\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 001 Jinneng Holding Shanxi Coal Industry Co.Ltd(601001) )
Event: on April 29, 2022, the company disclosed the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 18.265 billion yuan, a year-on-year increase of 67.49%; The net profit attributable to the parent company was 4.658 billion yuan, a year-on-year increase of 431.88%. In the first quarter of 2022, the company achieved an operating revenue of 4.123 billion yuan, a year-on-year increase of 16.93%; The net profit attributable to shareholders of listed companies was 900 million yuan, a year-on-year increase of 78.23%.
In 2021, the volume and price of coal business increased simultaneously, and the profit thickened. The company achieved a raw coal output of 349727 million tons, a year-on-year increase of 3.3578 million tons, an increase of 10.62%. The sales volume of commercial coal was 303651 million tons, a year-on-year increase of 2.9522 million tons, an increase of 10.77%. The selling price per ton of coal was 583 yuan / ton, a year-on-year increase of 203 yuan / ton, an increase of 53.5%, and the sales cost per ton of coal was 257.1 yuan / ton, a year-on-year increase of 15.8 yuan / ton, an increase of 6.6%. The comprehensive gross profit margin of coal business was 55.9%, up 19.42 percentage points year-on-year.
The non coal business is still at a loss. In 2021, the non coal business achieved a gross profit of – 80 million yuan, which was in a state of loss as a whole, but the loss was small.
In the first quarter of 2022, the output increased slightly and the price rose sharply. In the first quarter, the company achieved a raw coal output of 8.6301 million tons, a year-on-year increase of 368000 tons, an increase of 4.5%. The sales volume of commercial coal was 6.996 million tons, a year-on-year decrease of 405800 tons, a decrease of 5.5%. The selling price per ton of coal increased by 73.7% year-on-year to 573 yuan / ton, the selling cost per ton of coal increased by 81.6% year-on-year to 154.4 yuan / ton, the gross profit of coal business was 2.05 billion yuan, a year-on-year increase of 57.6%, and the gross profit margin was 51.1%, a year-on-year decrease of 2.1 percentage points.
Release the agreement to solve horizontal competition, and the asset injection of major shareholders can be expected. The company issued the announcement on solutions to avoid horizontal competition and signing relevant agreements, In the announcement, it is proposed that “Jinneng holding group will take active and effective measures to retain coal assets to make such assets meet or meet the conditions for injection into the listed company as soon as possible (including but not limited to: clear property rights, complete procedures, high-quality resources, yield not lower than the similar assets of the listed company, etc.) And within two years from the date of meeting the conditions for injection into the listed company, start the procedure of gradually placing all relevant assets into Jinneng Holding Shanxi Coal Industry Co.Ltd(601001) by means of timely injection, transfer of control or sale. Jinneng holding group brings together the high-quality coal resources of the former three major coal enterprises in Shanxi. At present, the total coal production capacity is about 404 million tons / year, Jinneng Holding Shanxi Coal Industry Co.Ltd(601001) coal production capacity is only 48.1 million tons / year (including Tongxin mine), and there is a wide space for asset injection.
The first dividend since 2015, with a dividend yield of 3.14%. The company plans to distribute cash dividends of RMB 4.0 (including tax) for every 10 shares, with a cumulative cash dividend of RMB 669 million, accounting for 14.4% of the net profit attributable to the shareholders of the parent company in 2021 and a dividend rate of 3.14%.
Investment suggestion: we predict that the net profit attributable to the parent company from 2022 to 2024 will be 6.047 billion yuan, 6.393 billion yuan and 6.468 billion yuan, corresponding to EPS of 3.61/3.82/3.86 yuan / share respectively, and PE corresponding to the share price on April 28, 2022 will be 4 times, 3 times and 3 times respectively, with low valuation in the industry. Maintain a “recommended” rating.
Risk tip: coal prices fell sharply, the reform of state-owned enterprises in Shanxi was less than expected, and the group’s asset injection was less than expected.
