CSEC,China Shenhua(601088) 民生证券·2025-04-27 01:20Investment Rating - The report maintains a "Recommended" rating for the company [8][11]. Core Views - The company's performance in Q1 2025 shows stable operations, with enhanced profitability in the coal business despite a decline in revenue and net profit [3][4][5]. - The acquisition of Hanjin Energy has been integrated into the company's financials, contributing to coal sales volume growth [4][6]. - The company is expected to continue benefiting from the injection of quality coal assets from the National Energy Group [6][11]. Financial Performance Summary - In Q1 2025, the company achieved operating revenue of 69.585 billion yuan, a year-on-year decrease of 21.1%, and a net profit attributable to shareholders of 11.949 billion yuan, down 18.0% year-on-year [3][4]. - The coal production volume was 82.5 million tons, a decrease of 1.1% year-on-year, while coal sales volume dropped by 15.3% to 99.3 million tons [5][10]. - The average selling price of coal was 506 yuan per ton, down 11.5% year-on-year, with a coal business gross margin of 30.1%, an increase of 1.2 percentage points [5][7]. Future Earnings Forecast - The company forecasts net profits attributable to shareholders of 55.102 billion yuan in 2025, with expected earnings per share (EPS) of 2.77 yuan [11][12]. - Revenue is projected to decline slightly in 2025, with a forecast of 330.7 billion yuan, followed by a recovery in subsequent years [12][14]. Operational Highlights - The company’s total power generation in Q1 2025 was 50.42 billion kWh, a decrease of 10.7% year-on-year, with a total installed capacity of 47,505 MW [7][10]. - The transportation business saw a decline in volume and profitability, with self-owned railway turnover down 11.6% year-on-year [10][11]. - The company is advancing the construction of new coal mines, which are expected to enhance future production capacity [6][11].