Anhuanneng (601699): The plan for cash acquisition of Cilinshan Coal Industry was translated into historical low

The company intends to 7.

52 million cash acquisition group Cilinshan Coal Industry, estimated to buy about PB.

5 times.

The company announced the progress of the acquisition of equity and related transactions. The company intends to purchase 100% equity of Cilinshan Coal Industry held by Lu’an Mining Group in cash. The purchase price is set at 7.

5.2 billion.

Cilinshan Coal Industry initially achieved a net profit of -2 in 2018 and January-June 2019.

82 ppm and 0.

820,000 yuan, the net assets at the end of June 2019 was 5.

0.6 billion, estimated to buy about 1 PB.

5 times.

The acquisition has been approved by the Shanxi State-owned Assets Supervision and Administration Commission, and is subject to the approval of the creditors of Cilinshan Coal and the approval of the shareholders’ meeting of the company.

Since the fourth quarter, the price of injection coal in Changzhi has remained basically stable. Recently, the price of thermal coal in the producing areas has 杭州夜生活网 stabilized and rebounded.

According to Wind data, since the third quarter of 2019, the price of injection coal and thermal coal in production areas has fallen weakly, but the overall price of injection coal in Changzhi has remained stable since October, and thermal coal has stabilized and rebounded recently.

The average price of Changzhi Tancheng injection coal car board and Changzhi Tancheng thermal coal car board (5500 kcal) since the early days were 913 yuan / ton and 657 yuan / ton, respectively. Compared with most of the average prices in 2018, they were only slightly smallerDown 4.

1% and 2.

7%.

The total coal production capacity of Cilinshan Coal Industry is 540 years / acquisition. After the completion of the acquisition, the profit will be promoted.

The company announced the proposed cash purchase of 100% equity of Culinshan Coal Industry of Lu’an Mining Group, involving three coal mines of Culinshan Coal Industry: Culinshan Coal Mine, Xiadian Coal Mine and Licun Coal Mine.

According to the Group’s announcement, the production capacity of the three coal mines / 18 years of output are: Cilinshan 60 rises annually / 150 tons; Xiadian coal mine 180 rises annually / 152 inches; Licun coal mine 300 annually / 161 piles, with a total capacity of 540 calories / yearThe total output in 18 years was 464.

Among them, Licun Coal Mine has entered the joint trial operation in April 2018, and officially started production on December 21, and is expected to basically reach production in 2019.

  In the first half of the year, the three coal mines contributed a total of zero net profit.

As the investment scale of Licun Coal Mine’s newly-built mine exceeds USD 6 billion, it is estimated that the costs caused by the relatively abundant cash flow of the listed company after the cumulative release and injection will decrease, and the company’s profit will continue to increase.

The company’s profitability is expected to increase the profit of the planned acquisition of Cilinshan Coal, which is estimated to be at the bottom of history.

The company’s acquisition of the Group’s coal mine landing aims to show the province’s and the Group’s support for the company, reorganize the company’s resource advantages and expand, and profitability ahead of other Shanxi coal companies.

In 2018, the company’s net profit attributable to its parent was 26.

6 ppm, asset impairment loss is 11.

100 million, non-operating expenses were 1.

500 million.

According to the website of the Shanxi Provincial Government, the main goal of Shanxi state-owned state-owned enterprises to reform their production and operation in 2019 is to increase the total profit of provincial state-owned enterprises by more than 10% and reduce the asset-liability ratio by 1%.

5 units.

It is expected that asset impairment losses will decline this year, coal profit will remain at a high level, and profit growth will increase slightly compared to the previous 18 years.

We expect EPS for 2019-2021 to be 0 respectively.

98 yuan, 1.

06 yuan and 1.

08 yuan, the current total corresponding to 19 years PE is 7.

0 times.

It is expected that after the injection of Cilinshan Coal Industry, the company’s profit will be further improved. With reference to the comparable company evaluation and the company’s performance growth rate, the company will be given 10 times PE in 19 years, corresponding to a reasonable value of 9.

80 yuan / share, maintain “Buy” rating. Risk reminder: Large-scale impairment of integrated minerals; production release exceeds expectations; gradually affected by the growth of demand, the price of injection coal and thermal coal exceeds expectations.