Jiantou Energy (000600): Coal price declines in cooperation with sales revenue growth The company’s first half performance recorded a significant improvement in several years

Event description The company disclosed the 2019 semi-annual results preview: the company is expected to realize a net profit attributable to shareholders of listed companies of approximately 39,100 from January 1, 2019 to June 30, 2019.

One million yuan, an increase of about 107 in ten years.

51%.

Incident Comment The downward expansion of coal prices has increased the sales volume, and the company’s first half performance has achieved significant improvements several times.

Since 2019, the growth rate of power demand has accelerated. As a result, the utilization hours of Hebei thermal power have increased. From January to May, the utilization hours of Hebei thermal 杭州夜网 power were 2021 hours, which was basically the same as the 2015 hours of the same period of the previous year.Achieved higher growth.

The company’s performance in the first half of the decade significantly increased by approximately 107.

51%, the company announced that the significant increase in the first half of the year ‘s performance was mainly due to the decline in coal prices and the increase in sales. 1, the decline in coal prices since the beginning of the year has been significant.For 470.

58 yuan / ton and 500 yuan.

41 yuan / ton, a reduction of 27 each year.

36 yuan / ton and 23.

85 yuan / ton, the decline reached 5 respectively.

49% and 4.

55%; 2. Through the increase of the company’s unit heating capacity and supply area heating demand, the company’s supply to achieve greater growth, which translates into a role to boost the company’s performance.

The Group’s asset injection plan continues to advance, and the company’s equity installed capacity is expected to expand again.

In March 2019, the company issued a summary of the report on the purchase of assets by issuing shares, and plans to issue shares to the controlling shareholder Jiantou Group to purchase 45% of its shares in Zhanghewan and 40% of its shares in Qinre.

At present, the company has responded in detail to the “Notice of Feedback of Administrative Licensing Project Review” issued by the CSRC.

Based on the company’s equity installed capacity of 8.32 million kilowatts at the end of 2018, the company’s equity installed capacity will increase by 8 after completion of the acquisition.

5%, continuous injection of high-quality assets is expected to increase the company’s performance.

The improvement rate lowers the expected consolidated coal price and the company’s performance improvement is expected to accelerate.

Decreasing the minimum tax rate can reduce the company’s tax and fee burden and recognize more revenue; confirming that under the market-oriented environment of coal prices, the company’s cost has theoretically reached a limited increase.

Under the current trend of macroeconomic growth under pressure, we are optimistic about the decline of the coal price hub and the tax reform dividend to accelerate the improvement of the company’s performance and transformation.

Investment recommendations and estimates: According to the company’s latest announcement, we adjust the company’s profit forecast, and the company’s 2019-2021 EPS is expected to be 0.

50 yuan, 0.

69 yuan and 0.

80 yuan, corresponding to PE is 13.

00 times, 9.

41 times and 8.

11 times, maintain the company’s “Buy” rating.

Risk Warning: 1.

Risk of deterioration of power supply and demand environment; non-additive growth risk of coal prices; 2.

The advancement of the asset injection plan did not meet 深圳spa会所 the expected risks.