Zhengzhou Coal 600121 coal linkage is expected to become one of the biggest beneficiaries Money Tip

Category: Money tips Release Date: 2007-04-17

Source: Zhongguancun Securities

The company is located in Henan province in the domestic coal reserve of coal heartland, with the "three mines a plant", with geological reserves of 241.57 million tons of coal, recoverable reserves of 133.02 million tons, a very prominent resources. And the company's main product is the ash, low sulfur, high calorific value of anthracite and lean coal, belonging to high-quality thermal coal, have a good market needs. Coal is the driving force behind a country's economic development, the energy consumption structure in China occupy a proportion of up to 70% of China's sustained economic development is of decisive significance is bound to be country's priority list. And oil, electricity, etc. compared to the current coal prices are still very low market outlook is still great room for growth. The company is not only China's major coal enterprises, but also the use of abundant coal resources into the electric power industry, the use of coal power plants owned by rock generation, low-cost, revenue stability, and comprehensive utilization of resources of the pit-head power belongs to the state's industrial policy priorities the direction of support is expected to become one of the biggest beneficiaries of coal linkage.

Historical Information: G Cheng Coal (600121): Coal prices are still very low there is still tremendous room for growth afternoon August 29, 2006

Source: Guangzhou Bandung

Overall rise of the power unit Thursday, G, and G crown closure in the north-east electricity daily limit, while increases in the two cities, there are many first panel of the figure the power unit, the recent sustained hot weather across the country caused by electricity shortages, while the second coal-fired electricity linkage for the power unit is expected to substantially increase the performance in the second half, while the major changes in fundamentals, often create a lot of dark horse, while the main force, including funds and other institutions, often with the fundamental changes has been to adjust investment structure, orientation and position. And the Iran issue at any time caused by oil price fluctuations, thus affecting other energy sources, including alternative energy prices, so the power unit and alternative energy stocks will be a continuing hot topic. Therefore, G Zheng directly under the central focus on coal as the coal company, is the first state-owned key coal enterprises listed companies, while both coal concept of value has been seriously undervalued blue chip energy stocks are undoubtedly worthy of focused attention, as more coal and less oil in China's national conditions , as well as rich in coal resources, as opposed to wind, solar, ethanol and other alternative energy sources, coal, oil alternatives and more practical significance. Hence, "Coal Chemical Industry" industry faces the prospect of better, while the coal chemical industry refers to the raw materials for the production of coal chemical industry. Some analysts have pointed out that, in the long-term high oil prices is expected, the coal substitution effect on crude oil, the cost advantages and on this basis, to enhance profitability of the business, coal chemical industry will be given to the long-term strength of the driving force plate. And its current stock price from its commitment to a minimum reduction of 4.6 yuan / unit there with a big imagination.
G Zheng directly under the central focus of coal-mine company, is the first state-owned key coal enterprises listed company, Henan, first listed the original central enterprises. The company is located in Henan province in the domestic coal reserve of coal heartland, with the "three mines a plant" are super-technology coal, rice village, coal mines, concluded as coal and wind power plants, with geological reserves of 241.57 million tons of coal, recoverable reserves 13302 million tons of resources is extremely prominent. And the company's main product is the ash, low sulfur, high calorific value of anthracite and lean coal, belonging to high-quality thermal coal, have a good market needs. Coal is the driving force behind a country's economic development, the energy consumption structure in China occupy a proportion of up to 70% of China's sustained economic development is of decisive significance is bound to be country's priority list. And oil, electricity, etc. compared to the current coal prices are still very low market outlook is still great room for growth.
G Zheng Coal and Power Company is not only a major coal enterprises in China, but also the use of abundant coal resources into the electric power industry, the use of coal power plants owned by rock generation, low-cost, revenue stability, and comprehensive utilization of resources of the pit-head power belongs to major support from the state's industrial policy direction is expected to become one of the biggest beneficiaries of coal linkage. Last year of successful implementation of the split share structure reform, a major shareholder to adopt a debt-equity swaps for reimbursement of the occupation of funds, allows the company asset quality and profitability to be increased dramatically. Last year, the company earnings per share reached 0.31 yuan, a quarter of this year another increase of 16%, earnings per share reached 0.08 yuan, the current dynamic price-earnings ratio less than 11 times lower than the price-earnings ratio of 18 foreign mature markets.
Since the production of coal, the company to "Coal Chemical Industry" transition and thus the production of high value-added alternative to very easy. The Unit is also equipped with the current market hot spot "coal chemical industry." And the company stock reform promised shares held by controlling shareholders the right to self-access listing of the date of the circulation within 24 months are not traded or transferred; 24 months after reduction of the price of not less than 4.6 yuan / share. Far below the current stock price due to reduction of prices will undoubtedly bring their imagination.