Huaibei Mining (600985): A slight increase in the winning year of 19Q1 has obtained the Taohutu Wellfield Prospecting Certificate
In the first quarter of 19Q1, the profit increased slightly, and the company with better cost control during the period realized net profit attributable to mothers in the first quarter of 20199.
1 ‰, an annual increase of 2472 ‰ or 2.
8%, down 1 from the previous month.
800 million or 16.
In 1Q1, the company’s overall operating business gross profit decreased by 2 every year.
200 million US dollars, but the net profit attributable to mothers still achieved a small increase, mainly due to: (1) the cost control during the period, 19Q1 fell by about 1.
(2) Other income increased by 47.54 million yuan per year, mainly due to the completion of the transfer of other funds from the security replenishment state-funded project.
(3) The profit of minority shareholders decreased by approximately 94.1 million yuan, mainly due to the decline in profits of individual non-wholly owned subsidiaries.
In 19Q1, the coal production and sales of the company have improved. In early April, the Inner Mongolia Taohutu Wellfield Prospecting Certificate was obtained. According to the company’s operating data announcement, the 19Q1 company’s coal production and sales were replaced by 537 (-7).
9%) and 465 in the short term (-14).
According to our calculations, the company’s 19Q1 ton of coal revenue and ton of coal cost were 727 yuan (ten years + 5).
7%) and 455 yuan (previously +7.
7%), gross profit of 273 yuan per ton (twice + 2
According to the company’s announcement, its subsidiary Chengda Mining has obtained the mineral resource exploration license of Taohutu mine field in the Nalinhe mining area of Inner Mongolia Dongsheng coal field in early April (including exploration area: 71.
87 square kilometers; validity period: January 7, 2019 to January 7, 2022).
The Taohutu well field has an estimated resource reserve of 14.
5 billion tons, the total transfer income determined by the exploration right is RMB 54.
The planned production capacity is 800 years / year and the service life is 70.
The coal quality of this mining area is non-sticky coal, and its geographical location is close to that of Yiqing Hongqinghe Mining Area.
The scale and profitability of coking business are at the forefront of the industry, and the third phase of Lintong Coking is going to further extend the industrial chain. According to the company’s annual report, the company’s coking business is currently operated by Lintong Coking (51% of the company’s shares).Co-production of methanol 40 additives, coal tar 30 additives, crude benzene 8 additives.
Lintong Coking’s coke production and sales in 2018 were 386 wavelengths and 380 wavelengths, respectively, attributable to net profit6.
2.4 billion yuan, the net profit per ton of coke is more than 160 yuan.
Since the second phase of the project was put into operation in 2017, the cumulative production capacity in the past two years 杭州桑拿 has been climbing, and it is expected to reach full production in the next few years.
In addition, as the third phase of Lintong Coking Project, the million-ton carbon-based new material sub-project will gradually accelerate its construction in 2019, and the company’s coking industrial chain is expected to further extend in the future.
According to the company’s operating data announcement, 19Q1 company’s coke production and sales were 89 titles (-1 per year.
6%) and 86 tons (at least -3.
6%), an average of 1922 yuan per ton of coke (ten years-0.
Methanol production and sales were 8.
3 initially (at least +13.
8%) and 8.
4 initial (at least +22.
1%), the average formaldehyde per ton of methanol is 2006 yuan (ten years -17).
Profit forecast and investment rating In the next few years, the supply and demand of the coal industry will maintain a basic balance. The coke industry will also benefit from environmental protection and industry capacity reduction. The prices of coal and coke will continue to run at a high level.35 years old
8.1 billion, 36.
4.5 billion and 36.
51 ppm, with a fully diluted EPS of 1.
65 yuan, 1.
68 yuan and 1.
68 yuan, the dynamic PE is 7 respectively.
7X and 7.
7X, while the company’s current PE (TTM) is 6.
3 times, it is estimated to be the lowest in the coking coal sector (the existing coking coal industry PE (TTM) is called 10).
The company’s asset quality and profitability are at the forefront of the industry. We believe that there is room for improvement in the company’s assessment. We continue to comment on the March 31 annual report to maintain a reasonable value14.
8 yuan / share remains unchanged, corresponding to a 19-year PE of 9 times. Maintain “Buy” rating.
Risk warning: downstream demand exceeds expectations, coal coke prices fall more than expected, safety accidents occur in coal mines, environmental protection and production limit upgrades, and exploration progress is beyond expectations;