Shenhua, China (601088): April coal production is basically stable, comparable calorific charge releases are up slightly from the previous month
The coal output in the previous April was basically stable. The decline in sales in April was mainly affected by the postponement of the settlement. The company released its April 2019 operating data announcement. The company’s commercial coal output in April was close to 2390, only slightly reduced by 0.
At 4%, the maximum value of commercial coal production in the first four months was 9,540, which fell slightly by one year.
7%, yield performance was better than expected.
The company’s April coal sales volume reached a maximum of 1,870, a decline of 2410 digits or 56.
3%, and the company ‘s coal sales and shipments increased by about 7% each year in April, of which about 1960 was the amount of commercial coal shipped but not yet settled, mainly due to: (1) the new replacement rate was adopted from AprilAdjusted and communicated the settlement price with some customers, and postponed the settlement; (2) In April last year, the coal sales volume base for settlement was higher.
Excluding the impact of settlement factors, coal sales in April actually fell by about 11%.
The amount of electricity issued in April rose slightly from the previous month.
8% and 0.
9% According to the company’s announcement, the company completed a joint venture with Guodian on January 31, 2019, and the company’s capital contribution will no longer be consolidated in the scope of the consolidated financial statements.
From a comparable perspective, the company’s April power sales were 110.
400 million kilowatt-hours (+0.
8%) and 103.
400 million kilowatt-hours (+0.
9%), a slight increase from the previous quarter.
In April, the turnover of the transportation sector and the sales volume of coal chemical products continued to increase: the company’s own railway transportation turnover in April was 25.2 billion kilometers, which increased by 7.
At 7%, the cumulative turnover in the first four months was 93 billion ton-kilometres, an increase of 1 per year.
The four-month expected freight volume is 920 years, an increase of 2.
2%, the cumulative freight volume in the first four months was around 3560, an increase of 5 per year.
Coal Chemical Industry: In April, the company sold 2 polyethylene and 无锡夜网 polypropylene.
8 digits (at least +61.
3%, the lowest base in the same period last year) and 2.
7 digits (+3 per year.
The sales volume of polyethylene and polypropylene in the first four months were 12 respectively.
3 points (at least +12.
8%) and 11.
8 digits (+9 per year.
The profit forecast and investment recommendations follow Chinese corporate accounting standards. The company’s EPS is expected to be 2 in 2019-2021.
22 and 2.
22 yuan, corresponding to the dynamic PE of A shares for 2019-2021 is 8 respectively.
50 times, 8.
45 times and 8.
After the supply-side reform, the basic balance of supply and demand in the coal industry will be maintained in the next few years, and the company will merge the leading positions of the industry. The integrated business 杭州桑拿网 model will continue to increase the proportion of contracts with the CMAA, and the stability of profit will also be higher.The policy is stable (except for large special dividends in 2016, the company’s normal dividend ratio has remained at about 40% in the past 10 years), and we believe that the company has room for repair.We continue our view of the company’s 1 quarterly report on April 29 and maintain the reasonable value of A shares26.
5 yuan / share, H shares have a reasonable value of 24.
7 sintering / share is unchanged, corresponding to 19 years PE of A shares is 12.
0 times, the 19-year PE of H shares is 9.
1x, maintain “Buy” rating on the company’s A and H shares.
Risk warning: The macroeconomic growth rate is higher than expected, downstream demand is lower than expected, coal and major product prices have fallen more than expected, and electricity prices have been lowered.