August 13, 2010 China Coal Energy can be unbundled?

China Coal Energy (ET Net Real-time**) (China Coal) recently announced a change in the investment use of the funds raised from the issuance of A-shares in February 2008. At that time, the Company raised RMB25.3 billion (after deducting issuance costs) through the issuance of 1.5 billion new A shares. The management plans to terminate the RMB100 million project (Heilongjiang coal mine with an annual output of 10 million tons, 1.8 million tons of methanol and 600,000 tons of olefins), and reinvest the idle funds to 6 new projects (subject to approval) and replenish liquidity.

With the new coal projects raised from the A-share issuance, China Coal's production prospects are expected to further strengthen. The after-tax internal return rate of these six new projects is maximum, which allows the company to enjoy a higher return on equity than its peers.

The coal production capacity is planned to reach 200 million tons by the end of FY14. Management plans to reach 200 million tonnes of raw coal production and sales by the end of FY14, which means a CAGR of 09-14. As a result, we expect China Coal's coal production to experience rapid growth.

Production increased by 13% in FY10. In the first half of this year, the company's coal production expanded year-on-year to 62.3 million mt, and coking coal production increased 22% year-on-year to 11.1 million mt. Coal sales expanded year-on-year to 59.9 million mt.

Given the sluggish growth in power generation, we expect coal production to slow in the second half of the year and expect power generation to grow by 13% year-on-year to 100 million tonnes in FY10. We expect coal sales to grow to 100 million tonnes year-on-year.

Strong cash reserves support capacity expansion. Due to the rapid growth of earnings and the issuance of H shares and A shares in December 2006 and February 2008 respectively, China Coal has abundant net cash flow. We expect the company's cash to reach RMB51 billion in FY12.

Such a strong cash position allows the company to acquire high-quality coal mining projects.

Expansion of production scale, maintain ** rating, target price of HKD. The latest closing price of China Coal is equal to the 11-year P/E multiple and the 10-12 P/E growth rate. Given the accelerated production growth due to new acquisitions, we believe China Coal should be close to its midstream valuation range.

We extend our earnings** to 13x FY11 P/E and lower our TP to HKD from HKD, but maintain our ** rating.

August is definitely no play.,It's almost August next year.。。。

From a technical point of view, the trading volume of China Coal Energy has shrunk, the energy is insufficient, and the MACD has begun to form a green column, which is very bearish today. If you untie it, it depends on how much better your cost is.

Of course, it is good**, one of the coal faucets, high-quality energy**.

Oil is so cheap, everyone burns oil to pull. Coal doesn't sell as well as it used to.

You have to refer to it carefully, but I think ** will definitely fall below 1700 points again. It is not appropriate to intervene for the time being.

Yes, wait for ** to be in place and suck at a low level.

China Coal Energy is not low at the current point of 10 yuan, and the energy class needs to be held for a long time.

Most of the waves at the beginning of this year have been missed, and this year's **want to go to 3600 resistance, so this kind of blue chip stocks cannot be large in the short term**.

The market after the individual ** year still belongs to the ****, and the up and down range will not be particularly large! There were too many bubbles in 08, and this year it will certainly not be like in 08, and it is very unlikely that it will be below 2300 points.

On the other hand, the economic growth of the country is obviously optimistic, and the policy is not tight.

Regarding the coal companies I also want to hold, the key is that the market has been fried at the beginning of the year There is a bubble, so I also hope to press down and wait for the third quarter report to come out. This year, there are only more than 70 barrels of oil, and coal is not easy to go up. However, energy is a scarce resource, and China's petroleum has a gap of nearly 200 million tons a year, and in the long run, it is only a matter of time before coal resources will go up.

China Coal is the second largest coal producer in China, with enough coal resources to mine 9 billion.

Be optimistic about the long term and be patient.

You said the record date of the dividend shares, right? The distribution plan has not yet been adopted, and a decision on whether to allocate it will be decided on June 25.

China Coal Energy Group (hereinafter referred to as China Coal Group) is a key state-owned backbone enterprise managed by the State-owned Assets Supervision and Administration Commission, formerly known as China National Coal Import and Export Corporation, which was established in July 1982.

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Datun Coal and Power Group Co., Ltd., Pingshuo Coal Industry Company, Taiyuan Coal Gasification Group Co., Ltd., Beijing Coal Mining Machinery Factory, Zhangjiakou Coal Mining Machinery Co., Ltd. and other large-scale production enterprises; China Coal Construction Group Corporation, China Coal First Construction Company, China Coal Construction and Installation Engineering Company, China Coal Fifth Construction Company and other large construction enterprises; Coal Industry Xi'an Design and Research Institute, Coal Industry Handan Design and Research Institute and other large-scale design and research enterprises; Its overseas institutions and companies include Hong Kong Environmental Energy ******, China Coal Corporation Representative Office in Japan, Sino-Japanese Coal Co., Ltd., China Coal Corporation Representative Office in Seoul, China Coal Corporation Representative Office in Europe, Belgium Euro Development Company, and China Coal USA Company.

On the second day of listing, as the second largest coal stock, second only to China Shenhua, it will take China Shenhua as a reference object, with relatively large room for development, and can build a position in the medium and long term.