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China Shenhua (601088): Transportation sector boosts gross profit and integrates solid business performance

China Shenhua’s net profit attributable to mothers increased by 5 in the first half of 19 years.

5% China Shenhua (601088) announced the semi-annual report for 2019 on the evening of the 23rd. The report stated that the company realized operating income of 1163.

65 ppm, a decrease of 8 per year.

6%, net profit attributable to shareholders of listed companies 242.

43 ppm, a five-year increase of 5.

5%; deduct non-profit 226.

82 ppm, a decrease of 1 per year.

5%; basic income 1.

219 yuan, the estimated average return on net assets is 7.


The second quarter realized operating income of 593.

54 ppm, a decline of 7 per year.

84%, net profit attributable to shareholders of the parent company is 115.

56 ppm, a 10-year increase2.


The rise in the proportion of the transportation sector led to the overall recovery of the gross profit margin. The companies that continued to report the advantages of the integrated industry chain continued to operate steadily.

Affected by factors such as land requisition, regional security rectification, and inadequate outsourced coal sources, the company’s coal business realized commercial coal production of 14,540 in the first half of the year, which decreased slightly by zero.

3%; the growth rate of 21,710 coal sales decreased by 3.


The average selling price of coal was 420 yuan / ton (excluding tax), a continuous decline of 2.


In the first half of the year, the company’s long-term association reached 19310 votes, accounting for 88.

95%, the company’s coal business can maintain stable income after the thermal coal gradually returns to the green range.

The power generation business realized a total power generation capacity of 77.9 billion kWh, a decline of 40 per year.

2%; sales of 749.

600 million kWh, a decline of 40 per year.


As for the transportation sector, its own railway transportation turnover in the first half of the year reached 142.9 billion ton-km, an increase of 3 per year.

1%; the lowest sales of coal in the port was 12950, which was flat in the same period last year.

The initial freight volume is 5480 absolute, an increase of 6 per year.

2%; the previous turnover was 44.7 billion tons of nautical miles, a slight decrease of 0 every year.


Coal chemical business achieved polyethylene sales18.

65 for the first time, an annual increase of 8.

7%; polypropylene sales 17.

06 for the first time, an increase of 6 from the previous month.


The significant decrease in power generation was mainly due to the end of January, when the company and Guodian established a joint venture to complete the delivery, and the company’s capital contribution was no longer included in the scope of consolidated financial statements.In the first half of the year, the chairman of the company was changed to Wang Xiangxi, chairman of the National Energy Investment Group. The chairman of the group is more conducive to the company’s long-term stable development.

The gross profit margin of the company’s coal business segment remained unchanged at 28.

8%; gross profit margin of power generation segment increased by 5.

1 point to 25.

For the transportation sector, the gross profit margin of railways rose by 0%.

3pct to 62.

4%, port gross margin rose by 0.

8pct to 60% can reduce gross profit margin by 14.

3pct to 12%; the gross profit margin of the coal chemical sector rose by 1.

2pct to 23.

At 6%, the company ‘s overall gross profit margin increased by 1 due to the increased revenue share of the transportation sector, which has a higher gross profit 北京夜网 margin.

06pct to 42.

48%, during which the rate of expenses fell to 0.

38pct to 8.

67%, net interest rate rose by 2.

82pct to 24.


Investment strategy China Shenhua, as the largest domestic listed coal company, integrates the entire industrial chain layout of coal, power generation, ports, tons, and coal-chemical integration. Coal, power generation and transportation have become the three pillars of the company’s performance.

The company has a cost advantage, has an integrated operating advantage and scale effect in the industry, and significantly enhances the company’s ability to resist drift and risk.

In the context of supply-side reforms, accelerated replacement of advanced production capacity, the company is expected to continue to benefit from the favorable policies brought by the release of advanced production capacity, further consolidating Shenhua’s leadership in the coal industry.

The company’s dividend policy is relatively stable, and the estimation is relatively inaccurate. As the state-owned enterprise reform continues to advance, it deserves long-term attention in the coal sector.

Risk reminder: Macroeconomic downturn, coal prices fall sharply