Huan’an and Huaneng’s (601699) 2018 Annual Report Comments: Revenue Meets Expected Estimates Still To Be Repaired

This report reads: Lu’an Huanneng’s 2018 revenue is in line with expectations, but the depreciation and restructuring of mines related to asset impairment dragged down performance. We believe that the demand for coal injection is expected to drive future performance growth, and the company’s valuation is upRepair space.

  Investment Highlights: Revise down earnings forecasts and 南京夜网 maintain a “cautious increase” rating.

Combined with the decline in coal prices since 2019 and the uncertain impact of downstream demand, we cut the company in 2019?
EPS to 0 in 2020.


04 yuan (down 9.

2% / 8.

0%) plus EPS forecast for 2021 (1.

05 yuan), maintaining 8.

Target price of 33 yuan, maintain “cautious increase” rating.

  Revenue was in line with expectations, and impairment losses dragged down performance.

Realized operating income of 251 in 2018.

4 billion, an annual increase of 6.

78%, net profit attributable to shareholders of listed companies26.

62 trillion, an increase of -4 in ten years.

29%, net of non-attributed net profit 26.

54 ppm, a ten-year increase of -4.

53%, basic profit income is 0.

89 yuan, an increase of -4 in ten years.


Affected by the depreciation of the relevant assets for depreciation and reorganization of mines, the company continuously reports impairment losses.

1.4 billion, an annual increase of 262.

17%, dragging down performance.

  Security inspections are tightening, imports are expected, and demand for injection coal is improving.

Since the early days of mines, chemical safety accidents have occurred frequently, and domestic security inspections have continued to strengthen, and supply may occur.

Recently, Shanxi Province issued the “Notice on Carrying out Special Inspection and Rectification Actions in the Coking Industry” to comprehensively rectify issues such as illegal production and unlicensed sewage in the coking industry. The rectification action lasted from 3 months to 9 months.

In addition, Australia’s imports of high-quality main coking coal have decreased, and domestic low-sulphur high-quality main coke resources are relatively tight, and prices have been supported to a certain extent, which will soon stimulate the demand for injection coal.

  The cost management level is excellent and the capital structure is continuously optimized.

The company’s expense management level is 杭州桑拿 excellent, and the company’s expense subsidy was 18-2016.

78% / 16.

32% / 13.

12%, showing a continuous downward trend, while the asset-liability ratio continues to optimize, in 2018 fell to a three-year low of 65.


  risk warning.

Coal prices fell more than expected, asset impairment risks, and macroeconomic risks.