SLSVC(600123) 海通证券·2024-08-16 11:08Investment Rating - The report assigns an "Outperform" rating to the company, indicating a positive outlook for its stock performance [1] Core Views - The company is a leading producer of high-quality anthracite coal in Shanxi Province, with a well-established coal-chemical integration strategy that enhances its competitive advantage [5] - The coal business is expected to see volume growth and stable prices, supported by increasing production capacity and high-quality resources [5] - The coal-chemical integration and strong brand recognition in urea and caprolactam products are expected to drive profit improvements [5] - The company has a healthy asset structure and has initiated quarterly dividends, reflecting confidence in future growth [6] Company Overview - The company is the first listed coal enterprise in Shanxi Province, with a diversified business model integrating coal, chemical, and fertilizer industries [13] - It operates in the Qinshui Coalfield, the largest anthracite coal base in China, with significant resource reserves [13] - The company has a total coal production capacity of 19.9 million tons, including 14.1 million tons of in-production capacity and 4 million tons of equity capacity [13] - The company's "Lanhua" brand anthracite coal is known for its high calorific value, mechanical strength, and low ash and sulfur content [13] Coal Business - The company's coal production capacity is 19.9 million tons, with 14.1 million tons of in-production capacity and 4 million tons of equity capacity [23] - Coal production increased by 20% in 2023, with a capacity utilization rate of 98% [27] - The company's coal sales reached 12.99 million tons in 2023, with anthracite accounting for 74.7% of total sales [31] - The average selling price of coal in 2023 was 740 yuan/ton, while the production cost remained stable at around 250-290 yuan/ton [33] Coal-Chemical Integration - The company has a urea production capacity of 1 million tons, with actual production of 967,800 tons in 2023 [42] - Urea sales increased by 19% in 2023, driven by rising demand and falling coal prices [44] - The company's caprolactam production capacity is 140,000 tons, with actual production of 101,000 tons in 2023 [57] - Caprolactam sales decreased by 19.63% in 2023 due to weak market demand [58] Financial Performance - The company's revenue in 2023 was 13.28 billion yuan, a decrease of 6.2% year-on-year, while net profit was 2.098 billion yuan, a decrease of 34.9% year-on-year [22] - The company's gross margin in 2023 was 41.7%, down from 54.5% in 2022 [7] - The company's operating cash flow in 2023 was 2.673 billion yuan, a decrease of 53.1% year-on-year [64] Dividend Policy - The company has a dividend policy that ensures cash dividends of no less than 30% of the annual net profit attributable to shareholders [6] - In 2023, the company distributed a total of 1.42 billion yuan in dividends, with a dividend payout ratio of 53.1% [6]