + segments according to the policy guidance of “carbon peak and carbon neutralization”. In the first three quarters of 2021, the company realized an investment income of 1.95 billion yuan; As of Q3 in 2021, the company’s “long-term equity investment” was 11.92 billion yuan, which is expected to continue to increase its performance in the future.
Investment advice. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 20.94 billion yuan, 22.87 billion yuan and 23.68 billion yuan respectively, and the corresponding PE will be 6.8, 6.3 and 6.0 respectively, maintaining the “buy” rating.
Risk tip: demand fell faster than expected, coal prices fell sharply, and the national production capacity delivery progress exceeded expectations.
