Depth-Company-Yangquan Coal (600348): 14% growth in first three quarters, steady performance and good performance, low estimates

Depth * Company * Yangquan Coal (600348): 14% growth in first three quarters, steady performance and good performance, low estimates

In the first three quarters of 19 years, net profit attributable to mothers was 1.6 billion, an annual increase of 14%.

In the third quarter, the net profit attributable to the mother was 5.

The 3 trillion chain remained flat and performed well, continuing a solid and sound track record.

The cost control is better, the financial structure is optimized, and the yield has increased. Under the environment of falling coal prices, the net profit per ton of coal still increased by 2%.

The company has better potential for endogenous and epitaxial growth, and its earnings have risen steadily. It is estimated to be not expensive (19-year P / E ratio is only 6.
.

3 times), benefiting from Shanxi’s national reform.

Maintain BUY rating.

Key points to support the rating The 3 quarter report has better results, in line with expectations, optimized financial structure, and improved profitability.

In the first three quarters of 19, net profit attributable to mothers was 1.6 billion, an annual increase of 14%.

The net profit after deduction is 16 trillion, an annual increase of 29%, and it has performed well.

In the third quarter, the net profit attributable to the mother was 5.

300 million yuan remained flat and performed well.

The main business income in the first three quarters was 24.5 billion yuan, a decrease of 3 per year.

1%.

Gross profit increases by 7 per year.

7% to 470,000 yuan.

The period expense ratio is from 6.

2% dropped to 5.

7%, mainly due to a substantial decline in financial expenses by 39% to 2.

600 million.

Asset-liability ratio dropped to 50% from 55% in the same period last year.

Operating profit 武汉夜生活网 was US $ 2.2 billion, an increase of 13% per year.

Maximum profit margin improved: gross profit margin increased from 17.
.

4% increased to 19.

4%, operating margin from 7.

7% increased to 9.

1%, with a net profit margin of 5.

6% increased to 6.

5%.

Gearing ratio by 7.

8% dropped to 7.

3%.

Production increased by 7%, prices and costs both fell, and net profit per ton of coal increased by 2% to 55 yuan.

In the first three quarters, coal output was 3,056 tons, an increase of 7%, and sales were basically unchanged at 5,452 tons. The price of coal including outsourced coal fell by 5% to 411 yuan / ton, and production costs fell by 7% to 333 yuan, per ton of coalGross profit increased 3% to 78 yuan, and net profit per ton of coal increased 2% to 55 yuan.

Among them, the third quarter cereal output increased by 6.

8% to 1,039 is expected, sales volume growth 9% to 2,021 is expected.
The price per ton of coal, including purchased coal, fell by 7% to 398 yuan / ton, the cost per ton of coal fell by 5%, and the gross profit per ton of coal fell by 14% to 73 yuan.

Advantages: The company has better potential for endogenous and epitaxial growth. Wenjiazhuang Coal Mine’s 90 hole expansion to 500 has been approved by the National Development and Reform Commission.
The group has approximately 3,000 tons of capacity under construction.

The company’s own profit is stable and its performance is stable, which is not expensive.

It is estimated that due to increasing downward pressure on the future economy and downward pressure on market coal prices, we will reduce our earnings by 6% and 12% to 0 by 2020 and 2021.

87 yuan and 0.

90 yuan (previous forecast: 0.

92 yuan, 1.

02 yuan).

Estimated to be cheap, with a P / E ratio of 19 in 19
.

3x, maintain BUY rating.

The main risks faced by the rating were higher than expected; coal prices fell.