Rui Maotong (600180): Financing achievements under pressure and significant progress in cooperation with upstream leaders

Event: On August 29, the company released its 2019 Interim Report, reporting that the two companies achieved operating income of 165.

29 ppm, down 18 years ago.

04%; total profit 3.

7.9 billion, previously downgraded to 8.

65%; net profit attributable to mother 3.

21 ppm, degraded ten years ago.

10%; net profit after deduction to mother 1.

93 ppm, down 53 years ago.

94%; net cash flow from operating activities18.

07 trillion, an increase of 9 in ten years.

22%; basic income is 0.

32 yuan.

Among them, the company achieved operating income of 92 in the second quarter.

44 trillion, an increase of 3 in ten years.

87%, an increase of 26.

88%; total profit is 0.

9.2 billion, previously downgraded by 2.

11%, down 67% from the previous month.

76%; net profit attributable to mother 0.

8.4 billion, down 6 quarterly.

16%, down 64.

74%; net profit after deduction is -0.

06 billion US dollars, down 109 a decade ago.

25%, down 103.

07%; net cash flow from operating activities 3.

09 million yuan, down 85 years ago.

76%, down 79.

35%; basic return 0.

08 yuan.

Opinion: The company’s business structure continued to adjust in the first half of the year.

Since the second half of 2018, the company’s funding shortage has not been alleviated for the time being. The company actively adjusted its business structure to stabilize growth and returned funds to repay debts.

Coal shipments reached 2907 in the first half of 2019.

71 Initially, the year fell by 275.

71 (8.


In the first half of the year, the company’s coal supply chain management business revenue was approximately 133.

35 ppm, down 23 years ago.

5.1 billion (14.99%); accounting for 79 in the first half of 2018.

56% up 2.

78 pct to 82.

34% of the factoring receivables were 68 from the end of 2018.

9.6 billion fell by 0.

6.6 billion (-0.

96%) to 68.

300 million.

The company’s business has expanded to profitability. The coal supply chain management business with high stability is concentrated, and factoring and non-coal bulk businesses have contracted.

At the same time, there were also some adjustments within the coal business. In the first half of 2019, sales outside the coal sector exceeded 400 mm, with a long-term growth of 58.

05%, a breakthrough was made in the development of overseas energy consumption markets.

In the first half of the year, the company’s interest-bearing debt contracted, and the capital turnover efficiency improved.

At the end of the first half of 2019, the company’s debt budget was 159.

67 trillion, asset-liability ratio 72.

80%, an increase of 10 over 2018.

8 billion and 0.

53 percentage points; among them, the interest-denying and interest-resistance rates have decreased by 11 compared with the end of 2018.

03 billion and 6.

69 to 45.

1.5 billion and 20.


In the first half of 2019, the company’s inventory turnover days, accounts receivable turnover days, and accounts payable turnover days were 19 respectively.

55 days, 40.

59 days, 43.

56 days, an increase of 7 over 2018.

31 days, increase by 1.

46 days and down 9.

47 days, net operating cycle is 16.

59 days, down by 0 from 2018.

In 7 days, the company strengthened management and selection of upstream and downstream customers, and improved the efficiency of fund management in the supply chain business.

The establishment of a joint venture with an upstream leading coal production enterprise may significantly expand the company’s development space.

In August 2019, the company announced that it has jointly established a joint venture with Shaanxi Coal Industry to complete the industrial and commercial registration and obtain a business license. The company’s wholly-owned subsidiary was included as the ultimate investor in the capital increase project of Shaanxi Jinmei (Rizhao) Co., Ltd., andSignificant progress has been made in leading industry cooperation.

With the gradual development of the business of the joint venture company, the company’s capital investment, ability to acquire resources and business expansion will be significantly improved, which will have a major positive effect on the company’s development.

Profit forecast and rating: Continuously downstream requirements for coal quality and the company’s supply chain management platform efficiency, financing and risk control capabilities will be improved. In the future, based on the washing and processing in the coal supply chain, coal storage, and financial services will further highlight coal supplyThe value-added capability of the chain will be further improved through the gradual development of cooperation between the company and industry leaders.

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

67, 0.

79, 0.

89 yuan, currently expected 8.

00 yuan (the closing price on August 30, 2019), corresponding to the PE of 19-21 is 12X, 10X, 9X, maintaining the “Buy” rating on the company.

Risk factors: The financial environment continues to tighten; the joint venture’s business progress is less than expected; exchange rate fluctuation risks.