Under the international “energy shortage”, the price of global traditional energy soared in 2021, and China’s coal price also reached a historical extreme in the third quarter. Affected by the improvement of the bank’s scene, the performance of coal listed companies in 2021 was generally good.
performance increased by more than 110% year-on-year
On March 28, Pingdingshan Tianan Coal Mining Co.Ltd(601666) ( Pingdingshan Tianan Coal Mining Co.Ltd(601666) ) disclosed that the annual report of 2021 showed that during the period, the company realized an operating revenue of 29.699 billion yuan, a year-on-year increase of 32.6%; The net profit was 2.922 billion yuan, a year-on-year increase of 110.61%.
Pingdingshan Tianan Coal Mining Co.Ltd(601666) is mainly engaged in coal mining, washing, processing and sales. The coal products are mainly blended coal and smelting clean coal. The varieties of clean coal are mainly coke concentrate, 1 / 3 coke concentrate and fertilizer concentrate. It is the largest producer and supplier of low sulfur and high-quality main coke coal in China.
The company’s performance has increased significantly, which is undoubtedly significantly affected by the improvement of industry prosperity.
Affected by the surge of coal price in October of 2020 and the shortage of power in the lower reaches of China, the price of coal soared by 5500 tons in October. Although in the fourth quarter of 2021, under the effect of a series of national policies to ensure supply and stabilize prices, China’s coal prices fell significantly, the overall price center is still higher than that in the same period of previous years.
According to the data released by the National Bureau of statistics, in 2021, the output of Coal Enterprises above designated size was 4.07 billion tons, a year-on-year increase of 4.7%, a record high. The coal output of central enterprises exceeded 1 billion tons for the first time.
With high yield and high price, the performance of listed coal companies is generally good in 2021.
According to the previous announcement, China Shenhua Energy Company Limited(601088) 2021 achieved an operating revenue of 335216 billion yuan, a year-on-year increase of 43.7%; The net profit was 50.269 billion yuan, a year-on-year increase of 28.3% China Coal Energy Company Limited(601898) 2021 also achieved an operating revenue of 231127 billion yuan, an increase of 63.96% year-on-year; The net profit was 13.282 billion yuan, a year-on-year increase of 124.58%.
Pingdingshan Tianan Coal Mining Co.Ltd(601666) also said that in 2021, China produced 4.07 billion tons of raw coal, a year-on-year increase of 4.7%, an increase of 5.6% over 2019 and an average increase of 2.8% over the two years; 320 million tons of coal were imported, a year-on-year increase of 6.6%. In 2021, China’s coking coal output was 490 million tons, a year-on-year increase of 1%; In 2021, China imported 54.7 million tons of coking coal, a year-on-year decrease of 24.6%. The accelerated macroeconomic recovery combined with the backflow of manufacturing orders brought about by the changes in the global epidemic prevention and control situation, the coordinated efforts of domestic and foreign demand, the recovery of China’s energy consumption, the impact of multiple factors such as security inspection, dual supervision of environmental protection and the absence of imported coal from Australia, the contradiction between supply and demand is prominent, and the coal price fluctuates at a high level.
to divest non coal business
Pingdingshan Tianan Coal Mining Co.Ltd(601666) believes that during the 14th Five Year Plan period, the dominant position and ballast role of coal in China’s energy system will not change, but with the vigorous promotion of the double carbon policy, the proportion of coal in the primary energy consumption structure will continue to decline, and the adjustment of energy structure has become the general trend. The industry is further moving towards high-quality development characterized by green, low-carbon and intelligence, and the clean and efficient development and utilization of coal has become the focus.
In this context, the company also further divested non coal assets and optimized the industrial structure.
On the 28th, Pingdingshan Tianan Coal Mining Co.Ltd(601666) also announced that in order to extend the industrial chain of listed companies and expand the comprehensive strength of enterprises, the company plans to invest 70 million yuan to establish a joint venture with Rufeng coking to build a coking project with an annual output of 1.2 million tons. After the project is completed and put into operation, it can realize an annual operating revenue of 2.697 billion yuan, a total annual profit of 245 million yuan, a total investment return rate of 13.69%, a total investment payback period (before tax) of 7.1 years, and a sales profit rate of 9.17%, which is higher than the benchmark return rate of 7% in the coking industry.
Meanwhile, Pingdingshan Tianan Coal Mining Co.Ltd(601666) plans to transfer 100% equity of Henan Tiantong Power Co., Ltd. (hereinafter referred to as “Tiantong power”) to the controlling shareholder China Pingmei Shenma energy and Chemical Group Co., Ltd. (hereinafter referred to as “China Pingmei Shenma Group”).
For the reasons for transferring Tiantong power, Pingdingshan Tianan Coal Mining Co.Ltd(601666) said that first, it is the need to implement the national “double carbon policy”, accelerate the construction of local power grid and improve the green guarantee capacity of energy security, so as to provide important support for the company to realize green mining. Second, it is conducive to the company to further highlight its main business, strengthen and refine the coal industry, and promote the high-quality development of the company.
In addition, Pingdingshan Tianan Coal Mining Co.Ltd(601666) also plans to spin off the production auxiliary and living service institutions (including personnel and business) and related assets not directly related to the main coal industry to China Pingmei Shenma Group, which will optimize and restructure these auxiliary industries for independent development.
The company said that through the stripping of auxiliary industries, it is conducive to the company’s benchmarking with advanced listed companies in the coal industry, making up for weaknesses and strengths, and further improving the operating mechanism, improving management efficiency and reducing management costs in accordance with the principle of marketization. After the divestiture of auxiliary industries, the advantages of the company’s main coal industry are more prominent, which is conducive to improving the production and operation evaluation indicators such as per capita work efficiency of the company’s main coal industry, enhancing the profitability of the company and creating more return on investment for shareholders; It will help the company improve its image in the capital market, attract more investors to participate in corporate governance and improve the level of corporate governance.
