Is expected to continue to buy in coal assets, external

The interior may purchase subsidiary rights: the company to strengthen the control of the subsidiary, holding less than 51% of the Xin Yi rich coal ( 49% ) were transferred ownership of more than 51%, other coal companies will further enhance the proportion of equity. Rights and interests subsidiaries are assumed to 100%: Hua Ying Shanxi increase production capacity 680000 tons = Huaying jintaiyuan 900000 tons *10%+ Guang Bai Gou coal 60*49% coal 60*49%+.

Silver source coal coking increase the production capacity of 960000 tons of =195*49%, Kang Wei coal to increase the production capacity of 1330000 tons, the total increase of production capacity of 2870000 tons.

External continue to buy coal assets in coal mine production capacity: acquisition of Shanxi has reached 9650000 tons, the future may further acquisitions to 15000000 tons, ten years planning five years. Is expected to realize in advance group 30000000 tons of strategic plan ( the original plan in 2020 before the implementation of the Shanxi capacity 15000000 tons, 10000000 tons of Shaanxi, Xinjiang 5000000 tons ).

New shale gas field, is expected solar-wafer to become the outbreak of future growth point

The company a wholly owned subsidiary of Shanxi Hua Ying Energy Investment Co. Ltd. in Guizhou block two Fenggang shale gas mineral resources promulgated by the Ministry of land and resources exploration permit, exploration expiration date: January 18, 2013 to January 18, 2016, the exploration area: 1030.404 square kilometers, the block exploration total investment is 437000000 yuan, is expected to explore the shale gas resources amount to 127180000000 cubic meters.

Rising coal prices, the performance elasticity

The company is a pure coal companies,Water slide coal washing rate as high as 65%, all in accordance with the washing estimation, hypothesis coal prices rose 100 yuan / ton, we calculated thickening performance: coke coal interests output of 7480000 tons of *65%*100/1.17*0.75=3.1 billion yuan, fold to 0.18 yuan per share earnings, thickening of the performance rate of 25%. The performance of elastic rising coal prices by up to 3 times ( 25%/ ( 100/1280 ) ).

Profit forecasts and investment rating

Expected the company in 2012-2014 EPS were 0.57 yuan, 0.71 yuan, 0.86 yuan and 1.2 yuan, respectively year-on-year growth of 212%, 24%, 21% and 39%.

Growth of the company has high, has a strong internal, external asset purchase expectations, new entrants to the shale gas field is expected to become the outbreak of future growth, maintain strongly recommend investment rating, target price of 14 yuan to give.