Coal Industry (600188): Inner Mongolia’s output recovers and high-quality cash flow drives continued improvement in profitability
This report reads: Australian coal prices fall, single-quarter profit declines within expectations in the third quarter, production in the Inner Mongolia mining area continues to recover, and operating cash flow improvement drives continuous optimization of financial expenses, which will lead to price reductions and high dividends will remain long-term concerns.
Investment points: Maintain profit forecast and target price, and maintain “overweight” rating.
The company achieved revenue of 1506 in the first three quarters.
1.1 billion, an annual increase of 26.
36%, net profit attributable to mother 69.
840,000 yuan, an increase of 26 in ten years.
88%, deducting non-net profit 66.
49 ppm, an increase of 12 in ten years.
97%, performance in line with expectations, maintaining 2019?
Profit forecast for 2021 to 1.
02 yuan and 11.
Target price of 38 yuan, maintain “overweight” rating.
The third quarter earnings decline was within expectations, mainly due to lower prices in Australia.
The company’s third quarter net profit attributable to mother 16.
23 trillion, compared with 30 in the second quarter.
520,000 yuan decreased, but increased by 39 compared with the third quarter of 2018.
The first three quarters of Yancoal’s Australian coal sales price was 553.
6 yuan / ton, down 11 before.
3%, a decrease from the first half.
7% expanded, and gross profit fell by 18 in the first three quarters.
The decline in overseas coal prices this year has fallen, and the price of coal in the first three quarters of the Port of Newcastle has fallen by 25.
0%, the company’s coal price performance is still stronger than the market, reflecting a certain price is reasonable.
杭州桑拿 Inner Mongolia mining area resumed production smoothly, there is still room for the future.
The company’s Shilausu and Yingpanyu coal mines have been disposed of and the first half of the year has been completed. Zhuanlong Bay increased from 500 tons / year to 1,000 tons / year. The production capacity of the Inner Mongolia mining area was gradually released. Haosheng Coal Industry and Ordos Nenghua Coal ProductionIncreased by 1.
22%, down 1.
34%, a decrease of 36 from the median report.
54% narrowed significantly, of which the single-quarter output in the third quarter increased by 108.
09%, there is still room for recovery in the future.
The improvement of operating cash flow led to continuous optimization of financial expenses.
Financial expenses for the first three quarters of the company19.
5 trillion, compared with 33 in the same period last year.
$ 900 million fell, of which net interest expense was 16.
2 ppm, compared with 26 in the same period last year.
100 million down 38%.
The company’s operating net cash flow for the first three quarters was 148.
300 million is the best in the past five years. The gradual cost reduction and high dividends will still be the long-term focus.
Capacity release was not up to expectations; methanol prices continued to fall.