In-line performance. 07 turnover increased 29.9% yoy to 36.82 billion yuan and net profit attributable to the company’s parent, 90.3% yoy to 5.17 billion yuan. The company reported diluted EPS of 0.39 yuan with a pretax dividend of 0.62 yuan cash for every 10 shares.
Output of main products. In 07, the company saw fast growth of the three core businesses: coal, coke and mining machinery. Production of self-owned raw coal, coke and mining machinery reached 83.27 million tons (+25.2% yoy), 3.37 million tons (+42.8% yoy) and 202,000 tons (+24.4% yoy) respectively while sales of self-owned spot coal, coke and mining machinery stood at 69.32 million tons (+27.0% yoy), 3.64 million tons (+65.5% yoy) and 207,000 tons (+34.8% yoy) respectively.
...
Earnings forecast and rating. Our EPS forecast is 0.51 yuan for 08E and 0.63 yuan for 09E. Given its industrial leading position and upbeat prospects of its coal business, we reiterate our OVERWEIGHT on the counter.