Panjiang Co., Ltd. (600395): Improved performance, increased industrial concentration in the province

Panjiang Co., Ltd. (600395): Improved performance, increased industrial concentration in the province
Event: On April 19, 2019, the company released its 2018 annual report and first quarterly report. In 2018, it achieved a total operating income of 60.8.98 million yuan, an increase of 0 in ten years.14%; realize net profit attributable to shareholders of listed companies.45 ppm, a ten-year increase of 7.72%.Realized operating income in the first quarter of 201916.44 ppm, an increase of 10 in ten years.61%; Net profit attributable to shareholders of listed companies.96 ppm, a ten-year increase of 7.47%. Comment on 2018 coal business volume increase and price reduction: In 2018, the company produced raw coal 杭州桑拿 869.46 Initially, it is increased by 4 per year.96%, of which 681 are commercial coal.9 Initially, increase by 1 every year.19%; sales of commercial coal 739.07 Initial (including outsourced commercial coal 64.02 for the first time), increasing by 2 every year.68%; 383 of which are clean coal.36 inches, falling by 1 every year.44% sold 355 blended coal.Initially, it increased by 8 every year.32%.According to the announcement, the comprehensive index of commercial coal was 785.28 yuan / ton, down by 2 every year.58%, of which fine coal tungsten carbide 1243.59 yuan / ton, an annual increase of 3.37%; Blended coal formaldehyde 291.6 yuan / ton, down 14 before.66%.In terms of cost, the total cost of sales was 522.14 yuan / ton, increasing by 0 every year.2%, of which the sale cost of clean coal is 836.73 yuan / ton, an increase of 6 per year.39%, blended coal sales cost 183.22 yuan / ton, down 11 before.twenty two%.Taken together, the gross profit margin of the coal business is 33.51%, down by 1 every year.92 units. It is proposed to distribute a cash dividend of 4 yuan for every 10 shares and a dividend payment rate of 70.06%: The company always maintains a high dividend. According to the announcement, the company plans to distribute a cash dividend of 4 yuan for every 10 shares, for a total dividend of 6.6.200 million yuan, dividend payout ratio of 70.06%, using the market value of April 19 to calculate the return rate 6.37%, a high level in the industry. In the first quarter of 2019, the volume and price of coal business rose, and profitability increased: in the first quarter of 2019, raw coal production was 181.97 for the first time, increasing by 8 each year.44% sold 195 coal.25 initially, increasing by 5 per year.51%.Comprehensive coal formaldehyde 811.65 yuan / ton, an increase of 5 per year.13%; cost of sales is 519.25 yuan / ton, an increase of 1 in ten years.59%.Coal business achieved gross profit margin of 36.03%, an increase of 2 a year.23 units. The company’s growth potential is yet to be released: According to the announcement, the first phase of the Faer Mine (90 tons / year) strives to be completed and put into operation in 2020; the Ma Yixi No. 1 well (240 tons / ton) strives to be completed and put into operation in 2022. Resource integration in the province and industrial concentration increased: In July 2018, the Guizhou Provincial Government approved the company’s shareholders to set up Panjiang Coal and Electricity Group to integrate the province’s coal resources. After Liuzhi Industry and Mine, Shuicheng Group’s debt-to-equity swap will be completed.Jiangmei Power Group, the company promotes benefits from the increase in industrial concentration in the province. Investment suggestion: Give an overweight-A investment rating with a 6-month target price of 7.20 yuan, equivalent to 12 times the price-earnings ratio.We expect the company’s net profit for 2019-2021 to be 9 respectively.890,000 yuan, 10.1.7 billion yuan, 10.57 trillion, EPS is 0.60/0.61/0.64 yuan / share. Risk warning: coal price drops sharply; new capacity construction does not meet expectations; production fails to meet expectations