Investment Rating - The investment rating for the company is "Buy" [2] Core Views - The company is a leading coal-electricity integrated enterprise in Shaanxi Province, with a strong growth trajectory in both coal and electricity sectors. It has a stable high dividend rate of over 50% and is expected to enjoy valuation premiums due to its integrated business model [6][15] - The company is projected to achieve a net profit of 2.96 billion, 3.32 billion, and 3.72 billion yuan for the years 2024, 2025, and 2026 respectively, with year-on-year growth rates of 15.7%, 12.2%, and 11.9% [6] Summary by Sections Company Overview - The company was established in September 2003 and restructured into a joint-stock company in September 2019. It is controlled by the Shaanxi Provincial State-owned Assets Supervision and Administration Commission, with over 80% of its shares held by state-owned entities [15][16] - The company has a total installed capacity of 11,230 MW and a coal production capacity of 30 million tons per year, positioning it as a key player in the coal-electricity conversion in Shaanxi Province [15][16] Coal Business - The company has a coal production capacity of 30 million tons per year, with 24 million tons currently in operation. The Zhao Shipan coal mine, with a capacity of 6 million tons per year, is expected to start operations in November 2025 [7][39] - The company is actively pursuing both internal and external growth opportunities, including the approval of the Zhangba coal mine (4 million tons/year) and the acquisition of the Qianyangshan coal mine (8 million tons/year) [7][39] - The internal sales of coal have significantly increased, with the proportion of internal sales rising from 11.7% in 2018 to 68.2% in 2023, enhancing the company's profitability [43][52] Electricity Business - The electricity business is in a high growth phase, with a planned increase in installed capacity of over 50%. The company has four power plants under construction, expected to be operational by 2026 [8][29] - The company benefits from a coal-electricity integration strategy, with a significant portion of its coal sourced from its own mines, leading to lower costs and improved profitability [8][44] - The electricity business contributed 76% of the company's revenue in 2023, with a significant increase in both revenue and gross profit over the past five years [27][30] Financial Summary and Valuation Indicators - The company's revenue is projected to grow from 19.45 billion yuan in 2023 to 24.44 billion yuan in 2026, with a compound annual growth rate (CAGR) of 5.7% [10] - The net profit is expected to increase from 2.56 billion yuan in 2023 to 3.72 billion yuan in 2026, reflecting a strong growth trajectory [10] - The company's earnings per share (EPS) are projected to rise from 0.68 yuan in 2023 to 0.99 yuan in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 13.4 to 9.2 [10]
陕西能源：公司首次覆盖报告：高度煤电一体化布局，煤炭和电力比翼高成长-20250226