Will the "high dividends" of the coal sector be falsified? In the context of the coal sector, which has risen significantly and the high dividend has spilled over, is there still room for the coal sector to follow-up? How much space? This report will start from the three aspects of ROE, F (dividend ratio) and PB, and analyze whether the coal sector still has investment value as a high-dividend asset at the current point in time.
ROE: Pivotal coal prices increased against the backdrop of shrinking supply from coal companies;
f (dividend rate): coal companies have abundant cash flow, less capital expenditure & most of them have dividend commitments, so their ability & willingness to pay dividends is higher;
PB: The absolute valuation of coal stocks is still low, with a PB of only 154 times, which is still low in all industries;
Yankuang Energy, which has a high current dividend yield, a bottom support for coal prices and an overseas ** upward option, is highly recommended;
We continue to recommend Shaanxi Coal Industry and China Shenhua, which have a high proportion of long-term coal, stable performance and high dividends, and China Coal Energy, which has a low valuation, a high proportion of long-term agreements, and a possibility of increasing dividends. In addition, Xinji Energy, which can exchange time for space, Huayang shares and Orchid Science and Technology, which are expected to increase dividends and improve performance, are also worth paying attention to. In terms of coking coal, considering the role of trillions of infrastructure in promoting coking coal consumption, we continue to be optimistic about Huaibei Mining, which has a low valuation and business growth points; high dividend elasticity targets Lu'an Environmental Energy and Jizhong Energy; Coking coal leader Shanxi coking coal.