Minutes of Pingmei Coal (601666) Conference Call
In the first quarter of the company’s budget, the comprehensive bid for commercial coal was 680 yuan, and then it was increased by 3% instead of 498 yuan for thermal coal.
2% of other coal washing was a small amount of 176 yuan, a large amount, and its contribution to performance was negligible.
The company’s 2018 annual report data shows that the proportion of clean coal has fallen by 120%, accounting for less than 30%. Will there be any changes in the production and sales structure this year?
Last year’s final input did not keep up, the raw coal produced was not enough, and the coal quality declined.
The quality of refined coal in some of the company’s mines declined.
There is also a decrease in the depreciation period last year and an increase in the amount of depreciation.
Coupled with the impact of environmental governance policies, several factors have led to improved performance.
This year, the company’s goal is to enhance the quality of coal, produce more clean coal, and carry out structural adjustment.
This year’s coal output is expected to reach 1,000 tons.
At present, the output of clean coal in the first quarter of 2019 is 237 tons, and there should be a growth interval. The second and third quarters are the peak production period. The output of clean coal is driven by raw coal. The output in the second and third quarters may continue to rise.
At the end of last year, the state began to suspend and rectify the production of deep high-risk mines, including the subsequent restriction of production capacity. The mines are mainly coking coal mines, which will affect the company.
How will crops across the coking coal industry be affected?
This policy has been implemented, and the operation requires that the expert group first check the mine acceptance, which was completed last month.
The qualified mines are released for production, and the unqualified ones are suspended.
All of the company’s mines have passed the acceptance inspection and are currently in a state of continuous production. The production has not been greatly affected.
For the entire industry, coking coal output will decrease, but the reduction is not too great.
It just reduced the production capacity by 20%, which has little impact on the entire industry.
Due to policy requirements, the production capacity has been reduced by 20%. The mine’s own geological conditions determine the vulnerability of mining. The previous capacity utilization rate has not reached 100%.
Therefore, a 20% reduction in output does not really reduce the 20%.
The production of coking coal is very difficult. It is difficult to dig deeper in coking coal, and there are more semi-gases in coking coal, which has an impact on safety.
The price of thermal coal is often restricted, but coking coal is a raw material for metallurgical coal, so the market price is subject to greater restrictions.
Our company’s clean coal is up an average of 5% every year.
Eight coking coal companies accounted for 50% of the market.
As a “coking coal complex”, there is consensus on the price, because the coal price plummeted in 2015 and the price war within the industry led to vicious competition. In 2015, the company lost 1.5 billion yuan.
Therefore, the degree of competition in the industry has eased and pricing is more stable.
The sales volume of commercial coal in the first quarter increased by 20% every year. The growth rate was at most the clean coal. Is the sales growth driven by the increase in output alone or is it driven by market demand?
There are two factors: one is that the output has actually increased, and the other is that the market is not bad. If there is only an increase in output and there is no market, sales will not reach such a high level.
At present, the top five customers of the company are all large steel companies, and the company is confident in focusing on coal prices.
In the past two years, the company’s coking coal has also expanded to overseas markets due to its superior quality and has been exported to Japanese and Korean companies. The other party’s feedback on the quality of coking coal can replace the beautiful Fengjing coal mine.
The company’s main coking coal is very competitive internationally. Last year, it exported 100 inches. However, there are certain procedures for coking coal export. It is necessary to find qualified agents.
There is currently no scale to realize exports.
The company’s pricing methods and overall price trends are based on quarterly pricing of refined coal to customers, which are adjusted quarterly.
At present, prices have stabilized in the second quarter, and there is no specific data for the time being.
The 19-year plan for the production of clean coal disclosed in the company’s annual report is 1,000 inches, increasing year by year.
However, the output of raw coal fell slightly earlier than the previous 18 years.
How does the company think about making plans?
Judging from the completion of the first quarter, this year’s plan can be completed.
Due to the experience of last year and the annual routine of each year, the company has two indicators, one is the planning indicator and the other is the goal of struggle.
The goal of the struggle is optimistic, and the goal of the plan is more cautious.
Expansion of the planned targets has been expanded initially, and cautious expansion has been initially carried out, for fear of over-high targets causing misunderstandings.
Does the change in depreciation last year have any impact on this year?
