Xinji Energy (601918)： Coal and power businesses are depreciating assets and affecting performance release
Xinji Energy (601918): Coal and power businesses are depreciating assets and affecting performance release
Event: On March 21, 2019, the company announced its 2018 annual report, which stated that the company realized operating income of 87.
50 ppm, a ten-year increase of 17.
18%; net profit attributable to shareholders of the listed company.
610,000 yuan, an increase of 1080 in ten years.
Opinion The fourth quarter performance reported a loss, mainly due to the impairment of large assets: According to the annual report data, the company’s net profit in the fourth quarter was -6.
47 trillion, resulting in an expected initial provision of 8.
15 million assets impairment loss, which is mainly the asset impairment caused by the withdrawal of the Yangzhuang Mine production capacity under construction.
In the fourth quarter, the company’s net profit excluding asset impairment was approximately 1.
About 700 million, an increase of 19%.
Significant cost reduction and efficiency enhancement, and profitability of coal business improved: According to the announcement, the company produced 1520 commercial coal in 2018.
01 for the first time, higher than the increase of 13.
99%; sales of commercial coal reached 1500.
25, an annual increase of 14.
12%. The first recovery of production and sales was the resumption of Xinji No. 1 Mine.
The comprehensive purity of commercial coal is 374.
37 yuan / ton, an increase of 1 in ten years.
09%, the coal business achieved a gross profit margin of 53.
96%, an increase of 3 over the same period last year.
The efficiency of power units has increased, and the volume and price of power business have risen: According to the announcement, the company achieved 104 thermal power generation in 2018.
7.7 billion kWh, an increase of 7 in ten years.
83%, sales of 99.
8 billion kWh, an increase of 7 in ten years.
The substantial increase in power generation is initially due to the improvement of the company’s unit efficiency. In 2018, the number of power generation hours increased by 380 degrees.
88 hours to 5238.
28 hours, 877 hours above the national average.
The company’s on-grid electricity price in 2018 was 313.
11 yuan /杭州桑拿网 MWh, an increase of 3 over the same period last year.
88%, achieving a gross profit margin of 19.
61%, an increase of 2 from 2017.
Banji Mine resumes construction with endogenous growth expectations: According to the announcement, the company Banji Mine (300 pieces / year) has officially resumed construction on October 16, 2018, with an expected construction period of 25.
Seven months is expected to begin production in early 2021.
Investment suggestion: Overweight-A investment rating, 6-month target price of 4.
We estimate that the company’s net profit attributable to mothers for 2019-2021 will be 10 respectively.7.5 billion, 10.
9.7 billion, 11.
55 ppm, corresponding EPS is 0.
Risk reminder: coal prices fall sharply, demand increases, and power generation decreases