Shanxi Coking (600740) 2018 Annual Report Performance Comment: China Coal Huajin’s large investment income caused a 15% increase in profits
Long-term equity investment caused a sharp increase in the value of Shanxi Coking’s net profit by 1,567.
38% Shanxi Coking (600740) announced the 2018 annual report on the evening of the 15th, and the report stated that the company achieved operating income of 72.
29 ppm, an increase of 20 in ten years.
58%; Net profit attributable to shareholders of listed companies15.
33 ppm, an increase of 1567 per year.
38%; deduct non-net profit 12.
0.94 million yuan, an increase of 1152 in ten years.
37%; Yield 1.
21 yuan, the expected average return on net assets is 21.
The company achieved operating income in the fourth quarter.
26 ppm, a ten-year increase of 8.
44%; net profit attributable to shareholders of the parent company2.
450,000 yuan, an increase of 514 in ten years.
A cash dividend of 2 yuan (including tax) is to be distributed for every 10 shares.
China Coal Huajin’s equity investment thickened the company’s performance report at one time, and the company purchased a total of 394 raw coal.
For the first time 64, the purchase price was 1216.
16 yuan; coal tar 18.
Initially, the purchase price was 3065-4038 yuan;都市夜網 crude benzene 7.
16 For the first time, the purchase price is between 4294 yuan and 5592 yuan.
In terms of different products, the production of coke (wet basis) was 300.
38%, sales of coke 299.
68 digits, +5.
93%; production of methanol 19.
54% sold methanol 19.
Due to the company’s routine production shutdown and maintenance, the production of carbon black, tar, crude benzene and other products decreased.
Report that the core company produces carbon black 5.
57 baseline, -15.
48%, selling carbon black 5.
68 for the first time; processed anhydrous tar 25.
83 ,, -14.
33%; processed crude benzene 10.
34 ,, -5.48%.
The main products of the major companies reported rising and falling quality, with asphalt increasing by +4.
7%, industrial naphthalene +31.
15%, 南京桑拿網 carbon black +14.
49%, coking benzene-0.
Maintaining stable downstream demand is the main factor for the company’s operating income to maintain steady growth.
In addition, the company’s 18-year net profit surged 15 times each year, mainly because the company completed the acquisition of 49% equity of Shanxi Zhongmei Huajin Energy Co., Ltd. in 18 years, and realized investment income of 11 that year.
US $ 1.6 billion, significantly increasing the company’s performance. Excluding the large amount of non-operating income caused by China Coal Huajin’s equity investment income and adjustment of investment costs, the company still exceeded 80% of profit growth that year.
Reported that the company’s overall gross profit margin rose 2.
09pct to 11.
37%, the expense ratio increased by 1.
At 04pct, the net profit margin was significantly affected by the substantial returns brought by China Coal Huajin’s equity investment19.
26 points to 20.
The company’s acquisition of China Coal Huajin has significantly improved the company’s net profit level. Although the one-time shock effect dissipated in 19 years, there is still room for improvement in the long-term.
Investment Strategy Shanxi Coking, as the coke leader in Shanxi Province, has a complete coal coking industrial chain including coke, coal tar, benzene processing, and methanol.
The company has obvious geographical advantages. It is located in the main coking coal production area upstream, and has certain advantages in procurement. In the downstream Hebei steel province, the demand side has the advantage of near-water platforms.
With the recovery of downstream steel demand in the past two years, the price of coke has continued to rise. As a leader in the coke industry, the company has benefited significantly.
In the initial period, the company acquired 49% equity of China Coal Huajin, and the industrial chain extended upward. China Coal Huajin’s coking coal is of good quality and has a large profit space, which promotes the company’s profitability.
We are optimistic about the company as the leading part of the coke industry, high-quality coking coal assets in the future to improve the company’s profitability, and as the major state-owned enterprises in Shanxi Province in the future state reform expectations, we recommend that we pay attention.
Risk warning: policy risks, coal prices fall faster than expected