\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 666 Pingdingshan Tianan Coal Mining Co.Ltd(601666) )
Event: on March 28, 2022, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 29.7 billion yuan, an increase of 32.6% year-on-year; The net profit attributable to shareholders of listed companies was 2.922 billion yuan, a year-on-year increase of 110.61%.
Benefiting from the rise of coal price, the performance increased greatly in 2021. In 2021, the company realized a net profit attributable to shareholders of listed companies of 2.922 billion yuan, an increase of 110.61% year-on-year. In the fourth quarter of 2021, the company realized a net profit attributable to the shareholders of the parent company of RMB 1.154 billion, a year-on-year increase of 236.35% and a month on month increase of 62.44%.
In 2021, the coal output declined slightly and the price rose significantly. According to the announcement, the company’s raw coal output was 28.85 million tons in 2021, a year-on-year decrease of 6.39%. The output of clean coal reached 11.88 million tons, a year-on-year increase of 3.2%, and the clean coal washing rate was 41.17%, an increase of 3.62 percentage points over 2020. In 2021, the coal sales volume was 30.65 million tons, a year-on-year decrease of 2.74%. The comprehensive selling price of commercial coal was 915.99 yuan, a year-on-year increase of 36.9%; The production cost of unit commercial coal was 670 yuan / ton, with a year-on-year increase of 31.1%. In 2021, the comprehensive gross profit margin of coal business was 28.13%, an increase of 2.88 percentage points year-on-year. In 2022, the company plans to produce 31.08 million tons of raw coal, a year-on-year increase of 7.7%, 12.35 million tons of clean coal, a year-on-year increase of 4%, and the washing rate of clean coal is 39.7%, basically stable. According to the introduction of the company’s interactive platform, the price of the company’s main coking coal long-term association is basically the same as Q4 in 2021 and remains at a high level. Therefore, the company’s 2022q1 performance is still worth looking forward to.
The number of employees in the company continued to decline. The company actively promotes the intelligent construction of coal mines, and invests funds to upgrade equipment every year to improve the mining efficiency of single mining face. In the future, all 14 mines will complete intelligent coverage; At the same time, the company vigorously carried out staff reduction and efficiency increase. The company deployed the ten-year plan for human resources reform, actively and steadily promoted the “great job transfer of 10000 mining workers”, and strive to optimize the number of coal mine workers to less than 40000 in 5-8 years, so as to greatly improve the per capita work efficiency. According to the announcement, by the end of 2021, the number of on-the-job employees of the company was 65281, a decrease of 8985 or 12.1% compared with 74266 in the same period of last year. The reduction of personnel burden is conducive to the implementation of cost reduction and efficiency increase of the company and the release of the company’s performance.
Cash dividend 60%, dividend yield 5.09%. According to the announcement, the company plans to distribute cash dividends of 7.6 yuan (including tax) to all shareholders for every 10 shares, totaling 1.76 billion yuan, accounting for 60.21% of the net profit available for distribution attributable to shareholders of the listed company in that year. The dividend rate is 5.09% based on the stock price on March 28, 2022.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 4.217 billion yuan, 4.413 billion yuan and 4.591 billion yuan, corresponding to EPS of 1.82/1.91/1.98 yuan / share respectively, and the PE corresponding to the closing price on March 28, 2022 will be 8 times. Maintain a “recommended” rating.
Risk tip: coal prices have fallen sharply, the improvement of downstream demand margin is less than expected, and the effect of staff reduction is less than expected
