China Shenhua (601088): Deduct non-net profit to maintain growth and integrate the entire industrial chain to stabilize operations
China Shenhua’s 18-year deduction of non-net profit also increased by 2.
1% China Shenhua (601857) announced the 2018 annual report on the evening of the 23rd, and the company realized operating income of 2641.
1.0 billion, an annual increase of 6.
2%, net profit attributable to shareholders of listed companies 438.
670,000 yuan, a year-on-year decrease of 2.
6%; deduct non-profit 460.
65 ppm, a 10-year increase2.
1%; basic profit return 2.
205 yuan, deducting the unexpected income 2.
316 yuan, expected average return on net assets of 13.
The fourth quarter achieved operating income of 700.
1.7 billion, an annual increase of 5.
75%, net profit attributable to shareholders of the parent company is 85.
8.9 billion, down 8 a year.
Proposed distribution of RMB 0.
88 yuan (including tax) deducts non-net profit and maintains growth. The integration of the entire industrial chain is stable and operating. Under the influence of the company’s high base, the company’s revenue growth rate and net profit have decreased.Impact, deducting non-net profit actually increased 2.
The company’s overall gross profit margin fell by 0.
20pct to 41.
12%, the company’s overall expense ratio fell by 1.
05pct, the expense ratio rose by 0.
09pct, net interest rate fell by 1.
27 points to 20.
Sub-coal board: Reported coal realized income of 2051.
91 ppm, a ten-year increase4.
Coal sales were 460.
9 million tons, +3.
9%; average selling price of coal is 429 yuan / ton, +0.
The company ‘s Shenbao and Shendong mining areas stabilized and increased production, and the company ‘s own coal production rose by 0.
4% to 296.
6 million tons, the cost of self-produced coal 113.
4 yuan / ton, +4.
5%; gross margin decreased by 2.5pct to 28.
In the future, the production progress of Haerwusu, Baorixile and other mining areas will be promoted. Other mining areas will gradually increase production capacity instead 深圳桑拿网 of increasing production capacity. The company’s self-produced coal output will increase, providing the company’s profit space. Power generation business: Power generation business achieved 884.
5.2 billion, +11.
Achieve electricity sales of 267.
59 billion kWh, +8.
7%; average electricity price is 318 yuan / MWh, + 1.
The fastest increase in the electricity consumption of the whole society, coupled with the policy level leading to the decline in coal prices, the cost of the power generation business segment fell, and gross profit rose.
7pct to 22.
Transportation business and coal chemical business: Reported increased coal sales and rail turnover +4.
0%, income +4.
2%, gross profit is reduced by 1.
4pct; the amount of coal in the port is +4.
6%, income +7.
1%, gross profit dropped by 5.
5pct; expected freight volume +11.
4%, ten-year turnover +11.
8%, income +25.
9%, gross profit -2.
In the coal chemical industry, polyethylene sales were -2.
8%, polypropylene sales -3.
6%, income +2.
8%, gross profit +4.
Investment strategy China Shenhua, as the largest domestic listed coal company, integrates the entire industrial chain layout of coal, power generation, ports, tons, and coal-chemical integration. Coal, power generation and transportation have become the three pillars of the company’s performance.
The company has a cost advantage, has an integrated operating advantage and scale effect in the industry, and significantly enhances the company’s ability to resist drift and risk.
In the context of supply-side reforms, with the rapid replacement of advanced production capacity, the company is expected to continue to benefit from the favorable policies brought by the release of advanced production capacity, further consolidating Shenhua’s leadership in the coal industry.
The company’s dividend policy is relatively stable, and the estimation is relatively inaccurate. As the state-owned enterprise reform continues to advance, it deserves long-term attention in the coal sector.
Risk reminder: Macroeconomic downturn, coal prices fall sharply