Shanmei International (600546): The divestment of trading companies continues to improve fundamentals

Shanmei International (600546): The divestment of trading companies continues to improve fundamentals

Event: The company transferred 49% equity of five wholly-owned subsidiaries including Shanxi Chentian International Trade Co., Ltd., a wholly-owned subsidiary of the company, and 39% equity of Inner Mongolia Shanmei Shengda Trading Co., Ltd., a wholly-owned subsidiary, through publicly listed transfers;Jiangsu Shanmei Logistics Co., Ltd., the company’s controlling subsidiary, intends to transfer its 49% equity in each of the five subsidiaries, including Shanxi Coal International Energy Group Tianjin Co., Ltd., by publicly listed transfers.

On June 14, 2019, Shanxi Caihui Capital Management Co., Ltd. finally delisted and paid a total transfer price of 11 yuan, and changed the “Equity Transaction Contract” with the company and Jiangsu Logistics respectively. As of June 28, except for Inner Mongolia ShengdaThe registration procedure for industrial and commercial changes is currently being processed, and the remaining ten companies have completed equity changes.

Opinions on the company’s trading business to further reduce the burden: As announced by the announcement, as of December 31, 2018, the total net assets of the 11 subsidiaries to be transferred were -41.

420,000 yuan, the total net profit in 2018 was -13.

After the completion of the equity transfer, the expected quota will be greatly reduced, and the company’s trade performance burden will gradually improve.

The coal business is expected to increase in volume and price in the second quarter, and the performance will be significantly improved. In terms of output, once viewed, the injection of Hequ will increase the company’s output;

In terms of price, the average price of coking coal and thermal coal rose in the second quarter. In summary, the volume and price of coal business rose in the second quarter, and performance improved significantly.

Operating cash flow continued to improve: Net cash inflow from operating activities in the first quarter of 2019.

25 trillion, an increase of 36 over the same period last year.

36%, mainly due to the company’s increasing profitability of its coal business resulting in increased net income. In the second quarter, it is expected that the coal business will continue to improve, the trading business will strictly control risks, and cash flow will continue to improve.

It is expected to benefit from Shanxi’s national reform: According to the Shanxi Daily, on April 15th, the Shanxi Provincial Committee for Deepening the Reform of State-owned Enterprises was included.”Strategy and strive to achieve overall listing, two” zero breakthroughs “in the listing of new shares, existing listed companies should 四川耍耍网 strengthen market value management and gradually increase the asset securitization rate.”

As the only coal listed company of Shanxi Coal Group, the company is expected to benefit.

Investment suggestion: Give Buy-A rating with 6-month target price of 7.

28 yuan, corresponding to 13xPE in 2019.

It is estimated that the company’s net profit attributable to the parent for 2019-2021 will be 11.



15 trillion, equivalent to 0 respectively.




Risk warning: The demand for coal has fallen sharply, and the price of coal has fallen sharply.