State Coal Industry (600188) Quarterly Report Review: Performance Exceeds Expected Growth Debt Continues to Decrease

Event: On April 26, the company released the 2019 first quarter report, which stated that the company realized operating income of 482.

44 ppm, an increase of 49 in ten years.

21%; total profit 39.

1.5 billion, an increase of 8 in ten years.

33%; net profit attributable to mother 23.

08 million yuan, an increase of 3 in ten years.

63%; net profit after deduction is 22.

30 ppm, an increase of 2 in ten years.

93%; net cash flow from operating activities was 44.

24 ppm, an increase of 35 in ten years.

30%; basic profit income is 0.

47 yuan.

Comment: In the first quarter, the production of Shilawusu Coal Mine, the marginal improvement of production in Shaanxi-Mongolia base in the future will drive the company’s growth.

The company’s equity coal production in the first quarter of 2019 was 2319.

2 First, downgrade by 110 per year.

1 announcement (-4.

53%), down 93 from the previous month.

1 announcement (-3.

86%).

The decline in the company’s commercial coal output was due to the decrease in the production output of the Zhaolou Coal Mine, which is owned by Heze Nenghua, according to the new approved capacity.

9 announcements (-29.

16%), down 4 from the previous month.

2 baseline (-6.

49) to 60.

5 Initially, due to the impact of safety and environmental protection policies of Haosheng Coal Industry, coal production at its Shilawusu coal mine was restricted and its output decreased by 119.

9 Statutory (-73.

11%), down 31.

3 announcements (41.

51%) to 44.

1 nominal.

In addition, in the first quarter of 2019, the output of commercial coal in Shandong headquarters was 791.

9 for the first time, higher than the added value of 18.

1 announcement (2.

34%); Yancoal Australia ‘s commercial coal production was 881.

Initially, the increase exceeded 48.

9 announcements (5.

87%).

Since mid-April, the production of Shilawusu Coal Mine has improved significantly. The production of Shilawusu Coal Mine is on track and the capacity of Zhuanlong Coal Mine has been released. The Shaanxi and Mongolian Base will contribute to the company’s main 2-3 yearsProduction increase. The effect of the implementation of the clean coal strategy was obvious, and the company’s coal price in the first quarter increased from the same month last month.

Since 2019, the company has focused on the production of clean coal. In the first quarter, the company’s comprehensive coal content was 596 yuan / ton, a further increase of 45.

94 yuan / ton (8.

36%), an increase of 64 from the previous month.

36 yuan / ton (12.

11%).

Among them, Shandong headquarters has a purity of 625 yuan per ton of coal, an increase of 29 years.

65 yuan / ton (4.

98%), a drop of 9 yuan / ton (-1.

42%); Yancoal Australia crushed 647 yuan / ton of coal per ton, sometimes up 46.

66 yuan / ton (7.

77%), an increase of 26.

24 yuan / ton (4.

22%); Shaanxi and Mongolian bases crushed 276 tons of coal.

93 yuan / ton, temporarily down 14.

43 yuan / ton (-4.

95%), an increase of 6 from the previous month.

47 yuan / ton (2.

39%).

With the continuation of the clean coal strategy, the company’s coal price efforts are relatively strong.

The cost control effect of Shandong headquarters is good, the profitability of Shaanxi and Mongolian bases has been restored, and the company’s profitability per ton of coal has increased.

The company’s 淡水桑拿网 gross profit per ton of coal in 2019 was 259.

64 yuan / ton, a slight increase of 12.

8 yuan / ton (5.

19%), an increase of 32.

30 yuan / ton (10.

55%).

Gross profit margin per ton of coal 43.

59%, down 1 year.

31 pct, down from the chain.

80

Among them, Shandong headquarters has a gross profit of 367 tons of coal.

20 yuan / ton, a temporary increase of 28.

95 yuan / ton (8.

56%), an increase of 3 from the previous quarter.

89 yuan / ton (1.

07%); gross profit margin 58.

78%, an increase of one year.

94 pct, an increase of 1 from the previous month.

45 pct.

.Coal Australia gross profit of 360 tons of coal.

05 yuan / ton, a temporary increase of 45.

39 yuan / ton (14.

43%), a drop of 15 from the previous month.

36 yuan / ton (-4.

09%), gross profit margin 55.

62%, an increase of 3 a year.

24 pcts, down 4 from the previous month.

82 pct.

Shaanxi and Mongolian base gross coal profit 91.

05 yuan / ton, temporarily downgraded to 75.

66 yuan / ton (-45.

39%); an increase of 27.

92 yuan / ton (9.

54%), gross profit margin 32.

88%, downgrade 24 in one year.

34 pcts, an increase of 9 from the previous month.

54 pct.

Profitability of the company’s methanol business declined in the first quarter.

In the first quarter of 2019, the company’s insulin production increased by 0 every year.

5 announcements (1.

11%) to 45.

7 In nominal terms, sales increase by 1 each year.

6 announcements (3.

60%) to 46.

1 nominal.

The first quarter of methanol integrated formaldehyde 1691.

05 yuan / ton, temporarily down 388.

22 yuan / ton (18.

67%) and the unit production cost is 1204.

42 yuan / ton, temporarily downgraded to 31.

28 yuan / ton (2.

53%); unit gross profit is 486.

63 yuan / ton, sometimes down 356.

85 yuan / ton (42.

31%).

The methanol business achieved revenue in the first quarter7.

80 ppm, a decrease of 1 per year.

4.6 billion (15.

75%); achieve gross profit 2.2.4 billion, down 1 a year.

5.1 billion (40.

24%); gross margin 28.

78%, down 11 a year.

79 pct, profitability improvement alternative.

The company’s two methanol phase II projects with a total capacity of 160 tons / year in Shaanxi and Mongolia are expected to be put into production in the second half of 2019. Under the scale effect of capacity expansion, the profitability of the company’s coal chemical sector is expected to further increase.

The company repaid 78 in the first quarter.

At $ 8.5 billion, the debt rate continued to fall.

As of the end of the first quarter of 2019, the company’s debt budget was earlier than 1187 at the end of 2018.

26 trillion decreased by 94.

2.1 billion to 1093.

05 trillion points, debt ratio by 58.

29% returns 55.

47%; of which interest-bearing debt was 706 at the end of 2018.

42 trillion reduced by 78.

8.5 billion to 627.

5.7 billion, with an interest resistance rate of 34.

68% approved 31.

85%.

The reduction of the company’s debt burden extends the company’s profitability and improves the company’s ability to resist cyclical changes.

Earnings forecast and rating: We expect the EPS in 19, 20, and 21 to be 1, respectively.

75 yuan, 1.

85 yuan, 1.

88 yuan.

At the same time, considering the marginal improvement of production in Shaanxi and Mongolian bases, the realization of the effect of integrated incentives, and the second phase of the methanol project will be put into operation, we maintain the company’s “Buy” rating.

Predicted catalytic factors: The central price of coal continues to rise, the factors of normal production in the southern Shaanxi base ease, and the second-phase methanol project is put into production.

Risk factors: the short-term fluctuation risk of coal prices, the risk of safety in production, and the project under construction is less than expected.