Panjiang (600395) Annual Report and First Quarterly Report Comment: Short-term Benefits Coking Coal Price Increase Steady and Long-term Steady Growth, High Dividend

Panjiang (600395) Annual Report and First Quarterly Report Comment: Short-term Benefits Coking Coal Price Increase Steady and Long-term Steady Growth, High Dividend
This report reads: Costs increase, impairment risks are eliminated, and the gradual realization of new production capacity in the future will usher in a steady increase in revenue; the dividend rate is increased to 70%, and the dividend rate is as high as 6.4%, enjoy the growth of high dividends premium, upgrade the level to “overweight”. Investment Highlights: Maintain profit forecast and raise target price to 7.92 yuan, raised to the “overweight” level.Predicting company 2019?EPS is 0 in 2021.66, 0.69, 0.77 yuan, the verified high dividends boosted the valuation, giving the company 12 times PE in 2019, corresponding to a target price of 7.92 yuan, raised the rating to “overweight.” The increase in staff costs dragged down gross profit, and asset impairment shrank sharply.1) The 南京夜网 company’s 2018 revenue and scale net profit were 60.09, 9.450,000 yuan, an increase of 0 in ten years.14%, 7.72%, with net profit slightly below 10.2.6 billion forecasts.2) Gross profit margin of coal sector 33.29%, down by 1 every year.92PCT, of which self-produced clean coal, and the gross profit of the mixed coal are spaced three times respectively.7%, 12.2%, the first is the decline in blended coal prices (345 → 291) and the significant increase in coal employees’ salaries11.88%.3) The company’s 2018 sales, management (including R & D), and financial expense ratios are 0.31%, 10.58%, 1.53%, a slight increase of 0 from 2017.21PCT, profit growth mainly comes from a significant contraction in asset impairment, and the scale is reduced compared to 20172.At 65 ppm, the impact of capacity withdrawal from supply-side reforms has subsided. The effect of coking coal price increase is apparent, and the production capacity is released steadily.In the first quarter of 2019, the company’s net profit attributable to its parent was 16 respectively.44、2.96 ppm, an increase of 10 in ten years.61%, 7.47%, the effect of rising coking coal prices has been reflected, and the gross profit per ton of income has increased by more than 5%.1%, 12.1%.The company currently has a total output of 910 years / year. Jinjia Mine (90 tons / year) has completed 33% of its investment budget by the end of 2018. It is expected to start production in 2019.Yijing (240 lbs / year) is expected to start production in 2020 and 2022. If the project progresses smoothly, the capacity growth in 2019, 2020, and 2022 will be 10%, 9%, and 22%, respectively. Dividends are attractive.Company 2016?Dividends for 2018 are zero.24/0.35/0.40 yuan, the dividend rate of 200% / 66% / 70% presented a trend, the current price corresponding static / dynamic index rate is as high as 6.4% / 7.3%, leading in the sector.The absolute regional leader advantage of the merged company, we believe that the dividend rate will be maintained, and the value of medium and long-term investment will be prominent. Risk reminder: coal prices fall more than expected; the project puts into operation less than expected.