China Coal Energy (601898) Company Express: Impairment Affects Performance, Releases Coal, Centralized Production Capacity
Event: On March 15, 2019, the company released its 2018 annual report, which reported that the company realized operating income of 1041.
40,000 yuan, an increase of 27 in ten years.
8%; net profit attributable to mother 34.
35 ppm, an increase of 49 in ten years.
9%; budget benefit 0.
Comment on the fourth quarter performance report loss: In the fourth quarter of 2018, the company achieved revenue of 270.
30,000 yuan, an increase of 0 from the previous month.
28%, an increase of 25 a year.
Achieved operating costs of 199.
7.2 billion, an increase of 2 from the previous month.
98%, an increase of 26 a year.
However, the substantial increase in management expenses and accrual of asset impairment losses led to a decrease in four quarters.
Management expenses incurred in the fourth quarter14.
19 trillion, an increase of 55.
78%, an increase of 14 a year.
In the fourth quarter, the impairment of assets was accrued10.
70 ppm, long-term gradual accrual of asset impairment losses.
0.6 billion, a decrease of 8 from 2017.
The volume and price of coal business rose at the same time, and the increase in the volume of buyout trade coal reduced the gross profit margin: in 2018, the company achieved a 7713 increase in commercial coal production, an increase of 2.
Achieve commercial coal sales1.
5.6 billion tons, an annual increase of 21.
3%, of which 7667 are self-produced coal, which is expected to grow by 2 per year.
2%, buyout trade coal 8360 each year, an annual increase of 54.
In terms of price, in 2018, the company’s comprehensive replacement of coal assets was 508 yuan / ton, with an additional 杭州桑拿网 value of 15 yuan / ton or 3%, and the buyout of trade coal meal was 497 yuan / ton, with each increase of 2 yuan / ton or 0.
In terms of cost, the unit’s unit sales cost of self-produced commercial coal in 2018 was 217.
73 yuan / ton, a decrease of 6 from 2017.
77 yuan / ton or 3.
0%, buyout trade coal unit cost of sales 467.
45 yuan / ton, an increase of 4 over 2017.
07 yuan / ton or 0.9%.
As the cost of trade coal increased faster than the highest incremental growth and trade volume was maximized, and the gross profit margin of the coal business was 34 in 2017.
1% down 3.
6 up to 30.
Reaching a record high output and increasing raw material costs: According to the announcement, due to the commissioning of the Mengda Engineering Plastics Project and the overhaul of the Shaanxi Company during the same period last year, the replacement production and sales volume hit a record high, gradually replacing 146 in 2018.
7 Initially, it grows by 50 per year.
2%, of which polyethylene sales were 74.
4 Initially, higher than the increase of 48.
8%, polypropylene sales 72.
3 for the first time, higher than the increase of 51.
Sale of urea 192.
In September, it fell by 15 each year.
8%, selling methanol 7.
5 Initially, the annual decline is 43.
In terms of price, the price of urea rose by 26% to 1819 yuan / ton, the largest increase; the price increased by 5.
3% to 8086 yuan / ton, of which the price of polyethylene is relatively stable, increasing by only 1.
At 4%, the increase in polypropylene prices broke through, increasing by 10% annually to 7,988 Mt / t.
Methanol formaldehyde increased by 9% to 2342 yuan / ton.
Due to the substantial increase in raw material costs, the gross profit margin of the coal chemical business decreased. The gross profit margin of the coal chemical segment in 2018 was 24.
4%, a decline of 3 per year.
25 But without reducing the increase in production and sales and the price of coal chemical products.
1% to 43.
Coal machine business rebounded and profit margin increased: Benefiting from the recovery of coal prices, the investment in fixed assets in the coal industry rebounded, and the company’s coal machine business revenue increased.
6% to 70.
US $ 5.2 billion, reporting a gross profit of 10 for the continuous coal machine business.
670,000 yuan, an increase of 26 in ten years.
6%; gross margin is 15.
1%, an increase of 0 from 2017.
In 2019, coal and electricity production capacity will be put into operation, and profits are expected to continue to strengthen: According to the announcement, the company ‘s new coal mine parent Du Chai Deng (600 tons / year) and Nalinhe No. 2 coal mine (800 tons / year) have officially started production in November 2018., Contributing about 150 production that year, it is expected to reach production in 2019; Xiaohuigou (300 tons / year) will be put into production within the year; the company’s coal output in 2019 will increase by more than 1200, an increase of 15%.
In addition, the company expects that the production capacity of Dahaize Coal Mine, which has a capacity of 1,500 tons / year, has also been approved, and there is still room for future production.
In terms of power, Shanghai Energy 2 × 350MW Thermal Power Project Unit 1 was successfully put into operation, Pingshuo Company ‘s 2 × 660MW low-calorie coal power generation project, Xinjiang Zhundong Wucaiwan 2 × 660MW Beier Power Plant project has been steadily progressing, and is expected to be completed in 2019.Put into production.
Investment suggestion: overweight -A grade.
It is expected that the company’s net profit attributable to its mother for 2019-2021 will be 55.41/63.
10 trillion, equivalent to 0 respectively.
The company currently estimates a budget with a 6-month target price of 5.
Risk warning: The macroeconomic downturn, coal prices have fallen sharply, and the company’s new production capacity has fallen short of expectations.