GUANGHUI ENERGY(600256) 长江证券·2024-11-07 07:31Investment Rating - The investment rating for the company is "Buy" and is maintained [7][9]. Core Views - The company reported a significant decline in revenue and net profit for the first three quarters of 2024, with revenue at 26.391 billion yuan, down 46.76% year-on-year, and net profit at 2.003 billion yuan, down 58.72% year-on-year. The third quarter alone saw revenue of 9.143 billion yuan, a decrease of 36.87%, and net profit of 548 million yuan, down 24.90% [4][5]. - Despite the challenges, the company is experiencing a substantial increase in coal production and sales, with third-quarter coal production rising by 168.67% year-on-year to 11.8863 million tons and sales increasing by 91.05% to 12.8963 million tons [5]. - The company has approved the development of the Marang coal mine, which is expected to significantly enhance production capacity [5]. - The company emphasizes shareholder returns, distributing a cash dividend of 0.7 yuan per share, resulting in a dividend yield of 8.73% based on the closing price of 8.02 yuan on November 4, 2024 [6][9]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved total revenue of 26.391 billion yuan, a decrease of 46.76% year-on-year, and a net profit of 2.003 billion yuan, down 58.72% year-on-year. In Q3, revenue was 9.143 billion yuan, down 36.87%, and net profit was 548 million yuan, down 24.90% [4][5]. - The average price of domestic LNG increased by 19.49% year-on-year to 4823.04 yuan per ton, while the sales volume of natural gas in Q3 was 713,200 tons, down 27.73% year-on-year [4]. Production and Capacity - The company has accelerated the release of high-quality coal production capacity, with the Bai Shihu coal mine's production capacity increased to 35 million tons per year and the Marang No. 1 coal mine approved for a capacity of 10 million tons per year [5]. - The total coal production for the first three quarters reached 21.653 million tons, a year-on-year increase of 32.80%, while coal sales reached 28.6064 million tons, up 24.97% year-on-year [5]. Strategic Developments - The company has entered into a partnership with Xinjiang Shun'an Energy Co., Ltd., transferring 40% of its subsidiary's equity for 2.049 billion yuan, which is expected to expedite the development of the eastern coal mine [6]. - The company has committed to distributing at least 90% of the average annual distributable profits to shareholders from 2022 to 2024, with a guaranteed dividend of 0.70 yuan per share [6]. Earnings Forecast - The expected EPS for 2024, 2025, and 2026 are 0.54 yuan, 0.93 yuan, and 1.10 yuan respectively, with corresponding PE ratios of 14.91X, 8.60X, and 7.27X based on the closing price on November 4, 2024 [7].