A number of coal enterprises last year profit multiplication industry high prosperity can continue

2022-05-05 0 By

In 2021, coal prices staged a “roller coaster” market: China’s coastal thermal coal purchase price index fluctuated from 584 yuan/ton in early March to 1528 yuan/ton in mid-October;At the same time, the main contract of thermal coal futures once rushed to 1982 yuan/ton, bohai Rim port spot quotation even broke through 2500 yuan/ton.After late October 2021, under intensive policy regulation, coal price gradually returned to a reasonable level, but it still increased significantly compared with 2020.In this context, coal enterprises in 2021 operating performance generally increased.According to the reporter statistics, as of January 22, 12 coal listed companies have disclosed 2021 performance forecast.Among them, net profit of 11 companies increased year on year, and net profit of 9 companies increased by more than 100% at the highest.In 2022, will the high prosperity of the industry continue?The industry expects that in 2022, coal supply and demand will further return to balance, coal prices will generally stabilize throughout the year, and the industry will seek new breakthroughs in transformation and upgrading.Coal prices rise Coal companies are generally expected to be affected by the rise in coal prices and other factors, coal enterprises in 2021 operating performance increased.China Coal Energy in 2022 January 14 evening disclosure of performance forecast, 2021 net profit is expected to 11.77 billion yuan to 14.38 billion yuan, year-on-year growth of 99.4% to 143.6%.Jinkong Coal is expected to report a net profit of 4.868 billion yuan in 2021, a year-on-year increase of 455.84%.In 2021, Shanmei International is expected to make a profit of 4.5 billion yuan to 5 billion yuan, up 444.14% to 504.59%.Jingyuan Coal and Power expects a net profit of 720 million yuan in 2021, up 61.78% year-on-year.As for the main reason for the forecast growth, these companies pointed to the continuous increase in the coal market price.According to the disclosure of Xinji Energy, commodity coal in 2021 annual comprehensive price of 622.97 yuan/ton, year-on-year increase of 192.11 yuan/ton.Xinji Energy is expected to achieve net profit of 2.429 billion yuan in 2021, a year-on-year growth of 186.7% Anyuan Coal industry also said that affected by market conditions, the coal price continued to rise in the middle of the year, commodity coal price significantly increased year-on-year, the company’s annual gross profit of commodity coal increased 100% year-on-year.The company expects to make a profit of 50 million to 60 million yuan in 2021, turning from a loss to a profit year-on-year.In addition, Jin Kong Coal also revealed that in 2021, the company will build intelligent mines, promote small coal pillar mining, increase cost reduction and efficiency, strengthen operation and management, and bring greater growth to the company’s overall profitability.China National Energy Group, the largest domestic coal enterprise, also announced on January 21, 2022 that it would complete coal production of 570 million tons in 2021, up 8.3% year on year.Coal sales totaled 770 million tons, up 8.8 percent year on year.Meanwhile, The National Energy Group achieved a 24.7 percent year-on-year increase in operating revenue and a 7 percent year-on-year increase in net profit in 2021.Entering 2022, Indonesia, the world’s largest coal exporter, has announced a ban on coal exports.Affected by this news, domestic thermal coal futures prices appear volatility.In this regard, the industry analysis, foreign policy changes short-term impact coal supply end, but in the long run, China’s coal price does not have a substantial rise in the basis.The reasons are as follows: First, the import of coal from Indonesia is limited in China’s total consumption.Data showed that China produced 3.67 billion tons of raw coal in November 2021, but imported only 290 million tons of coal, of which Indonesian coal accounted for only 4% of the total coal supply.Second, the recent coal supply policy is still being implemented.Take The National Energy Group as an example. From January 1 to 12, 2022, the group produced 21.09 million tons of coal by itself, up 8.7% year on year. The coal produced on January 6 and 7 were 1.862 million tons and 1.873 million tons respectively, higher than the historical level of the same period.”Coal price increases are expected to be limited in the first quarter due to high coal inventories and the recent implementation of coal supply policies.””Said the person.For the trend of the coal market this year, Citic Securities analyst Zu Guopeng believes that the coal boom is expected to fluctuate in 2022, but still maintain a high level.”2022 or the year when coal prices return to medium-term equilibrium prices.”Zu Guopeng introduced that after experiencing a substantial increase in demand in 2021, it is expected that industrial electricity and real estate policies will still support coal demand in 2022. The industry may present a pattern of double supply and demand, but it will return to the balance of supply and demand from extreme supply tension.In 2022, the average market price of thermal coal may fall to 850 to 900 yuan per ton, a year-on-year decline of 12 to 15 percent, but the absolute price will remain high.In September 2021, The State Council issued the “Opinions on The Complete, accurate and comprehensive Implementation of the New Development concept to achieve carbon peak and carbon neutrality”, requiring accelerating the pace of coal reduction and strictly controlling the growth of coal consumption.In this context, how will the coal industry and enterprises develop?This from the industry leading intensive name change, can be slightly peeped.On December 7, 2021, Yanzhou Coal Disclosed that the company name was changed from “Yanzhou Coal Industry Co., LTD.” to “Yankuang Energy Group Co., LTD.”.The company subsequently announced that in the next 5 to 10 years, it will lay out five industrial development directions: green mining, high-end new chemical materials, new energy, high-end equipment manufacturing, and smart logistics.In terms of high-end new chemical materials, the company strives to produce more than 20 million tons of chemical products annually from 5 to 10 years, with new chemical materials and high-end chemicals accounting for more than 70%.In terms of new energy, it will promote the development and construction of new energy industry projects such as wind power, photovoltaic and supporting energy storage.The installed scale of new energy power generation will reach more than 10 million kilowatts within 5 to 10 years, and the hydrogen supply capacity will exceed 100,000 tons per year.Open-pit Coal Disclosed on November 18, 2021 that in order to adapt to the needs of industrial structure adjustment, the company changed its name to Power Investment Energy, transforming from the traditional coal, electricity and aluminum energy provider to green power.As of November 2021, the company has a capacity of 46 million tons of lignite, 1.2 million kw of thermal power and 860,000 tons of electrolytic aluminum.In addition, the company’s new energy grid size of 1.6 GW, in hand and planning orders of about 5.3 GW.Some market analysts believe that under the “dual carbon” policy, the business model and development concept of traditional coal enterprises are constantly updated and changing, and the change of name and transformation will also bring the change of valuation accordingly.In addition, China Shenhua, Shaanxi Coal industry and other leading companies also issued coal mine intelligent development plan, increase intelligent investment.Among them, China Shenhua plans to achieve all intelligent coal mines by 2025.Source: Xinhua Finance review: Tan Lugang