pingmei coal(601666) GOLDEN SUN SECURITIES·2025-04-29 03:04Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company reported a significant decline in revenue and net profit for Q1 2025, with revenue at 5.4 billion yuan, down 34.69% year-on-year, and net profit at 152 million yuan, down 79.50% year-on-year [1][2] - The company is focusing on cost optimization to mitigate the impact of declining coal prices, with successful implementation of underground filling mining technology and a reduction in coal production costs by 22 yuan per ton [3][4] - The company has made strategic acquisitions, including a 60% stake in a coal company for approximately 660 million yuan, and has secured exploration rights for a significant coal mine in Xinjiang [3] Financial Summary - The company's projected financial performance shows a decline in revenue from 31.63 billion yuan in 2023 to an estimated 24.42 billion yuan in 2025, with a year-on-year growth rate of -19.3% [4] - The net profit is expected to drop sharply to 702 million yuan in 2025, reflecting a year-on-year decrease of 70.1% [4] - The earnings per share (EPS) is projected to be 0.28 yuan in 2025, significantly lower than 1.62 yuan in 2023 [4] - The company’s return on equity (ROE) is expected to decline to 2.6% in 2025 from 15.0% in 2023 [4] Operational Highlights - The company achieved a raw coal production of 7.5 million tons in Q1 2025, an increase of 13.1% year-on-year, while the sales volume of commercial coal decreased by 8.6% year-on-year [8] - The average selling price of commercial coal in Q1 2025 was 763 yuan per ton, down 34.0% year-on-year, while the comprehensive cost was 616 yuan per ton, down 26.1% year-on-year [8] - The company has a resource reserve of nearly 3 billion tons, with a focus on high-quality coking coal, which is in high demand in the market [8]