Research Summary of Datong Coal Industry (601001)

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This year’s coal mine capacity and profitability?

Xinzhou Kiln has announced a nuclear reduction, which will be changed to 60 variables this year, with an output of about 100 tons in 18 years and a decline in 19 years.

Tashan Mine was put into production in 2008. It is the largest single-well mine in Asia with an approved production capacity of 1,500 tons. It can steadily contribute more than 2,000 tons of production in 2018. The output reached 2547 tons in 2018 and is expected to increase slightly in 2019.

The company is also actively applying for a nuclear capacity increase, which means that the replacement of the old capacity indicators still needs to be broken down. It may be purchased from the group or purchased from outside the main body of the group.

Tashan Mine’s 18-year net profit was 2.3 billion U.S. dollars, and coal prices have remained high since this year. In some places, Tashan Mine’s performance can remain stable.

Serenite Mine, with an approved production capacity of 500 units / year, was actually designed and constructed in accordance with the 800 principle, with an output of 458 tons in 2018 and a performance of 200 million.

The main problem of Serenite is the low price of land sales, and it may be difficult to turn around this year.

The space for cost reduction is relatively small. First, the depreciation will increase after conversion, and the cost cannot be capitalized. Second, the preliminary mining has been contracted, and the cost savings are also in place.

Subsequent improvement in Selenite’s profit is mainly a matter of expansion, depending on whether it can be approved to 800 tons of production capacity.

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The company’s existing long-term association and the proportion of coal in the market?

One.

The listed company’s long-term association / market coal ratio is approximately 5: 5.

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Does the listed company have an assessment of market value management?

One.

Market value management assessment is currently not required and has not been mentioned before.

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Activated carbon is still expected for 18 years. What is the profit forecast for 19 years?

One.

Activated carbon was fully transferred to production in 2018, and the demand was good, but the cost increased rapidly in 18 years, and the whole can still be replaced.

Currently, the activated carbon sector is still undergoing technical transformation. It is expected to be completed this month. Last year, the production capacity was 10 tons. This year, it is expected to reach 14?
15 pieces.

If the transformation is completed, the output can be seen next year, and the profit can be reversed.

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Management costs have declined in the past year. What is the trend?

One.

Over the 18 years, costs have increased and administrative costs have decreased.

However, there is not much room for the reduction of follow-up management expenses, and it is basically maintained at the current level.

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Tashan Railway still has millions of profits every year. What is the main profit model?

One.

The main operation mode of the Tashan Railway Branch is to transport Tashan and several nearby mines, the so-called Xin mine, with a annual transportation volume of 5,000 and a profitable model.

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What do you think of the reform of Shanxi state-owned enterprises?

One.

In principle, the issue of asset injection in the state reform still depends on whether the mine warrants are complete and the ownership is clear, because it involves many departments such as state assets and land resources, which cannot be solved unilaterally by the enterprise.We also need to look at the attitude of the provincial government and the strength of the overall promotion.

The scale of the company is not very good and the progress is expected. If the problems are solved in a package, the listed company may advance quickly.
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2019 performance expectations

The growth of the first quarter performance has improved significantly, which is related to the increase in the average distribution of Tashan Mine.

Considering the reduction 厦门夜网 of losses of the Cerenite and activated carbon businesses this year, the probability of performance is better than last year.