Huaibei Mining (600985) Annual Report 2018 Review: East China Leader Stable Debt 深圳spa会所Optimizing Dividends Considerable
This report reads: East China coking coal faucet is attached with solid solid, new coke production capacity is released, profitability is strong, core businesses have benefited from increased regional concentration, optimized debt structure with high dividend sustainability, and maintained overweight rating.
Investment points: slightly increase profit forecast and target price, and maintain the “overweight” rating.
Taking into account the steady development of coal, coking business, and the decline in interest-based denials, adjust the company for 2019?
The EPS in 2021 is 1.
88 (predicted 2019?
80 yuan, increase 3%, 0%), adjust the target price to 13 according to the performance improvement ratio.
20 yuan, maintaining the “overweight” level.
Capacity is still to be released, benefiting from the continuous increase.
Initial income 546.
8.7 billion increased by 9.
58%, net profit attributable to mother 35.
4.9 billion increased by 23.
08%, deducting non-net profit 35.
89 trillion (report data 12.
66+ profit of business combination under the same control23.
23 ppm), of which major mining assets are profitable24.
09 billion more than 23.
50 billion promises.
The company’s current production capacity is 3605 per year / 2018, and raw coal production is replaced by 2801. 78% of the capacity utilization rate has room for improvement.
If the 20% nuclear reduction capacity of Anhui Mining Deep Clean Mine is reduced by 260 tons, as the East China coking coal leader will not be disturbed, its competitive advantage will be more prominent, and the concentration of high-quality capacity will increase.
Lintong Coking Co., Ltd., which started production in 2016, has a production capacity of 440 tons / year. It is expected that coke sales will be 386 tons, with an average price of 1,937 yuan / ton, an increase of 36% and 19%, and a net profit of 6%.
The company is close to Shandong. The coking business will further benefit from the advancement of Jiyulu Coking’s de-capacity, and the cost control advantage of new capacity will be more obvious.
The debt structure is constantly optimized, and high dividends will be the main theme.
The company’合肥夜网 s operating cash flow increased by 83 in 2018.
2 trillion, total repayment of long and short-term loans.
8 trillion, debt ratio 65.
6% decreased by 6 compared with the same period last year.
3PCT, not more than 27 to be issued.
US $ 5.8 billion in debt, further optimizing the debt structure.
In 2018, the initial dividend is planned to be 0.
5 yuan, corresponding to the current dividend yield of 4.
3%, taking into account the stable operation and the enhancement of the leader, it is expected that the high dividend yield is expected to continue.
Risk warning: coal prices fell more than expected; the Xinhu (Huagoou) coal mine commissioning progress was less than expected.