There is also an impact on this year, as the extension of the depreciation period has led to an increase in annual depreciation.
Because a few years ago, it temporarily expanded and owned cash.
The amount of underground mining needs to consume a relatively large amount, inadequate expenditure in previous years, resulting in a production gap in 18 years.
Coal quality, production capacity replacement, output can not keep up.
After last year, the digestion of unfavorable factors was basically completed.
In the next step, the company intends to promote smart mines.
The modernization speed of coal mines is relatively slow. It is expected that there will be no staff on the underground, less staff on duty, and more online monitoring.
The subsequent occupation of related equipment is also relatively large.
The depreciation of ton coal in 17 years is about 25, and the depreciation of ton coal in 18 years is about 50. Does the depreciation in 19 years also maintain a high level?
The main purpose is to increase equipment investment, expand output in the future, and improve production efficiency.
To promote centralized mining, the current strategy is to focus on increasing the single yield and single-sided level, and concentrating previous multi-directional mining in one direction.
Improve efficiency, increase production, and reduce headcount.
Q: The sales volume in the first quarter increased significantly. What is the level of coal inventory in the first quarter?
The market demand is better, and the company’s coal has a better reputation in the market. It has always been for reference.
There is very little basic inventory and basically zero inventory.
Even because the supply of raw coal is not available, the company needs to purchase a portion of Shanxi’s coal.
Reprocessing increases added value.
The comparison value of external customers’ demand for the company’s coal. We purchase raw coal and do washing and washing according to customer needs.
This can also solve the problem of strong downstream demand and our inability to supply.
At the same time, we increase our production to prevent idle capacity.
Question: The company disclosed that the transaction costs are 25% of the major shareholders. What are the main products purchased and what do they do for the downstream steel mills?
What we purchase from steel companies is steel, various special steels and U-beams used underground.
The company purchases production equipment and some coal from major shareholders.
We are unified bidding procurement.
Question: The company’s production capacity is relatively stable. Do you have any plans for capital expansion in the future? Capital expansion will focus on two directions.
The first direction is automation and intelligence.
The second plan is the underground ladder project, and the number of projects under construction in the annual report will increase.
Because of the cash balance, a large amount of pre-production reserve work was started.
Once needed in the future, the company can still have room to increase production.
Q: The progress of the group’s state reform. The group’s state reform is in the forefront in Henan Province. Among them, the group’s coking section has private companies in which it holds shares.
The group’s own equity budget and Baowu Iron and Steel each share a stake.
Q: The growth rate of depreciation per ton of coal in the cost of 18 years, but the labor cost is basically flat.
The next step may depend on the provincial plan. The group’s direction is to make good use of the three listed company platforms.
Will labor costs increase significantly in 19 years?
Management costs have fallen in recent years, and whether they will rise. Management costs will not rise. The company adopts a comprehensive budget, not a zero-based budget.
Expense type is based on the previous year, and the index is expected to be given each year.
Management costs will not increase significantly.佛山桑拿网
Expenditure on R & D will increase as the company develops smart mines.
For the production of high-yield and high-efficiency mines, more research projects have been absorbed.
The increase in labor costs is relatively slow, and the two components constitute labor costs.
Part of it is staffing.
The other part is per capita wages.
With the company’s benefits continuing to rise this year, labor costs will increase slightly.
The number of companies is working hard, and there is still room for reduction this year.
The group has a three-year personnel optimization plan.
Adjust non-production and business personnel.
Transfer reserve personnel and reserve personnel from the main production industry.
There are three main aspects: 1) Relevant personnel from the three supply and one industry are transferred and accepted by the municipal government; 2) Retirees are transferred to the government to reduce pension expenses; 3) Young non-ground personnel are transferred to emerging industries, companiesThe company plans to establish a joint chemical industrial park with an investment of about 2 billion yuan, which is the company’s main transfer position.
Therefore, the cost of human resources has remained basically stable in the near future, and will not increase significantly.
Q: What is the company’s attitude towards sustainable planning.
Purpose of company repurchase.
From a corporate perspective, corporate leaders are considered low.
Judging from the estimated indicators, it is now that the PB is relatively low.
The company launched a repurchase program because it had a cash balance for 18 years, and plans to gradually return to a reasonable level and range through repurchase.