Shanxi Coking (600740): Coking’s main business drags down performance Huajin contributes considerable investment income

Event: On August 19, 2019, the company released a semi-annual report, reporting that the two companies realized operating income of 34.

4.0 billion, down 2 every year.

98%, realized net profit attributable to mother 7.

67 ppm, a decrease of 6 per year.

98%, net profit after deduction is 7.

870,000 yuan, an increase of 19 in ten years.

6%.

Ping Hua’s promotion continued to contribute considerable investment income, and the coking business dragged down the performance: the company achieved net profit attributable to its mother in the first half of the year.

67 ppm, a decrease of 6 per year.

98% during the period, the company recognized the investment income of China Coal Huajin.

30,000 yuan, that is, operating profit increased by 11.

30,000 yuan.

In the first half of the year, the company’s main business decreased, and its main business gross profit margin was -10.

8% dragged down the release of performance.

In the second quarter, the net profit attributable to the mother for the second quarter was 2.

95 ‰, a decrease of 39 per year.

6%, a drop of 37 from the previous month.

7%.

Net investment income in the second quarter was 4.

6.8 billion, down 26.

4%.

In the first half of the year, the amount of coke was reduced, and the cost increased significantly: due to environmental protection and production restrictions, the company’s coke output decreased by 8 in the first half.

7% to 140.

2 nominal, sales fell 8.

5% to 141 budget.

The ton of pyroformaldehyde is 1661.

51 yuan / ton, an increase of 2 in ten years.

55%.

The amount of raw coal purchased was 184.

In May, it fell by 14 each year.

3%, the purchase price is 1229.

4 yuan / ton, up 13 before.

09%.

In the single quarter, the company produced coke 79 in the second quarter.

1 Initially, it decreases by 5 per year.

92%, an increase of 29 from the previous month.

49%; sales of coke 77.

9 initially, down 4 each year.07%, an increase of 23 from the previous month.

31%.

The ton of pyroformaldehyde is 1664.

8 yuan / ton, up 5 before.

07%, down from the previous month.

44%.

The purchase volume of raw coal in the second quarter was 184.

5 Initially, the annual decline is 14.

3%, an increase of 20 from the previous month.

67%, the purchase price is 1241.

5 yuan / ton, temporarily increased by 13.

1%, an increase of 2 from the previous month.

2%.

Decline in the price of chemical products: The price of the company’s chemical products fell in the first half of the year, of which the price of pure benzene fell the most, with a 北京夜网 decline of more than 32.

2% to 3624.

6 yuan / ton, followed by methanol, the price dropped by 18 year-on-year.

5% to 1772.

1 yuan / ton; carbon black price is 4720.

4 yuan / ton, down 17 previously.

3%; asphalt in the first half of the year was 3,097.

9 yuan / ton decreased by 5 year-on-year.

5%; industrial naphthalene formaldehyde is 3572.

2 yuan / ton, down 4 before.

1%.

Investment suggestion: It is expected that the company’s net profit attributable to its parent in 2019-2021 will be 16.

93/17.

12/17.

3.3 billion yuan, corresponding to EPS of 1.

12/1.

13/1.

14 yuan / share.

Considering that the overall prosperity of the coal sector has picked up, and the company’s overall estimate is at a low level, it is given a “Buy-A” rating with a 6-month target price of 11.

20 yuan, corresponding to 10 times PE.

Risk warning: coke prices have fallen sharply, coking coal prices have risen less than expected, and investment income has exceeded expectations.